Patna based start-up Ergos has raised INR 22.5 crore from UK based CDC group, an international development department to close the Series A deal at INR 81 Cr.
The Agritech startup was founded by Kishor Jha, Priyanka Kumari and Praveen Kumar, entrepreneurs from Bihar, in 2012. Ergos is a tech-based solution provider for farmers end-to-end post-harvest supply chain. This enables marginalised farmers to have a choice on when, how much quantity and at what price they want to sell their produce, thus maximising their income.
Ergos has created a Grain bank model which is being piloted in Bihar. This technology-based grain bank enables farmers to convert their grains into digital assets, avail credits on their produce and secure better prices through market links from the platform.
In order to use the platform, farmers need to register on the app and book space in the GrainBank for storage. Further, grains are inspected for quality at the warehouse and deposited into the GrainBank. The information is then digitised making the grain bags fungible. Farmers can sell a single unit of grains in just one click and avail credit against their stored grains.
The agritech start up claims to have got over forty-one thousand farmers registered on its platform, 134 crore direct payments done to the farmers and 1.92 million number of bags digitised as of 31st December 2020.
“The company is working on an expansion plan to set up at least 500-600 GrainBanks across Bihar and other conjugated states but primarily will remain focused on Bihar market only which is close to $ 12 Bn market for the commodity they manage i.e., wheat, maize and paddy. This expansion will enable them to manage close to 1000-1200 crore worth of farmers grain and to service close to 100 thousand farmers,” founder and CEO Kishor Jha shared this information with website Inc42.
As they are already operating in 14 districts, they further plan to penetrate with one GrainBank at every panchayat level, adds Jha to Inc42.
This deal also saw support from the company’s existing investors Aavishkaar Capital and Chiratae Ventures.