FarMart: B2B Food Supply Startup Secures Funding

FarMart, a leading B2B food supply startup, is nearing a deal to obtain up to $40 million in a new funding round from both current and new investors, as indicated by two knowledgeable sources. According to one insider, discussions for this funding round have been ongoing for some time, and although initial conversations aimed for a larger amount, the deal is now close to finalising between $35 million and $40 million.

Funding Details and Investors

Sources reveal that Impact Fund Denmark and Greater Pacific are expected to spearhead this investment round, with participation from established investors such as General Catalyst and Matrix Partners. Earlier in April, FarMart successfully raised $10 million through a combination of debt and equity, as exclusively reported by Startup Superb based on information from the Registrar of Companies.

Potential Changes in Deal Terms

It is important to note that the terms of the funding deal may undergo changes at the last minute. Queries directed to FarMart’s CEO, Alekh Sanghera, on Monday have not received a response despite multiple attempts.

Agritech Landscape Overview

The agritech sector has seen diminished appeal following the 2021–22 boom; however, a series of new funding events and consolidation activities across various companies have sparked a renewed sense of optimism. For context, total agritech funding fell by 78% in 2023, amounting to $178 million. A rebound of nearly 30% occurred in 2024, yet this momentum did not persist, with funding declining again by 58% in the first half of 2025.

FarMart’s Business Model

FarMart’s B2B platform digitises the agricultural supply chain, facilitating connections between nearby buyers and sellers. This innovation assists in minimising logistics costs related to long-distance transportation. The company has established a robust retail network in central and northern India, although its presence in the southern regions and Jammu & Kashmir remains somewhat limited.

Funding History and Revenue Growth

To date, FarMart has successfully raised over $60 million, which includes a $32 million Series B funding round led by General Catalyst, alongside participation from existing investors Z47 and Omidyar Network India. According to data from a startup intelligence platform, the company’s operating revenue surged by 30% year-on-year to INR 1,341 crore in FY24, although it reported a net loss of INR 68 crore during the same fiscal year. Notable shareholders include General Catalyst, Z47, and ON Mauritius.

Competitive Landscape

FarMart is in direct competition with several players in the agri-supply market, including Gramophone (now merged with Unnati), Agrim (backed by Kalaari), and Krishify, among others.