First Indian farmer-led Sahyadri Farms raises Rs 310 crore in funding European investors

• ByStartupStory     |    September 16, 2022

A group of impact-oriented investors provided Sahyadri Farms Post Harvest Care Limited with Rs.310 crores (about €40 million) in expansion financing. Incofin, Korys, FMO, and Proparco see Sahyadri Farms as well-positioned to assist farmers in operating their enterprises more profitably and sustainably.

India is home to young, ambitious people (74% of the population is under 45 years old) intent on bettering their lives via hard labour and entrepreneurship. But, the nation still confronts obstacles related to gender inequality, lack of education, and disparity regarding generational wealth. The problem of obsolete technology, inefficient supply chains, and a lack of access to financing still is a huge hindrance in the path of the farmers. The nation is seeing a major drive towards entrepreneurship in an effort to overcome these complex difficulties. Sahyadri Farms is an excellent and encouraging example of a rural business that provides complete solutions to small and marginal farmers.

In 2010, a group of ten farmers started the production and export of fresh grapes to Europe. This effort has evolved into Sahyadri Farms, the biggest exporter and processor of fruits and vegetables, serving over 18,000 farmers and more than 31,000 acres of land with nine crops. The firm goes with its farmers from their crop selection to their farming procedures, from their inputs to how they harvest and market their agricultural goods. The company provides a digital platform that educates farmers about high-yield crop types, farm inputs, real-time climatic data, and market access. Sahyadri has a huge socio-economic impact on the lives of farmers.

Namdeo Pawar, one of the farmers who benefitted from the corporation, said: “In 2012, I was on the verge of selling my land. Sahyadri supported me, helped me get back up, and I pushed myself to return to work. Trough Sahyadri, my income increased. In 2014, I even repaid my bank loan.” Also for farmer Anil Dawre working with Sahyadri Farms brought about a turnaround: “I farm on less than one acre, because a part of my land is taken up by my home and an animal shed. Group farming turned out to be a success. My parents never imagined their son’s produce would travel abroad. Their joy knows no bounds.”

The funding from Korys, FMO, Proparco, and Incofin will be used to expand the farmers’ businesses. Sahyadri Farms wants to increase its processing capacity for fruits and vegetables-based goods, establish a biomass plant to produce power from process waste, and improve its infrastructure, including its packhouses.

Vilas Shinde, founding farmer and Managing Director of Sahyadri Farms: “The idea of Sahyadri Farms is to unite farmers and make them think like professional entrepreneurs. We are building a sustainable, scalable, and profitable organization for all our stakeholders by making farming profitable and viable activity for each small and marginal farmer.” 

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