Agritech Leader Leads Connects Secures ₹500 Crores Investment from FMCG Giant BL Agro

• ByStartupStory     |    September 13, 2023

Full-stack agritech startup, Leads Connect, has secured a funding of INR 500 crores ($62.5 million) from FMCG company BL Agro Industries Ltd. This investment aims to bolster the agritech capabilities of Leads Connect, providing increased value to farmers.

BL Agro’s funding in Leads Connect will be spread over three years, eventually leading to India’s prominent FMCG firm acquiring a controlling stake in the startup. Leads Connect specializes in farm analytics and advisory services, leveraging agritech-driven data analytics, modeling, crop-cutting experiments, risk management, financial services (including farmer loans), and direct procurement from farmers.

The capital infusion will enable Leads Connect to advance its technology, extend its reach to farmers, Farmer Producer Organizations (FPOs), and cooperatives, and expand its beneficiary farmer base by establishing AGRANI Centers in various cities. It will also support awareness campaigns, facilitate mergers and acquisitions, promote contract farming, and invest in research for deep tech and AI/ML applications in agriculture. Additionally, it will improve the quality of procurement and enhance the supply chain cycle for BL Agro.

Founded in 2009 by Navneet Ravikar, Leads Connect has been actively working on improving market linkages and will now enhance BL Agro’s supply chain management as part of this collaboration. BL Agro aims to leverage Leads Connect’s comprehensive farm value chain solution, encompassing farm advisory, fintech interventions, and market linkage, to establish a stronger connection with farmers. This partnership seeks to bring farmers closer to buyers, ensuring better prices and markets for their high-quality produce while maintaining control over quality and pricing.

Navneet Ravikar, Chairman, and Managing Director of Leads Connect Services, commented on the investment, stating, “With agritech taking the lead, Indian agriculture stands at a turning point. Agriculture contributes nearly 20% to India’s GDP, and changing weather patterns and sustainability challenges have posed significant hurdles for the industry. It’s time for agri-tech to play a more substantial role in boosting productivity and addressing the challenges faced by farmers. Our partnership with BL Agro will enable us to expand agri-tech and agri-fintech in the country, delivering greater value to Indian farmers.”

Ashish Khandelwal, Managing Director of BL Agro, welcomed the collaboration, saying, “We are delighted to announce our strategic investment in Leads Connect, aimed at forging a new chapter in the Indian agri-tech industry. Over the next three years, we will invest Rs. 500 crore, leading to a controlling stake in Leads Connect. The synergy between BL Agro and Leads Connect will enhance market linkages, offering Indian farmers more value. We hope this partnership will bring farmers closer to consumers through improved supply chain management.”

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