SUMMARY
The funding round was led by Dare Ventures, with participation from existing investors Caspian and Hivos-Triodos Fonds through equity
The startup will use the funding to expand its footprint beyond India and to bolster its product range
Ecozen predominantly offers irrigation and cold storage products that enable farmers to increase yield and store their produce longer
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Agriculture-focused deeptech startup Ecozen has raised the first tranche of INR 54 Cr in debt and equity as part of its planned INR 200 Cr Series C fundraise.
The round was led by Dare Ventures, with participation from existing investors Caspian and Hivos-Triodos Fonds for equity funding. On the other hand, investors such as Northern Arc, UC Inclusive Credit, Maanaveeya, and Samunnati participated in debt funding.
The startup will use the funds to expand its footprint beyond India and to bolster its product range.
“The new funding will be used for expanding our product range, manufacturing capacity and boosting exports. Expanding beyond India and beyond agriculture will enable us to expand our market potential multifold and grow exponentially while ensuring sustainability,” Ecozen chief executive officer (CEO) and cofounder Devendra Gupta said.
Founded in 2010 by IIT Kharagpur alumni Gupta, Prateek Singhal and Vivek Pandey, Ecozen predominantly offers irrigation and cold storage products that enable farmers to increase yield and store their produce longer. It also deploys data analytics and internet of things (IoT) platform to remotely analyse crop health and provide insights.
The startup had last raised $6 Mn as part of a funding round led by IFA in December 2019. Prior to the latest fundraise, it had raised $8.7 Mn in funding since its inception.
The startup claims that its products are used by more than 1 Lakh farmers, and its 4,50 cold storage units have been deployed across the country.
Ecozen crossed INR 100 Cr in revenue in the financial year 2021-22 (FY22), while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) was positive during the year, the startup said in a statement.
Ecozen said it plans to double its sales in FY23, and that it has executed successful pilots abroad and has been able to spur strong demand in Africa and Southeast Asia.
According to Inc42, India’s deeptech startups have raised more than $800 Mn in investments since 2014.
Earlier this month, the Maharashtra government announced setting up of an INR 200 Cr women-focussed fund to invest in early-stage deeptech startups. In May, software giant Zoho invested INR 20 Cr in deeptech startup Genrobotics.
Bengaluru-based deeptech platform DaveAI raised a strategic round of funding led by Maruti Suzuki India in May. In April, Spyne bagged $7 Mn funding from Accel, Storm Ventures and others, while Bosch acquired a 14% stake in Zeliot Connected Services in the same month.
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