Two Brothers Organic Farms Secures Rs 58.25 Crore in Series A Funding Led by Rainmatter
- ByStartupStory | June 26, 2024
Two Brothers Organic Farms, a direct-to-consumer (D2C) organic grocery brand, has successfully raised Rs 58.25 crore in its Series A funding round. The round was led by Rainmatter, an investment initiative by Zerodha, contributing Rs 50 crore. Additionally, the funding saw participation from Raju Chekuri, founder of NetEnrich.
The fresh capital infusion will be utilized to enhance the startup’s business growth in India and the US, explore demand-side opportunities, and expand supply-side operations. This latest round follows the Rs 14.5 crore pre-Series A round in April 2023, which included investments from Bollywood actor Akshay Kumar and cricketer Virender Sehwag.
Nithin Kamath, Founder and CEO of Rainmatter, expressed his enthusiasm for the investment, stating, “At Rainmatter Health, all of us are conscious of our health, and we keep having discussions about food, fitness, nutrition, and health. And we have always questioned stuff like ‘Is the atta we consume safe?’ or ‘Does milk have harmful antibiotics?’ These questions pushed us to find and support Indian startups trying to make Indians healthier. Two Brothers Organic Farms is one such startup. We’ve not only invested in them but also are customers – enabling feedback for them. It’s also amazing that the Two Brothers’ team works with small farmers and improves their livelihood.”
Founded by Satyajit Hange and Ajinkya Hange in 2019, Two Brothers Organic Farms offers a diverse range of organic products, including cultured ghee, herbal ghee, cold-pressed oils, native heirloom flours, natural sweeteners, immunity and wellness supplements, single-origin spices, and native varieties of rice, pulses, legumes, and millets. The startup serves around three lakh customers, boasting a repeat purchase rate of 69%. It has demonstrated a 70% year-on-year growth rate over the past four years.
Primarily operating online, Two Brothers Organic Farms generates 65% of its revenue from its website, 15-20% from online marketplaces, and maintains a small offline presence contributing 7-10% of sales. The customer base predominantly comes from urban areas, with 45-46% hailing from Delhi-NCR, Bengaluru, Hyderabad, Chennai, Karnataka, Maharashtra, and Mumbai, while the remainder comes from Tier II, III, and IV cities.
The startup collaborates with over 4,800 farmers across 17 states and territories in India, with a significant concentration in Maharashtra, Karnataka, and Gujarat, covering nearly 5,000 acres of farmland.
“We are glad to have like-minded individuals and organizations participate in this fundraising effort who understand and support our vision for organic food business in India and abroad. This funding round will empower us to create an organic ecosystem which sits on the value base of conscious food while it is clean and sustainable,” the Hange brothers said in a joint statement.
Looking ahead, Two Brothers Organic Farms aims to achieve Rs 500 crore in revenue within the next four years and support over 50,000 farmers.
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