Merak Ventures, a sector-agnostic early-stage venture capital firm, has revealed its second investment of USD 1.45 million (Approx INR 12 crores) in Farmtheory.
This funding will empower Farmtheory to scale its operations, particularly by expanding its supply arm, upgrading its technological infrastructure, and strengthening its supply chain by connecting with more farmers, ensuring a robust and sustainable source of produce.
Y-Combinator-backed startup, Farmtheory, driven by the goal of improving farmer incomes, tackling food loss, and combating climate change, intends to redirect edible produce to new markets instead of letting it go to waste.
Arpit Agarwal, Co-founder of Farmtheory, said, “Farmtheory embodies a vision where every connection between farmer and consumer signifies more than just a transaction-it represents a commitment to enriching lives and fostering sustainability. Through our platform, we empower farmers to share their harvests with the world, creating meaningful connections that sustain communities and promote environmental responsibility.”
Arpit Agarwal and Sakshi Agarwal established Farmtheory in 2019. The startup focuses on reducing food waste at its origin, increasing farm yields, and providing high-quality ingredients to commercial kitchens.
Farmtheory states that since its inception, it has served over 1500 kitchens and has partnered with 3000 farmers.
This Bengaluru-based B2B agri-food startup directly acquires nutritious, ‘freeform’ produce from farmers and distributes it to various buyers, including cloud kitchens, catering companies, food processors, and restaurants.
Sheetal Bahl, Partner at Merak Ventures, remarked, “At Merak Ventures, we recognize the brilliance and audacity of Farmtheory’s team. Not only are they addressing the challenges of food waste, farmer income, and climate change — they’re reimagining solutions with the potential to transform the agri-food landscape. By coining the term ‘freeform produce’ to describe crops that are irregularly shaped or sized, Farmtheory is reframing the narrative from ‘ugly produce’ to appreciating the value of these untapped crops. Their leadership in India’s ‘freeform produce’ movement, proven successful in developed markets as the ‘ugly produce movement’, demonstrates a game-changing approach, echoing our own ethos of investing in ventures that promise not only returns but contribute towards a sustainable future.”
