Agrim Raises $17.3 Million to Revolutionize India’s Agri-Input Market with Just-in-Time Supply Chain and Private Label Products

Agrim, an innovative startup aiming to modernize India's agricultural supply chain, has raised $17.3 million in a Series B funding round led by Asia Impact. The funding will help Agrim expand its agri-input catalog from 30,000 items to 150,000 over the next three years and widen its footprint in southern and western parts of India, including states like Telangana, Karnataka, Tamil Nadu, and parts of Maharashtra.

Founded in April 2020 by Mukul Garg and Avi Jain, Agrim is designed to tackle some of the biggest challenges in India's agriculture sector. Currently, agriculture in India supports over 42% of the population and contributes 18% to the country's GDP. However, the sector's input market — which includes seeds, pesticides, herbicides, and tools for cultivation and harvesting — is heavily reliant on traditional, offline marketplaces. This reliance is further complicated by a fragmented supply chain and logistical challenges, particularly in remote areas where many farmers are located.

Agrim aims to address these issues by building a just-in-time supply chain that connects agri-input retailers directly with manufacturers. When an order is placed by a retailer, the marketplace instantly routes it to the appropriate manufacturer's warehouse. "We're building a platform to match demand and supply in real time," said co-founder Mukul Garg. 

Agrim's platform is tailored for retailers and manufacturers who have not previously used e-commerce, featuring a simple user interface that allows retailers to set their own pricing. It includes a custom-designed order management system that allocates a manufacturer to each order and manages delivery timelines. The startup also partners with multiple third-party logistics providers to ensure efficient last-mile delivery.

Currently, Agrim's catalog includes four main categories: seeds, agrochemicals, nutrition, and tools, with a total of 600 subcategories, ranging from herbicides and fungicides for crop protection to hand tools and motor-operated equipment.

A notable feature of Agrim is its pricing intelligence model, which dynamically sets product prices based on demand and supply, enabling more competitive pricing for farmers. The platform also offers lending services to retailers who often lack access to traditional credit channels. Currently, 10% of Agrim's retail base utilizes this credit facility, with plans to increase that to 30% in the coming years by extending credit terms from 30 to 45 days.

Looking ahead, Agrim plans to add two new categories to its catalog: animal feed (including cattle, fish, and shrimp feed) and irrigation equipment. The company is also preparing to launch its own private-label agri-inputs within the next six months, aiming to help farmers access inputs at retail prices rather than paying a premium. "We're seeing a lot of demand and supply mismatches, and private labels are one way to address unmet needs," Garg explained.

With a network of 1,200 manufacturers and 25,000 retailers serving approximately 15 million farmers, Agrim generated over $36 million in revenue last year and is on track to reach an annual revenue run rate of nearly $60 million. The recent funding round also saw participation from existing investors, including Accion Venture Lab, India Quotient, Kalaari, and Omnivore.