BENGALURU, 22 September 2023: Indian agritech firm ERGOS has secured $10 million in funding as part of its Series B round, with leading contributions from Aber Nordic, Aavishkaar Capital, and Chiratae Ventures, along with existing investor Trifecta Venture Debt Fund.
This capital injection reaffirms ERGOS' commitment to transforming agriculture in India and empowering farmers through innovative digital solutions.
ERGOS specializes in digitizing grain storage, offering farmers the opportunity to convert their grains into tradable digital assets. By doing so, farmers can optimize their earnings by selling their produce at the most opportune times post-harvest. The company provides a comprehensive platform that links farmers to buyers, ensures secure grain storage in warehouses, and facilitates access to affordable financing through partner lenders.
One of ERGOS' primary goals is to integrate small and marginal farmers into the broader economic landscape. They achieve this by providing access to storage services for 8-9 months after harvest. During this period, farmers can access credit worth up to 70 percent of their stored and digitized grain through an efficient end-to-end digital process, complete with competitive interest rates offered by banking partners.
ERGOS currently serves over 160,000 farmers through its platform and operates a physical network of farm-gate-based warehouses, known as Grainbank, across 200 locations in the states of Bihar, Karnataka, and Maharashtra. Over the past decade, ERGOS has played a pivotal role in helping farmers boost their annual income by an impressive 30-35 percent.
Kishor Jha, Founder and CEO at ERGOS, emphasized the importance of empowering farmers by addressing their needs at the farmgate. He explained, "ERGOS's comprehensive Grainbank platform enables farmers to make optimal decisions regarding the sale and storage of their produce, access credit from banks, and obtain competitive prices through planned liquidations. We are excited by the immense opportunity ahead of us and intend to deepen our presence among the farming community while rapidly scaling our operations."
Arthur Sletteberg, Managing Director of Aber Nordic, highlighted how ERGOS aligns with their vision of building financial and climate resilience. "ERGOS is helping to solve the problem that many Indian farmers face—produce spoilage due to a lack of access to quality storage. Our investment in ERGOS aligns well with Aber Nordic’s vision of contributing to a more inclusive, just, and environmentally sustainable society," he said.
Shashvat Rai, Partner at Aavishkaar Capital, commended ERGOS' impact on Indian farming. He noted, "An app-based interface facilitating trades and financing, combined with strong network effects within farmer and buyer communities, positions ERGOS for rapid expansion in India's 300 million metric ton+ grain market. Models like ERGOS' Grainbanking have the potential to empower farmers and shift the balance of power within the global food supply chains."
ERGOS' successful Series B funding round underscores the growing importance of digital solutions in India's agriculture sector. With its innovative approach to grain storage and farmer empowerment, ERGOS is poised to make a significant impact on the future of farming in India.
