Innoterra Acquires Agritech Fasal’s Fresh Food Distribution Biz

SUMMARY

The acquisition will enable Innoterra’s B2B ecommerce platform Farmlink to boost supply chain, expand its distribution footprint and diversify into non-perishable goods space

There was no clarity on the financial contours of the deal

Founded in 2018, Fasal leverages its proprietary AI and IoT stack to help farmers achieve better productivity and yields

Homegrown agritech platform Fasal’s fresh food distribution business has been acquired by Swiss-Indian agritech platform Innoterra for an undisclosed amount.

The acquisition will enable Innoterra’s B2B ecommerce platform Farmlink to boost supply chain and expand its distribution footprint across the country, especially in cities such as Bengaluru and Chandigarh.

The development was first reported by The Hindu businessline.

The deal will also enable Innoterra to leverage Fasal’s network of 85,000 horticulture farmers, spanning clusters such as grapes, pomegranates, apples, guavas, and bananas. The move will also help Innoterra diversify into the non-perishable goods segment (such as rice and spices) as well as bolster its top line and customer base.

Inc42 has reached out to Fasal for comments on the development. The story will be updated on receiving the company’s response.

Founded in 2020, Innoterra is a food technology platform which operates a marketplace that connects farmers’ produce with retailers. It also collaborates with farmers to train them in sustainable farming practices for better yields.

Meanwhile, Innoterra’s B2B ecommerce platform Farmlink has two verticals – while fresh food distribution vertical DistriCo offers last mile distribution of agri-products, MilkLane sells fresh milk to large dairies.

On the other hand, Fasal, founded by Shailendra Tiwari and Ananda Verma in 2018, leverages its proprietary artificial intelligence (AI) and Internet of Things (IoT) stack to help farmers achieve better productivity and yields. It also generates revenue by selling agricultural goods.

Fasal counts Reliance, Mahindra and ITC as part of its corporate customers and is backed by the likes of British International Investment, Omnivore and 3One4 Capital among others.

On the financial front, Bengaluru-based Fasal reported an 89% surge in its revenue from operations to INR 34.1 Cr in the financial year 2023-24 (FY24) from INR 18 Cr in the year ago fiscal. However, the startup’s net losses marginally increased by 6% to INR 34 Cr for the period under review from INR 32 Cr in FY23.