[Funding alert] Patna-based agritech startup DeHaat raises debt capital of Rs 20 Cr from Trifecta Capital
After raising $4 million equity funding led by Omnivore and AgFunder, DeHaat now raised Rs 20 crore debt funding by Trifecta Capital. The startup will use the funds to pilot financial services like credit and insurance for existing farmers on the platform.
The Patna and Gurugram-based agritech startup DeHaat is raising venture debt of Rs 20 crore from Trifecta Capital. In a statement, the company said the funds will be drawn over the next 12 months. The capital will primarily be used to pilot financial services like credit and insurances for farmers using the DeHaat platform.
DeHaat is an online platform that connects small farmers with a network of microentrepreneurs – suppliers of various farm input and equipment – who procure various inputs such as seeds, fertilisers, and even equipment, as well as offer crop advisory and market linkages.
The platform had raised $4 million in equity by Omnivore and AgFunder in March. It was founded in 2012 by IIT Delhi alumnus Shashank Kumar and IIT Kharagpur alumnus Manish Kumar. Manish exited the startup in 2015. In the past three months, DeHaat claims to have onboarded 50,000 new farmers across Bihar and UP to reach a milestone of 100,000 farmers on the platform.
Speaking of the funding Shashank Kumar, Co-Founder and CEO of DeHaat, said,
“Our larger goal is to become a one-stop destination for Indian farmers, which can meet all of their agricultural needs. Trifecta Capital has experience investing in agritech startups and likewise brings deep relationships with financial institutions and agribusiness corporates that DeHaat can leverage to accelerate our growth.”
The platform has over 520 different agricultural inputs listed, and has partnered with the likes of UPL Ltd, IDBI Bank, IFFCO, DuPont, Pepsico, Bayer Ag and Yara International. There are also more than 100 institutional buyers associated with it to facilitate procurement of agricultural produce directly from farmer.
Currently, DeHaat focuses on three major services – agricultural input, crop advisory and market linkage for farm produce. Farmers can place orders through the DeHaat helpline, the mobile app, or a physical centre. Orders are then sent forward to DeHaat’s micro entrepreneurs, and fulfilled the same day. Each DeHaat microentrepreneur caters to 600-800 farmers in a radius of 3-5 km
Rahul Khanna, Co-Founder and Managing Partner of Trifecta Capital, said,
“DeHaat is one of the most capital efficient startups we have ever come across. They have a strong hold on unit economics and an amazing proposition for farmers as well as other value chain players. We have made a significant investment commitment to DeHaat and are excited to be a part of their growth.”
As of March, DeHaat had claimed to have clocked a revenue of Rs 45 crore. It closed the last fiscal with a revenue of Rs 21 crore and was positive on the earnings before interest, tax, depreciation and amortisation (EBITDA) level.