B2B agritech startup Growcoms has raised $3.5 Mn in a funding round from JSW Ventures and Arali Ventures, along with participation from existing investor InfoEdge Ventures.
The spices-focussed agritech startup said it will use the fresh funds to bolster its product portfolio and technology stack to build key capabilities in enabling traceability for exports and value-added spices.
Founded in 2021 by George Kurian, Bibin Mathews, and Narendranath P, Kochi-based Growcom sells whole spices, powders, oils and oleoresins, and seasonings to enterprise clients through its digital platform. The startup procures spices from farmers and has partnerships with processors. It claims to provide traceable spices to its clients using blockchain technology.
The startup, incubated by Indigram Labs, counts food companies, flavour houses, FMCG companies and seasoning brands among its clients.
Commenting on the fundraise, Growcoms cofounder and CEO Kurian said, “The investment and partnership with like-minded investors will surely help Growcoms strengthen its global presence and enhance efficiencies throughout the value chain.”
With sourcing hubs across major spices-producing regions, vetted suppliers, and increased global demand, Growcom has expanded the scale and scope of its operations globally during the last two years, the startup said in a statement.
Commenting on the investment, Sachin Tagra, managing partner at JSW Ventures, said, “Growcoms’ full stack approach to manage the entire spices value chain with a tech led intervention can create value for all stakeholders. This organisation of the industry will also directly lead to an increase in realisations at the farmer level. This investment will further enhance Growcoms’ capability to capitalise on the spice’s opportunity with traceability solutions at the forefront of this business.”
JSW Ventures, an early-stage institutional venture capital fund backed by the family office of the JSW Group, invests in technology-led startups at pre-Series A to Series A stages. JSW Ventures counts the likes of Purplle, HomeLane, Cureskin, and Zvolv in its portfolio.
The investment marks the venture capitalist firm’s foray into the agritech space.
India’s agriculture sector continues to be plagued by low productivity because of the use of old technologies. As such, it has emerged as an attractive proposition for agritech startups that are using technology to improve the yields and income of farmers by connecting them with enterprise clients. This has also grabbed investors’ attention.
Recently, full-stack agritech startup Leads Connect raised INR 500 Cr ($62.5 Mn) from FMCG major BL Agro Industries. Another agritech startup Ergos raised $10 Mn in its Series B funding round in September 2023.
Growcoms’ funding comes at a time when the government is looking to explore new markets, strengthen existing ones, and focus on value-added products to increase the exports of spices from $4 Bn currently to $10 Bn by 2030. India is the world’s largest producer of spices and holds a 70% share in global spice production.
The global spices and seasonings market size is expected to grow at a CAGR of 5.7% and reach $35.1 Bn by 2028, as per a report by IMARC Group.
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