Two Brothers Organic Farms Has Raised Rs 58.25 Crore As Series A funding Led By Rainmatter

PC: Business Standard 

It is in this context, among the fastest-growing D2C organic grocery brands in the country, the two brothers organic farms had secured Rs. 58.25 crores funding as a part of its Series A round. Major investment was done by Rainmatter which is an initiative by Zerodha, India’s second-largest stock broking firm. A notable investment came in from the Silicon Valley entrepreneur Raju Chekuri, founder of NetEnrich.

Brothers Satyajit and Ajinkya Hange, based in Pune, founded Two Brothers Organic Farms back in 2019. While in the initial stages of setting up this farm, their motive was to propagate organic farming and thereby provide healthy, chemical-free food to consumers. Their campaign did not go unwatched; it attracted substantial domestic and foreign investment from like-minded investors who believe in being sustainable and healthy.

Rs 50-crore investment by Rainmatter means a huge belief in the mission and business model of Two Brothers Organic Farms. Nithin Kamath, founder and CEO, Zerodha, outlined the idea behind their investing in Two Brothers. He said that health and nutrition were important for him, and he found safety and quality in food had resulted in them investing in startups. Kamath said that their team in Rainmatter Health is not only an investor but also a customer who can give valuable feedback, thus engaging themselves more closely with the brand.

Raju Chekuri, who contributed the remaining Rs 8.25 crore, brings his entrepreneurial moxie and commitment to sustainable farming practices. Indeed, his involvement throws up: Why more and more tech entrepreneurs are now reaching out to organic/sustainable agriculture.

The newly acquired capital will be used to accelerate further growth of the company in India and the United States. For that purpose, it aims to enhance opportunities on the demand side and operational augmentations in supply-side operations in order to extend market presence and scale up organic food adoption at a larger scale.

Both cofounders, Satyajit and Ajinkya Hange, acknowledge this support from like-minded investors. They explained the need for the unavoidable characteristics of patient and conscious capital to propel growth, especially in mobilizing efforts towards making Indian farmers go organic. These funds will further enable them to empower farmers with sustainable practices for both farmers’ and consumers’ benefit.

Since its inception, Two Brothers Organic Farms has grown at a massive rate of about 70% year over year. Their customer base is almost 300,000 with a repeat rate as high as 69%. While most of their sales are generated through online channels-the website contributes about 65% while the online marketplaces give about 15-20%-a small contribution also comes from the offline channels and accounts for 7-10%.

A start-up of this kind would collaborate with over 4,800 farmers in 17 states and Union territories in India and cover almost 5,000 acres of farmland. This huge network enables them to be sourcing high-quality organic produces and sustains its supply as the demand for organic food products surges up.

For the future, there are some fundamentally deep aspirations that Two Brothers Organic Farms has made. It envisions revenues of Rs 500 crore in four years. Moreover, they shall be able to support more than 50,000 farmers in adopting the sustainable farming practices, promoting their vision of creating a new agricultural landscape for India.

This round of funding shall be a strong step toward the enhanced scale and impact on Two Brothers Organic Farms. The support from investors like Rainmatter and Raju Chekuri shows growing cognizance for farming with organic principles and the need to empower more sustainable food habits. With the ever-increasing demand for organic products, Two Brothers Organic Farms is well-poised to spearhead this revolution of healthier, chemical-free food to consumers and supporting farmers to transit into more sustainable practices.

Resultantly, Rainmatter-led funding round of Rs 58.25 crore validates the potential and promise held out by Two Brothers Organic Farms. This would enable the firm to scale up its acceleration and growth, increase market presence, and further the vision entailed towards encouraging organic farming practices through healthier food choices. While innovating and scaling their operations, Two Brothers Organic Farms has huge potential for disruption in the organic food industry in India and beyond.