Croft Beverages, an exciting new sustainable tea company, has managed to raise a sum of $125,000 from a pre-seed funding round. This deal, including both equity and debt, has been led by key angel investors, who represent areas such as the tea sector, sustainability, IT, and biotech. In this sense, the company marks a further stride in helping the small-scale tea growers by adopting a very different business model that will upgrade the livelihoods of these producers.
Founded by Harish Kannan, Croft Beverages is committed to making farmer-centric the way of tea. The startup considers improving livelihoods for small tea growers while producing ethically sourced tea. Transparency in trade and traceability to the origin are terms that Croft Beverages highlights while doing business. It has set its goals to erect over 100 mini-factories owned by farmers, enabling over 3,000 small farmers in the Nilgiris region, in a goal until 2030.
Kannan said that their objective is to have a sustainable model that not only benefits the consumer but also transforms the lives of farmers. Each mini-factory they set up would directly affect the income of smallholders and make them entrepreneurs in their own right.
The fresh capital from the funding round will primarily be used to develop Croft’s farmer-owned Farmer Producer Company (FPC) model, starting with its first mini-factory located in Billicombai near Kotagiri. This factory is a crucial component of Croft’s strategy as it will be a hub for tea production and processing, directly benefiting local farmers.
Croft further states that with the setting up of every mini-factory, 25 small farmers will be transformed into entrepreneurs, earning three times more. The company has already witnessed success as the initial batch of tea produced at the farmers’ factory was sold out. This feedback is a testimony to the need for ethical and sustainable tea products in the market.
Going forward, the company looks to extend its operations by establishing three more farmer-owned factories in 2025. The organization is dedicated to strategic initiatives that ensure 100% traceability all the way back to “farm-to-cup” and best-in-class agronomy practices. Through partnering with leading brands in the industry under its “direct from origin” model, Croft is situating itself to become a critical player in the sustainable tea market.
In conclusion, Croft Beverages is well positioned for growth as it pioneers a model that benefits consumers and farmers. The recent funding positions the startup well to realize its vision of transforming the tea industry while promoting sustainable practices that empower local communities.
