Nutrifresh Farms: Leading Agritech Innovation in Hydroponics

Nutrifresh Farms, a prominent agritech startup, has showcased remarkable performance in FY25, approaching Rs 150 crore in operating revenue and achieving a 50% growth year-on-year. Notably, the company based in Pune also experienced a 55% increase in profits for the fiscal year ending March 2025.

In its consolidated financial statements submitted to the Registrar of Companies (RoC), Nutrifresh Farms reported a 50% year-on-year increase in operating revenue, reaching Rs 145.22 crore in FY25 compared to Rs 96.82 crore in FY24. Established in 2019, Nutrifresh Farms employs hydroponic technology to cultivate pesticide-free fruits and vegetables within climate-controlled environments.

Business Model and Clientele

Primarily utilising a B2B model, Nutrifresh supplies fresh produce to notable clients including Zepto, Swiggy Instamart, Blinkit, McDonald’s, and Spar, while also providing customised salads through subscription services. The revenue from the sale of fresh produce and salads constituted the only source of operating income for the company.

In addition, Nutrifresh Farms earned Rs 4.55 crore in interest from deposits, bringing the total income to Rs 149.77 crore for the previous fiscal year.

Expense Overview

Material procurement comprised 72% of total expenses, which amounted to Rs 96.12 crore. This expense saw an increase of over 70% in FY25 from Rs 56 crore in the preceding fiscal year. Employee benefit expenses also rose by 70%, reaching Rs 10.96 crore, while depreciation and amortisation expenses totalled Rs 10.4 crore.

Several factors, including finance costs, rent, transportation expenses, and other overheads, contributed to the overall expenses, which totalled Rs 134.25 crore in FY25, reflecting a 48% increase.

Profitability Growth

The 50% increase in operating scale facilitated a 55% rise in operating profit for Nutrifresh Farms, which grew to Rs 13.86 crore in FY25 from Rs 8.94 crore in FY24. The firm’s EBITDA margin and ROCE improved significantly to 17.31% and 5.6%, respectively. On a unit level, the company spent Rs 0.92 to generate each rupee of operating revenue in the last fiscal year.

Funding and Future Outlook

According to startup data intelligence platforms, Nutrifresh Farms has secured approximately $20 million across two funding rounds, including a seed round of $5 million in May 2022. This is a firm that many aspiring entrepreneurs will closely monitor, as building a business around hydroponics farming presents significant opportunities in India. As costs decrease, the market is likely to expand, creating larger possibilities, and Nutrifresh has successfully turned profits at its current scale.

By concentrating on B2B sectors, Nutrifresh has managed to minimise hefty marketing costs thus far, although this strategy may need reevaluation as the company scales. Addressing major challenges such as wastage and spoilage, which result in higher end prices, will also be crucial for aligning with global standards and ensuring quality delivery.

Will Nutrifresh be the trailblazer in this field? Only time will tell, as aiming for high growth comes with inherent risks. The Nutrifresh team is likely cautious about making significant gambles for expansion at this stage. As the founders progress from Seed round to subsequent phases, they will face the tough decision of either securing steady gains for themselves and their investors or risking it all for exponential growth.