Agri-investment Startup Growpital Achieves Rs 55 Crore Revenue in FY23 with Profits
- ByStartupStory | July 28, 2023
Growpital, a pioneering agriculture investment platform, has witnessed remarkable growth and profitability since its inception in 2020. The company proudly announces a significant revenue surge, crossing Rs 55.66 crore during the fiscal year ending March 2023, compared to Rs 3.24 crore in FY22.
Co-founded by Rituraj Sharma and Krishnna Joshi, Growpital enables retail investors and NRIs to invest in commercial agriculture projects, effectively deploying funds and resources into various agricultural ventures. These investments serve as working capital for the company, which strategically allocates them to supervised agricultural projects led by a team of experienced agriculture professionals and farmers.
The company generates revenue through the sale of crop produce and imposes a lock-in period of 12 months. Early withdrawal results in the deduction of payouts from the original investment, with the remaining amount returned to investors.
Growpital proudly offers tax-free fixed-profit sharing to investors, providing attractive returns ranging from 10% to 15% on investments. The platform has successfully raised over Rs 90 crore from more than 2,000 investors and deployed these funds across 3,500 acres of agricultural land. The company’s vision is to promote tax-free retail investments, leveraging agricultural income exemptions under the Indian Income Tax Act.
During FY23, farming expenses, including the purchase of farm produce and operational costs, constituted nearly 94% of total expenses, amounting to Rs 49.34 crore, a notable increase from Rs 3.17 crore in FY22. Employee benefit costs also surged to Rs 1.18 crore in FY23 from Rs 8.8 lakh in FY22.
In the last fiscal year, the company allocated Rs 10 lakh for travel expenses, contributing to a total expense of Rs 52.6 crore in FY23, compared to Rs 3.3 crore in FY22.
The company’s rapid growth also translated into substantial profits, witnessing a multifold surge to Rs 3.05 crore (profit before tax) during FY23, up from Rs 1 lakh in FY22.
Growpital bears the risk associated with natural calamities such as floods and droughts, mitigating these risks through diversified investments in different crops across various states and securing insurance as needed.
As the demand for exotic fruits, vegetables, and staple crops rises, ventures like Growpital play a crucial role in providing capital and reducing risk for farmers, contributing to sustainable agriculture and improved livelihood opportunities in local communities.
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