SUMMARY
The startup will use the fresh funding to ramp up its operations, expand its footprint, shore up its tech stack, diversify product portfolio and double its network of partners
Backed by names such as AgFunder, Omnivore and Rebright Partners, Chennai-based Aquaconnect claims to have scaled up its revenues by 4X in the last fiscal year
Founded by Rajmanohar Somasundaram, Aquaconnect is a full-stack aquaculture platform that operates last-mile touchpoints and even offers credit services to its retail partners
Chennai-based full-stack aquaculture startup Aquaconnect has raised $4 Mn (INR 33 Cr) as part of a Pre-Series B funding round led by US-based S2G Ventures.
The startup will use the fresh funding to ramp up its operations and expand its footprint across the country. The capital will also be deployed to shore up its tech stack, diversify product portfolio, venture into new segments and double its network of partners in the next six months.
“The investment from S2G reinforces our mission of transforming the Indian aquaculture landscape through a phygital approach. The funds come at a critical juncture as we gear up for our next phase of growth to capture new opportunities, with an intense focus on expanding our operations in major markets,” said Aquaconnect founder and chief executive officer (CEO) Rajmanohar Somasundaram.
Commenting on the fundraise, managing director at S2G Ventures Kate Danaher added, “As a leading organisation in the second largest aquaculture market in the world, we believe Aquaconnect is ideally positioned to capture meaningful market share and contribute to a future of sustainable growth across the sector.”
Founded in 2017 by Somasundaram, Aquaconnect is a full-stack aquaculture platform that leverages AI and remote sensing data to predict demand for farm inputs and the supply of harvest produce.
Cashing in on this data, it operates offline last-mile touchpoints that connect aqua farmers with farm input brands. It also partners NBFCs to offer formal credit services to its retail partners and seafood buyers to address working capital needs.
Aquaconnect claims to be present in six states and have more than 500+ on-ground partners. It also claims to serve more than 30 brands and have scaled up its revenues by 4X in the last fiscal year.
This comes more than a year after the startup last raised $15 Mn as part of a Series A funding round led by Lok Capital in December 2022. Prior to that, it also secured $8 Mn in venture debt from Trifecta Capital in early 2022.
The startup is also backed by names such as Louis Dreyfus Company Ventures, Suneight Investments, AgFunder, Omnivore, Rebright Partners, among others.
It competes with the likes of names such as AquaExchange, Captain Fresh, Eruvaka, among others.
Curiously, the development comes just days after AquaExchange secured $6 Mn in its Series A funding round led by London-based PE firm Ocean 14.
India’s aquaculture market continues to be a largely unorganised space that is populated by local players. But as exports and domestic consumer demand for seafood rise, Indian aquaculture startups are looking to tap into technology to streamline procurement of feed and predict market trends.
As per a report, India’s aquaculture industry is projected to grow to a market size of $29.37 Bn by 2028.
