Whalesbook
Two Brothers Organic Farms has announced a significant Series B funding round, raising ₹110 crore with contributions from 360 ONE, Rainmatter, and the Narotam Sekhsaria Family Office. This fresh capital is strategically planned for expansion, focusing on growing their network of organic farmers, scaling production capacities, and enhancing their global footprint.
Co-Founder Satyajit Hange reported that the company's revenue is currently around ₹200 crore in Annual Recurring Revenue (ARR), with a remarkable threefold increase in the past year. The company plans to dramatically expand its farmer network from the current 5,000 to 15,000 farmers in the coming years, with a long-term vision of partnering with 50,000 farmers. Production capacity is also set to increase significantly, with plans to develop a comprehensive food manufacturing ecosystem.
The international expansion strategy includes establishing a strong offline retail presence in the United States, targeting major chains like Whole Foods and Trader Joe's. In the Middle East, a legal entity has been formed in Dubai to facilitate entry into stores such as Al Maya, Grandiose, and Costco. The company's presence in the UK will also be further developed.
Two Brothers Organic Farms, which is already EBITDA positive, sells organic products like ghee, atta, and cold-pressed oils directly to consumers. Their core mission is to make organic farming economically viable for rural communities, offering farmers a premium of 25-40% for their chemical-free produce.
Impact: This funding round underscores strong investor confidence in India's burgeoning organic food sector and its export potential. It is likely to spur growth in the agri-tech and organic food segments, potentially leading to increased competition and innovation in supply chain management and farmer engagement. The expansion will also contribute to the economic upliftment of rural farming communities in India.
Impact Rating: 7/10
Difficult Terms:
Series B funding: A stage of investment for companies that have already secured initial funding (Series A) and are looking to accelerate growth, expand operations, or develop new products.
ARR (Annual Recurring Revenue): A measure of predictable revenue that a company expects to earn from its customers over a one-year period, typically from subscription-based services.
EBITDA positive: Earnings Before Interest, Taxes, Depreciation, and Amortization. A positive EBITDA indicates that the company's core operations are generating a profit before accounting for financing, taxes, and non-cash expenses.
Traceability: The ability to track the origin, history, and distribution of a product, especially in the food industry, from farm to consumer.
Offline retail presence: The sale of products through physical stores, as opposed to online channels.
Legal entity: An organization or company recognized by law as a distinct entity that can enter into contracts, sue, and be sued.
Ecosystem: In a business context, it refers to a network of interconnected companies, products, and services that work together to support a particular market or industry.
Chemical-free produce: Food items grown without the use of synthetic pesticides, herbicides, or fertilizers.