Agritech startup Fasal, which is backed by investors such as Omnivore, 3one4 Capital, TDK Ventures, and British International Investment, is hiving off its fresh produce distribution business to Swiss-Indian food-tech firm Innoterra.
Innoterra, which sells fruits via its Farmlink platform, said it plans to expand its operations in Bengaluru and Chandigarh. By leveraging Fasal’s farmer network that spans over 85,000 acres, Innoterra seeks to supply premium-quality, traceable fresh produce to more locations, it said in a statement.
Fasal, a precision agriculture and digital farming company, has a network across major horticultural clusters—including grapes, pomegranates, apples, guavas, and bananas.
Innoterra’s India head of business and MD, Avinash Kasinathan, told VCCircle that the company is optimistic of seeing Rs 80 crore in revenue in FY25 from the fresh fruits business, and that this could double in the next two-three years.
He added the company gets half of its from India, primarily from the branded fresh fruit and dairy business.
The company has plans to eventually expand to rice and spices. At present, both categories are part of the international business, and only constitute exports from India.
The integration of Fasal’s IoT-driven farm management model will enable Innoterra to help farmers with precision agriculture practices and resource optimization such as efficient water usage, fertilizer and pesticide application, pest and disease management, and overall reduction in cultivation costs through data-driven recommendations.
It will also enable long-term cost advantages by strengthening Innoterra’s direct farm sourcing, and centralized procurement planning across multiple cities, said a press release.
Kasinathan said: “By tapping into Fasal’s strong farmer network, particularly in bananas and pomegranates, we are strengthening our capabilities in key regions and expecting up to 80% increase in our fruit distribution.”
Fasal will continue focusing on its original business, which is providing IoT-enabled solutions to farmers. Shailendra Tiwari, co-founder and CEO of Fasal, said: “This transition allows us to sharpen our focus on precision agriculture, driving smarter and more sustainable farming solutions.”
Besides India, Innoterra has operations in the Middle East, the Philippines, and China. It has fulfilment centres in Bengaluru and Delhi, and plans to open such centres in Chandigarh and Lucknow, Kashinathan told VCCircle.
