Agritech startup Ergos announced on Friday that it has raised $10 million in a funding round headed by Norway’s Abler Nordic, with participation from existing investors Aavishkaar Capital, Chiratae Ventures, and Trifecta Venture Debt Fund. The funds were raised via a combination of equity and debt.
Bengaluru-based Ergos digitizes grain storage, helping farmers convert their grains into tradable digital assets and maximizing their profits from selling their produce. It provides safe grain storage in warehouses, access to affordable finance through partner lenders, and a buyer’s platform connecting farmers to markets.
“There is a pressing need to revitalise agriculture by empowering farmers and catering to their needs at the farmgate. Ergos’ Grainbank platform enables farmers to take optimal decisions on sales/storage of their produce, access credit from banks as well as get access to competitive prices through planned liquidations,” said Kishor Jha, founder and chief executive of Ergos.
After the harvest, Ergos provides farmers access to storage services for eight to nine months. Farmers can then use a digital process to receive credit from banking partners at affordable interest rates for up to 70% of their digitally stored grain.
According to Ergos, it currently supports over 160,000 farmers on its platform and has a physical network of farm-gate warehouses with the Grainbank brand in over 200 locations.
“Our Investment in Ergos demonstrates Abler Nordic’s approach of investing in a wide range of innovative, inclusive solutions that help build financial and climate resilience. Ergos is helping solve the problem that many farmers in India increasingly face — produce spoiling due to lack of access to quality storage, affecting both the farmers’ income and general food security,” said Arthur Sletteberg, managing director of Abler Nordic.