Team:

College: IIM Calcutta Vaishnavi Ravi | 0047/55

Solution Theme: Agricultural Innovation/Agritech Shikhar Singhi | 0062/56
Deeksha Sinha | 0419/56
Contact: 8239822776
OPPORTUNITY IN
AGRICULTURE
Agriculture contributes about 14.4% to India’s GDP [Economic Survey 2018-19, PRS]. It is
the primary source of livelihood for about 58% of India’s population [IBEF]. Gross value
added by agriculture, forestry and fishing is estimated at upwards of USD 270 billion in
FY18
Land holdings in India are small and segregated, labour is inefficient and insufficient, and
there are excessive layers of middlemen between the farmers and the consumers
Private sector participation is redefining the sector through innovative solutions (such as
Big Data and Farm-as-a-Service) and making it more efficient via improved access to
technology, capital and entrepreneurial skills
Over the past 6 years, investment in the sector has increased 13-fold, with innovations in
precision agriculture, farmer platforms, rural fintech, B2B and B2C marketplaces [The
Ken]
 OPPORTUNITY CANVAS
The average farm size in India today is
Limited access to about 1.1 hectares. The small size of
quality seeds, Excessive layers
fertilizers, of middlemen each individual farm leads to farmers
pesticides having little or no bargaining power,
and middlemen are able to take
Small land
Lack of useful advantage of the gap and charge high
data for banks to
holdings CHALLENGES rely on commissions – both on the supplier as
IDENTIFIED well as buyer side
Limited market for Low scale of There is no exchange of information
information and production per
knowledge individual farmer
between farmers, and information
from external sources is scarce. This
leads to poor crop selection and
inefficient use of resources
 BUSINESS PLAN

Connecting Data Collection Combining Services Feedback Loop

Aggregation
stakeholders The data we collect All FaaS services With a higher
Aggregate farmers with
Connect farmer co- through our platform (including equipment bargaining power,
small holdings through
operatives with can also be used by rental, soil testing, etc.) farmers can negotiate
a virtual platform to
suppliers for timely banks to alleviate risk can be linked to a single better prices and make
create larger farmer co-
procurement of and manage credit platform with the good on their loans,
operative, thereby
fertilizers, seeds and scores of loan farmer as the end thereby improving their
increasing their
pesticides at market- applicants customer credit worthiness
bargaining power.
determined prices
 Since it provides quick
access to the farmer

COMPETITIVE LANDSCAPE community, aggregation is

the most prevalent GTM
strategy for agri-tech cos.

 Connects farmer with retailers; mainly into fruits and vegetables;

 Has more than 20k farmers on board; raised $150+ mn in multiple VC rounds.
However, most of them are
 Primarily an NBFC operating in the agri space; main revenue is from lending; into fruits and vegetables
 Provides market linkages for inputs and produces; raised $ 90+ mn till date. only. We would like to foray
 Employs ML to connect farmers to HoReCa; platform for fruits and into pulses and spices as
vegetables; well to be a one-stop output
 Currently operational in MH; likely to grow presence in Western India only. market link for farmers.
 A modern marketplace connecting farmers with global agri traders;
 Provides quality testing, warehousing, crop analytics, credit services as well.
 Connects farmers with institutional buyers; mainly into fruits and Once we are able to build a
vegetables; sizeable network of farmers,
 Invested in setting up own warehouses and cold storage facilities; $ 30+ mn. we will then spread into
aggregation of other
 Marketplace for all products one can find in kirana stores;
services such as equipment
 Main idea is to serve mom-and-pop stores and modernise general trade.
rental, soil testing, inputs,
etc.
 Requirement

FINANCIAL PROJECTIONS Rs

Particulars Q1 Q2 Q3 Q4 Q5 Q6
Revenue (Rs mn)
Personnel cost (Rs mn)
Cash PAT (Rs mn)
GMV transacted (Rs mn)
# of farmers in network
Capex (Rs mn)
Head count

Assumptions
 Commission% for each transaction has been considered at 5% - this will be earned from both the transacting parties;
 Subscription revenue from farmers and buyers has been kept at Rs 2,000 and Rs. 8,000 per annum, respectively;
 Average CTC per annum for corporate office employees is Rs 6 lakh and for field employees it is Rs 2 lakh;
 Fixed expenses as a % of revenue are expected to decline as the business scales up.