According to government data, agriculture in India supports over 42% of its population and contributes 18% to the country’s GDP. However, the market for agricultural inputs, such as seeds, pesticides, and tools, mostly relies on traditional channels like local offline marketplaces. The sector lacks a strong supply chain, especially in remote areas where most farmers are located.
Agrim is addressing these issues by creating a just-in-time supply chain that allows agri-input retailers to purchase directly from manufacturers. Co-founder Mukul Garg explained in an interview that the marketplace immediately sends orders to the manufacturer’s warehouse as soon as they are placed by a retailer.
Garg, along with co-founder Avi Jain, established Agrim in April 2020 to work with retailers and manufacturers unfamiliar with e-commerce. They provide a simple user interface, allow retailers to set prices, and have a custom order management system to match pickup and delivery times. The startup also collaborates with multiple logistics providers for efficient delivery.
Agrim currently offers products in four categories: seeds, agrochemicals, nutrition, and tools, with multiple subcategories under each. They use a pricing intelligence model to set prices based on demand and supply, taking a margin of 10% to 60-70% after negotiating with manufacturers.
The company also provides lending to retailers who struggle to access credit through traditional means, aiming to expand this service from 10% to 30% of retailers. With a recent funding round of $17.3 million, Agrim plans to expand its product catalog, reach new regions in India, and introduce new categories like animal feed and irrigation equipment.
In the near future, Agrim aims to offer private-label agri-inputs to help farmers access inputs at retail prices. The company claims to have a strong base of manufacturers, retailers, and farmers, with revenue of over $36 million in the last financial year.
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