New Delhi: Food-agri start-up Fresh From Farm has raised over Rs 3.2 crore in seed round led by Inflection Point Ventures, the company said in a press release on Thursday.
It is a demand- and data-based aggregation ecosystem that recognizes retailer demand trends and buys the precise amount from farmers. Growing and acquiring fresh produce, the startup distributes it through an omnichannel online and physical presence.
The company said funds raised will be used in team building, inventory management, capital expenditure, research & development and branding.
The startup sells its products under its private label Happy Froot and aims to alter the dynamics of fruit and vegetable production through a targeted, data-driven predictive analysis, resulting in less food waste and better nutrition for all. To reduce waste at the retailer level, the company said it assesses demand and supply patterns and works towards matching them.
The total combined size of fruit and vegetable market over the next 15 years is USD 500 billion. The startup has access to more than 1000 sales touchpoints for 30 times growth in the next 12-15 months. The company can save up to USD 14-16 billion fruits & vegetables annually. Delhi/NCR alone consumed Rs 22,000 cr worth of fruits & vegetables in 2021.
The company said it can provide fresh food to the entire Delhi/NCR region in just two hours as they have built a 6000 square feet collecting and distribution hub in South Delhi.
Rohit Nagdewani, founder and CEO of the company said, “Our AI based system currently has a confidence rate of 89 percent allowing us to predict the exact quantities and qualities of fruits that can be sold at particular touchpoints. This has enabled us to reduce the wastage to 2-3 percent while the industry standard is 20-22 percent. We aim to achieve a 95 percent accuracy rate over the next 18 months.”
India is the second-largest producer in the world, producing about 300 million metric tonnes (MT) of fruits and vegetables each year, 40 percent of which is lost due to supply and demand imbalances, lengthy distribution chains, and inadequate infrastructure, among other issues. The market is big and highly unorganized, where the margins on fruit and vegetable sales exceed $12 billion.
The startup said it earned Rs 78 lakh in FY22 and is working to improve its fruits and vegetables trade margin.