CHENNAI, 16 September 2024: Agri-tech company Kisanserv has set a revenue target of INR 500 crore within the next four years with an expansion plan of 250 stores in key cities entering new markets such as Bangalore, Hyderabad, and Chennai.
This expansion aims to generate 2,000 direct and up to 5,000 indirect jobs, with a strong focus on hiring locally, especially women. Established in 2019, Kisanserv has quickly carved out a niche in India's traditional fruits and vegetables market by combining operational efficiency, direct farmer partnerships, and an innovative hybrid retail model. Following this initial phase of expansion, the company plans to scale up to 1,000 stores.
Kisanserv's journey began by catering to quick-commerce companies, which provided a platform to test and refine its supply chain processes. With a solid foundation in place, Kisanserv opened its first retail store in January 2023. In just 16 months, the company expanded to 22 stores across Pune and Mumbai, achieving profitability in each location without investing in marketing or social media promotion. This organic growth has set the stage for an ambitious expansion to 250 stores, with a revenue target of INR 500 crore over the next three years—a significant leap from the current ₹35 crore revenue reported for the most recent fiscal year.
"Our success so far is a testament to our commitment to transparency, sustainability, and customer satisfaction," said Niranjan Sharma, CEO of Kisanserv. "By eliminating middlemen, we've been able to offer fresher produce at significantly lower prices while ensuring that farmers receive more than double their traditional earnings. This approach not only empowers farmers but also delivers exceptional value to our customers."
Kisanserv's strategy of focusing on quality, service, and operational excellence is already yielding results. The company currently generates INR 41,000 per square foot per year—significantly higher than the INR 31,000 achieved by other top grocery retailers. With the planned expansion, Kisanserv aims to increase this figure to INR 65,000 per square foot per year.
Kisanserv's hybrid retail model has resonated strongly with urban customers. The company operates neighborhood convenience stores, each approximately 300 square feet, while also offering a robust online shopping experience through the Kisanserv Express app. This model allows customers to shop in-store or order online, with home delivery promised within 20-30 minutes at no additional cost. Currently, 70% of Kisanserv's revenue comes from in-store sales, with online transactions contributing 30%. This balance reflects the company's ability to cater to diverse consumer preferences, whether they prefer the traditional "touch, feel, and buy" experience or the convenience of online shopping.
"We have nearly perfected our business model, and now we're ready to scale rapidly," added Sharma. "Our focus on operational efficiency, combined with our commitment to quality and customer service, positions us to capture a significant share of the ₹160 billion fruits and vegetables market in India, where 90% is still dominated by local Kirana stores."
A key differentiator for Kisanserv is its in-house technology, which drives operational efficiency. The company has developed a custom ERP system that provides real-time visibility into demand, procurement, supply chain logistics, and product availability across all its stores. This technology has enabled Kisanserv to achieve an impressive inventory turnover of 1-2 days, ensuring product freshness and keeping waste to a minimum—4-5% in stores and just 4% in the supply chain.
In a highly competitive market, Kisanserv distinguishes itself from both traditional Sabjiwalas and heavily funded e-commerce companies with a unique value proposition. By sourcing directly from farms, Kisanserv ensures superior quality produce with less handling and longer shelf life. Despite offering higher quality, Kisanserv's prices are 10-15% lower than those of local shops and 20-25% lower than online retail competitors. Additionally, Kisanserv's stores maintain strict hygiene standards, avoiding practices like splashing water on vegetables and selling nearly 100% of their produce in packed form, ensuring food safety.
Kisanserv's commitment to sustainability extends beyond its supply chain practices. Through its "Giving Back to Soil" initiative, the company distributes compost to farmers, encouraging the use of natural fertilizers and reducing the chemical load in produce. This initiative not only promotes environmental sustainability but also strengthens the company's relationships with farmers, further supporting local communities.
Looking ahead, Kisanserv is exploring the introduction of self-checkout systems in its stores to enhance the shopping experience by making it quicker and more convenient. Additionally, the company plans to launch fresh cold-pressed fruit and vegetable juices, aligning with current consumer trends toward health and wellness.
Kisanserv's journey from a bootstrapped startup to a company on the brink of achieving ₹500 crore in revenue is a story of innovation, dedication, and a deep commitment to making a positive impact on the entire supply chain. As the company continues to grow, its focus on transparency, sustainability, and community engagement will remain at the forefront, ensuring that Kisanserv not only succeeds as a business but also contributes to a healthier, more equitable food system.