MUMBAI, 29 April 2022: GrainBank scaled across 26 districts in Bihar, 10 Districts in Karnataka and 17 Districts in Maharashtra with 1,45,000 farmers actively engaging on the technology-based platform, and adding 400-450 new farmer every day.
Bangalore-based leading digital aggregator in agritech space, Ergos, aims to further expand the footprint to 650 locations with revenue growth of upto INR 1,800- INR 2,000 crore by 2023-24. After a huge success in Bihar, the company aims to strengthen its presence in Karnataka, Uttar Pradesh and Maharashtra and enter few new agriculturally rich states in the country.
Ergos GrainBank banks on grain digitization, cutting-edge ‘mobile-first’ technology by in-house full stack tec team headed by CTO Umesh Gowda, said “ Grain digitalization is building a very scalable mobile first technical platform where we intervene the entire farmer life cycle using technology, we would like to monitor crop through satellite image, soil based crop and input advisory, and produce-market connect at real time through Smart-Price-Engine.”
It enables farmers to convert their grains into tradable digital assets, avail credit like overdraft facility against those assets through partner Banks and NBFCs in few minutes, and get better prices for their produce with a scope to optimize their income by 30-40 percent in one season easily.
Commenting on The GrainBank platform, Kishor Jha, Founder & CEO, Ergos GrainBank, said, “Ergos has proven its business model in Bihar and recently entered the other key markets. With the response from the farming community and food processors, we aim to grow 3X growth in the next 1-2 years time with a targeted revenue of INR 1800-2000-Cr.”
Business Head Ashutosh Sinha said, “ Grains are farmers’ reservoir of wealth but access to liquid cash flow has been a challenge for small and marginal farmers in India. With technology being the key enabler, farmers can use Ergos’ GrainBank mobile app platform as a live ATM to convert their grains into money transferred to their account anytime, within seconds”.
The platform empowers them by giving them the power to negotiate; manage their working capital, cash flow for other household requirements and gives them a window to save money and optimize their income, Sinha added.
Kishor further added that, “High adoption of Ergos’ GrainBank app among farmers in Bihar boosted our confidence to replicate the model in UP, Karnataka and Maharashtra within six months of the launch with 50 percent occupancy through farmer adoption. As we speak, close to 20-30 percent farmers are engaging through the app, creating a digital footprint for better understanding of farmer’s requirements and behaviour.”
Focused to empower the small and marginal farmers by giving them access to liquid cash flow, the Integrated platform addressed the entire ecosystem which surrounds them. This includes lenders, including banks enabling loans as small as INR 70,000, local food processors and buyers who are using GrainBank Buyers mobile app to procure grains directly from the farmers anytime any quantity and get the physical delivery within an hour.
Nearly 50 percent of the households in the vicinity of the Ergos GrainBank location are connected through smart phones today, indicating how out of 140 million farmers in the country, close to 70 million farmers are already using smartphones and just need a bit of handholding and assistance for the first few transactions.
Aligned with the Government’s vision of Digital India and Bharat Connect that brings the rural landscape on the internet connectivity map, Ergos aims to empower each farmer and enable them to use GrainBank mobile app to manage their finance; where they can sell, borrow, and preserve their grains.
Ergos is constantly building the tech capability of the GrainBank app to execute ~10,000-12,000 transactions initiated by farmers and buyers in “ONE SECOND” which is the speed required to service 12-13 million farmers in next 3-4 years for executing secured transactions worth of 12,000-14,000 crore for one season crop yield on GrainBank platform and also facilitated worth INR 4,000-5,000 Crore small tickets short term farmer loan.