SUMMARY
Freshly raised funds will be utilised by Stellapps to develop advanced technologies to transform the agri supply chain
Stellapps is committed to developing a gender strategy to promote female leadership through the first equity investment by IDH FarmFit Fund in India
It currently digitises over 13 Mn liters of milk worth $3.4 Mn each day and directly impacts 2.8 Mn dairy farmers in over 35,000 Indian villages across 15 states
Bengaluru-based dairytech startup Stellapps has raised an undisclosed amount from IDH FarmFit, which is the funds’ first equity investment in India.
Following this investment, the dairy startup and IDH Farmfit Fund have entered into a first-of-its-kind partnership, said a statement.
India’s increasing milk demand along with the huge untapped potential for milk production drives Stellapps’ growth. And the startup aims to fulfil its objective with its tech-first, platform-based dairy supply chain services.
The startup is an IIT-Madras incubated company, founded by a group of IITians and technologists. Since its inception in 2011, this dairytech startup aims to raise farmer net income by improving productivity in the value chain, enhancing milk quality, and enabling trackability.
It said it is making a digital highway and access network to enable the delivery of value-added services such as credit, insurance, extension, agri-inputs, etc.
Ranjith Mukundan, chief executive officer at Stellapps, said, “We are immensely happy to welcome IDH FarmFit Fund as an investor. The investment will contribute towards building out our vision of creating a digital ecosystem that enables smallholder farmers to become entrepreneurs. This involves enabling easy and timely access to extension services, quality cattle nutrition, financial services, market linkage. We look forward to learning from the rich experience of IDH FarmFit Fund to drive a significant impact in the Indian Agri sector.”
The startup said, through its customer base which includes all major private and cooperative dairies, Stellapps currently digitises over 13 Mn liters of milk worth $3.4 Mn each day and directly impacts 2.8 Mn dairy farmers in over 35,000 Indian villages across 15 states.
Varishna Tewarie, the IDH Farmfit Fund’s investment manager for Asia, said, “We are delighted to support Stellapps with this new investment, which will improve farmer income and positively impact their lives. We shall witness the transformation of one of India’s most crucial agricultural sectors. The company supports smallholder Indian farmers by increasing transparency, improving farming practices, and enabling financial inclusion.”
It is commonly known that the Indian economy is majorly dependent on agriculture and here, the scope of agri-business is immense. As per the startup, dairy is the economy’s aorta, since it employs more than 40% of the agri-workforce and contributes the greatest percentage to its agricultural GDP.
Coming to the dairy sector of the country, which is the largest in the world, contributes 22% of global milk production. The Indian dairy and livestock sector is a $ 225 Bn industry and contributes to 7.6% of India’s GDP.
Just last year in September, Stellapps raised INR 67 Cr in a follow-up round of its earlier raised Series B round.
