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How Fresh From Farm Is Helping 500 Fruit Retailers Earn More

SUMMARY

Launched by Rohit Nagdewani, this supply chain startup streamlines fruit procurement, processing and deliveries to maximise product freshness and minimise waste

The full-stack platform caters to around 500 fresh marginal fresh fruit retailers in Delhi NCR and has introduced its private-label offerings to drive revenue

It has developed a five-pronged business strategy to blend quality, sustainability and innovation to redefine fruit distribution

Be it rain or shine, summer or winter, fresh marginal fruit retailers from the National Capital Region routinely scour wholesale mandis at the crack of dawn to procure their daily stock. But by the time it reaches retail markets, much of the stockpile is sold at a fraction of its original value due to massive waste. In fact, nearly 18% of India’s fruits and vegetables are wasted annually, costing the economy an estimated INR 13,300 Cr, per a 2023 research by IJCRT. The global scenario also remains a cause of concern, with 40-50% of root crops, fruits and vegetables wasted each year.

Plugging these gaps is far more complicated than it may seem at first. Consider this: India is the world’s second-largest producer of fruits and vegetables after China. And it harvested 112.62 Mn metric tonnes of fruits alone in FY24. Yet, nearly 69% of smallholder farmers lack access to cold storage facilities within a 10 km radius of their land, according to a survey by Sambodhi Research and the Transform Rural India Foundation (TRIF). Additionally, there is a complex maze of challenges, including poor handling, lack of temperature-controlled transportation and delay in distribution, which systematically degrades product quality.

However, Fresh From Farm (F3), a B2B2C platform set up by Rohit Nagdewani in 2021, is now changing the rules of the game. By streamlining procurement, sorting, grading and deliveries, the full-stack platform caters to 400-500 marginal fruit retailers every day across Delhi NCR, including large- and small-format stores and stationery hawkers (fixed-location vendors, unlike door-to-door fruit peddlers). At any given time, its stock-keeping unit basket offers more than 15 premium products, depending on the season.

The startup sources fruits directly from farmers and orchards across India, cutting out intermediaries to reduce transit time and product costs.

“Fruits arrive at our central processing unit in Chattarpur at around 4-5 in the afternoon and are on their way to vendors the next morning. Vendors can place orders through F3’s easy-to-use app at night and receive their deliveries between 7:30 and 8 am, pre-sorted, pre-graded and ready for sale. This just-in-time inventory system prevents stock from piling up and minimises the time fruits stay in storage,” said Nagdewani. 

The platform also uses temperature-controlled storage and transportation so that the produce remains as fresh as possible upon delivery. 

Fresh From Farm has opted for machine learning algorithms to analyse sales and other relevant data and forecast the quantities and fruit grades a vendor can sell within a fixed timeframe. This predictive demand analysis ensures retailers stock only what they need, avoiding over-purchasing and excess inventory. Unlike traditional wholesale markets, F3 does not enforce minimum order quantities (MOQs), allowing retailers to buy what they need and thus reducing unsold stock.  

“We don’t just provide a service. We are solving a critical issue in India’s fruit supply chain,” said Nagdewani. “By managing everything in-house, we have better control over quality, can bring down post-harvest losses and maintain a just-in-time inventory system. These solutions reduce food waste and enhance food quality and safety.”

As the startup simplifies the chaotic pre-sales processes, retailers can skip their tedious early-morning trips to the mandis, negotiations with multiple suppliers and the hassles of sorting. Instead, they can focus more on their customers, sales and business development.

“Our business model has been a game-changer for marginal fruit retailers, giving them 18-20% more earnings than the traditional method,” claims Nagdewani.

F3 aims to achieve INR 300 Cr over the next 15-18 months and has introduced its private-label offering to reach the target. It sells branded fruits across five categories – apples, blueberries, kiwis, watermelons and bananas – and claims that 15-20% of its revenue now comes from private labels. The startup has raised $2.5 Mn and is reportedly in talks to raise another round to fund its growth.   

Farm from fresh

From Automotive To Hydronics To Fresh Fruit Supply: An Evolving Journey

Nagdewani is a serial entrepreneur whose journey is full of twists and turns. He started as an automotive journalist but soon launched an ecommerce platform selling automotive accessories. The business became a top seller in major marketplaces like Amazon, Flipkart and ShopClues.

However, farming ultimately caught his interest. By 2017, he delved into hydroponics (growing plants in nutrient-rich water instead of soil), intrigued by its vast potential in urban farming. The experience initially exposed him to the challenges faced by farmers, from inconsistent demand to supply chain inefficiencies. During the Covid-19 pandemic, the idea for Fresh From Farm began to take root.

“We produced exotic herbs and vegetables at Farming V2, my hydroponics startup. Then, the pandemic struck and disrupted the traditional supply chain. So, I took it upon myself to deliver fresh greens to society stores, ensuring uninterrupted supply during a critical time. That was when customers frequently asked for fresh fruits, and I saw the gaps in the supply chain. This got me thinking, and I pivoted from Farming V2 to Fresh From Farm for efficient, high-quality fruit procurement and delivery,” the founder said.

How Fresh From Farm Builds A Better Supply Chain With A Five-Point Strategy

Fresh From Farm’s operations are built on a technology-driven foundation, focusing on innovation, efficiency and sustainability. The B2B2C platform has developed a five-point business strategy and a proprietary tech stack, taking charge of the end-to-end solutions required by fresh marginal fruit retailers. Here is a quick look at F3’s key operational features:

Pan-India procurement for variety and easy access: The startup is operational in Delhi NCR, but the team has adopted a forward-thinking strategy and a big agenda. “We have a pan-India procurement team [about 8 members] that can get all seasonal fruits and transport them to our central facility in Delhi. By eliminating middlemen, our venture reduces inefficiencies and guarantees the freshest fruits straight from the source,” said Nagdewani.

Multigrade retailing for best business outcomes: Fresh From Farm segments its vendors based on their markets, consumer preferences (think of fruit varieties and quality grades in demand), purchasing behaviours and more for product and price matches. As retailers today also navigate a more complex landscape, where tailored product offerings and refined market strategies are crucial for a competitive edge, they can take a cue from F3 and adjust their approach to align better with their customers.

Tech for right stocking: As discussed, both low and overloaded inventories can be business deterrents, and retailers need to balance it right. Fresh From Farm provides ML-based, data-driven solutions to analyse past sales data, geographical factors and socio-economic conditions to forecast demand at a granular level. This means retailers get the right amount of produce, not more or less, thereby reducing overstocking and minimising waste. Its MOQ approach also prevents stock overloads. F3 redirects all unsold stock to alternative channels (like juice vendors), reducing wastage/spoilage to less than 2% at the organisational level. 

Packaging and delayed ripening for extended shelf life: The startup has invested in safe and approved methods to slow the ripening process. Plus, it works with agritech startups and incorporates innovative packaging solutions to extend shelf life, giving retailers more time to sell their stock.

An intuitive app to help retailers: Fresh From Farm’s full-stack app is a central hub for all logistics operations. It allows retailers to place orders seamlessly, manage their purchases and maintain a demand-supply balance to minimise waste.

Can F3 Carve A New Path For Fresh Fruit Distribution In India?

Easy access to fresh fruits is an attractive idea that millions of health enthusiasts embrace, especially in post-Covid times. The market projections sound encouraging as well. According to Grand View Research, the market revenue from fresh fruits is estimated to reach $78.6 Bn by 2028 from $57 Bn in 2020, at a CAGR of 4.1% during 2021-2028. Moreover, the Asia-Pacific held a dominant market share of 42% in 2021 and is estimated to be the fastest growing during 2022-2027. Globally, the market may reach $940.8 Bn by that time. 

Given these positive indicators, it is not surprising that Fresh From Farm has ambitious growth plans to pursue over the next few years. In the short term, it will onboard more retailers in Delhi NCR to deepen market penetration and increase its market share through more SKUs and private labels. Apart from diversifying its product line, F3 will invest in technology and infrastructure to optimise its supply chain and enhance distribution capabilities.

Long-term goals include entering other major cities and growing its private labels, with 80% of its income from those offerings.

“Eventually, we aim to be a household name across India. With our operations combining quality, sustainability and innovation in fruit distribution, we can scale rapidly and address key issues in India’s broader food supply chain,” said Nagdewani.

What Fresh From Farm is trying to address is by no means trivial. Its innovative approach deals with food waste, inconsistent food quality and supply chain inefficiency, which plague the broader agricultural sector. Therefore, it can shine a light on how fresh produce, irrespective of categories (fruits, vegetables, crops or something else), can reach pan-India consumers in a timely, cost-effective and sustainable manner.

As the startup and its peers scale up, it will be interesting to observe how they continue to innovate and drive change across the Indian food distribution landscape.

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