Crofarm Agriproducts Pvt Ltd, which operates ventures including social commerce-focussed Otipy, has raised $1 million (Rs 7.41 crore) as the final part of its pre-Series A round.
The Gurugram-based startup has raised this capital from angel investment platform Inflection Point (IP) Ventures. In June, it raised another $1 million from Smile Group, which owns and operates various properties in the consumer and internet media space.
Crofarm was founded in May 2016 by former Grofers executives Varun Khurana and Prashant Jain.
Otipy – which operates on a business-to-business-to-consumer (B2B2C) model – primarily aims to help women resellers connect with farmers and market fresh produce in their community.
Crofarm says the venture already has more than 1,000 resellers serving more than one lakh consumers.
The company will use the funds to enhance its technological infrastructure, as well as expand its reseller base in Delhi and the larger National Capital Region. It has recently launched its services in Noida, Greater Noida, and Ghaziabad.
“Not only does it eliminate the challenge of fair pricing for farmers, but also ensures delivery of fresh produce to end-consumers,” IP Ventures founder and chief executive officer Vinay Bansal said.
Crofarm started by selling fruit and vegetables directly sourced from farmers. The startup supplies fruit and vegetables to over 5,000-plus retailers through its B2B arm.
The produce is sourced from farmers across Haryana, Uttar Pradesh, Delhi, Gujarat, Himachal Pradesh, Karnataka, Rajasthan and Maharashtra.
The agritech startup had raised $500,000 (Rs 3.5 crore) from a group of high net-worth individuals in January last year in a bridge round.
This investment is the latest by IP Ventures, which was founded in 2017 as a by-invitation-only network. The initiative makes most of its bets at early-stage to pre-Series A stages.
Earlier this month, the firm invested an undisclosed sum in Eden Smart Homes LLP, which operates an IoT-based startup focussed on home automation solutions. Last month, it invested $200,000 (around Rs 1.5 crore) in Wellcure Infotech Pvt Ltd, a health-technology platform founded by Nearbuy co-founder Sumeet Kapur.
It does make some bets beyond the pre-Series A stage as well. In June, for example, it led a $5.5 million (around Rs 42 crore) funding round in hyperlocal grocery delivery startup Milkbasket.
Also in June, IP Ventures invested in citizen’s safety-technology platform DROR along with US-based entrepreneur and investor Gopi Latpate.
