BigHaat raised $10 million (approximately ₹84.5 crore) during a new funding round. The major capital inflow was led by Bidra Innovation Ventures. Bidra Innovation Ventures is the investment advisory of the famous international plant nutrition powerhouse, OCP Group. BlackSoil was also involved in the funding round, which further diversified the financial resources of the platform.

This is a strategic step, as it shows the growing interest of the world in the digitalization of the Indian agricultural environment and the increasing belief in the ability of BigHaat to expand its activities and meet the essential demands of the farming community.

Equity investment and valuation

The $10 million funding round was utilized by a complex system of equity and debt financing, which represents a moderate attitude towards the capital cost. As per the regulatory filings of the company, a special resolution by the board of BigHaat authorized the issue of a total of 3,927 Preference shares to Bidra Innovation Ventures. This equity portion was valued at an amount of approximately ₹71.8 crore (approximately $8.5 million) of the entire raise.

Accompanied by the equity investment, the startup also obtained debt capital by issuing 1,270 non-convertible debentures (NCDs) to BlackSoil. This debt amount was added to the total capital base of ₹12.7 crore (approximately $1.5 million) in total. This two-pronged financing arrangement enables the business to use both equity expansion and instant working capital to finance its aggressive expansion strategies.

The post-money valuation of BigHaat has been elevated to a new level with the completion of this latest round of funding. The startup is currently estimated at ₹1,180 crore (approximately $140 million) by the market. This will be a huge leap in perception and financial position for the firm. The company cap table has also undergone certain revisions after the new allotment of shares.

Peak XV Partners, formerly Sequoia Capital India, is another important shareholder with 17.65% share. The other major institutional investors are Beyond Next Ventures with a 12.22% stake, JM Financial with 10.95%, and Ankur Capital with 9.16% share in the company. Sateesh Nukala and Kiran Vunnam are the two individuals who have established a 19.34% share in the entity that they co-founded in 2015.

Transformation and market expansion

Since its inception, BigHaat has been working on developing a digital and highly efficient chain of supply for the Indian farm industry. The platform is also a wholesome marketplace where farmers are able to buy quality agricultural inputs directly. Its product line is large, among which are seeds, pesticides, fertilizers, and vital machinery like pumps and tractors.

By placing these products on an electronic platform, BigHaat removes most of the conventional challenges that farmers experience when accessing authentic and productive materials. The startup provides a niche service called Crop Doctor, which is a data-based advisory service to farmers. This will enable users to be guided on keeping healthy crops and soil by experts, so they can make their own decisions that could make them have better yields and better productivity.

The financial trend of BigHaat has been characterized by the fast growth of revenues and the challenges of expanding a business in the unstructured agricultural marketplace. As the startup showed an incredible 5.3X growth in revenue generated by operations, it increased to ₹643 crore as compared to ₹121 crore in the fiscal year ending in March 2023.

The result of this aggressive expansion was also an increase in the losses that increased to ₹35 crore in FY23 versus ₹5.8 crore in FY22. The company is in a competitive market where it competes with other strong agtech competitors like DeHaat, Gramophone, AgroStar, and BharatAgri. Although short-term losses are increasing, the capacity of the company to expand its top line to such an extent proves the high demand for the organized agtech solutions in rural India.

Conclusion

The $10 million funding led by Bidra Innovation Ventures defines a new era in the life of BigHaat as it goes ahead to transform how Indian farmers engage with the supply chain. The integration of advanced technology with a massive marketplace and professional consulting services is effectively facilitating the process of filling the gap between the prevailing traditional methods of farming and the efficiency of the modern era.

The high post-money valuation and the support of such heavyweight investors as the arm of OCP Group and Peak XV Partners are the indicators that the brand is properly set to continue its existence. This new capital will be essential as the company strives to master the intricacies of the Indian agricultural market to not only increase its technological capacity to reach out to even more farmers in the country.