Aavishkaar Capital, the venture capital arm of Aavishkaar Group has invested $5 million in a Series A funding round in Ergos, a Bengaluru based agri-tech startup. The Series A funding round was expected to be ₹100 crores with Aavishkaar Capital and a technology venture capital fund set to join the round. In 2015, Aavishkaar capital had invested in Ergos at the ideation stage and worked with promoters in scaling the model.
Founded in 2012 by Kishor Jha and Praveen Kumar, Ergos has been building a GrainBank model that has been piloted in Bihar. Ergos is an agri-supply chain startup that provides door-to-door access to farmers at the end of the post-harvest supply chain. It also helps small & marginal farmer’s in India to digitise their food grain distribution and operates as a bank and facilitates storage, digitization, credit, and liquidation to farmers. As a result, farmers receive 25% -30% more income. Ergos is solving warehousing problems for farmers through its tech-enabled Grainbank.
Ergos will be using this funding to double farmer’s income and strengthen their Grainbank for the post-harvest needs of farmers. The model is used by more than 20K farmers and has a physical footprint across 60 locations. By 2025, the company intends to reach nearby states and offer its services more than 1 million farmers with over 2000 branch locations.
Ergos co-founder and CEO said, “With the right amount of investment and strong institutional backing, we have the ability to make the Prime Minister’s vision of doubling the farmer income come true in a much shorter span. Our focus is to build this GrainBank to serve post-harvest requirements of all farmers with a focus on small and marginal farmers”.
As we know, India’s agriculture sector is the largest employer in the country. As per the economic survey, 2017-18, the agricultural sector employs more than 50% of the total workforce in India and contributes about 17-18 percent of the country’s GDP. There is still a significant hurdle that requires attention to prosper economically and provide benefits to the bottom of the supply chain. Startups like Ergos will help the agricultural sector bolster its growth and overcome hurdles using technology by branding themselves as the saviour of the farming sector.