Agritech Startup Ergos Raises $10 Million, Led by Abler Nordic to Revolutionise Indian Agriculture
Ergos, an Indian agritech startup, raises $10 million to digitize grain storage, link farmers to markets, and provide affordable credit
In a major financial boost to Indian agriculture, Bengaluru-based agritech startuphas secured $10 million in funding. The round was spearheaded by Norway's Abler Nordic and saw participation from existing investors such as Aavishkaar Capital, Chiratae Ventures, and Trifecta Venture Debt Fund. This infusion of capital comes at a time when the Indian farming community is in dire need of sustainable and technologically advanced solutions.
Ergos aims to transform the agricultural landscape by digitising grain storage, effectively turning grains into tradable digital assets. This allows farmers to sell their produce at opportune moments, rather than immediately post-harvest, thereby maximising their profit margins. The startup also provides a platform for farmers to connect directly with buyers, bypassing layers of middlemen and ensuring fair pricing.
Empowering Farmers at the Farmgate
Founder and CEO of Ergos, Kishor Jha, articulated the need for revitalising the farming sector, stating, "There is a pressing need to revitalise agriculture by empowering farmers and catering to their needs at the farmgate." Ergos does exactly that through its 'Grainbank' platform. With secure storage options for grains, the platform grants farmers an eight to nine-month buffer after harvest, during which they can decide on the optimal time to sell their produce.
Furthermore, the startup extends financial support by facilitating affordable credit options through partner banks. Farmers can access credit for up to 70% of their stored, digitised grain at amenable interest rates, offering a significant lifeline to those strapped for cash.
Addressing Food Security and Climate Resilience
Abler Nordic, the Norwegian investment firm leading the funding round, emphasises the climate resilience aspect of Ergos’ model. Arthur Sletteberg, Managing Director of Abler Nordic, said, “Our investment in Ergos demonstrates Abler Nordic’s approach of investing in a wide range of innovative, inclusive solutions that help build financial and climate resilience.” The lack of quality storage options often leads to spoilage, affecting both the farmers' income and the broader issue of food security.
A Growing Network
Currently, Ergos claims to support more than 160,000 farmers through its platform, with a physical network of farm-gate-based warehouses, known as Grainbank, in over 200 locations. This expansive network illustrates the scalability and effectiveness of Ergos’ model, and the recent funding will likely catapult it into its next phase of development.
As the agritech sector continues to evolve, startups like Ergos are spearheading the movement towards a more sustainable, profitable, and resilient agricultural future for India.