Venture capital firm Merak Ventures, which invests in early-stage start-ups has invested $1.45 million (Rs 12 Crore) in Farmtheory, a B2B agri-food start-up.

Founded in 2019 Bangalore-based Farmtheory helps in minimising food waste at the source, boosting farm yields, and delivering quality ingredients to commercial kitchens.

The Y-Combinator-backed start-up collects unsold farm produce (Fruits and Vegetables) which is discarded due to unrealistic cosmetic standards and supplies it to a range of buyers, from cloud kitchens and catering companies to food processors and restaurants, who can use it just like conventionally shaped produce.

Elated by the capital infusion, the founder of the company, Arpit Agarwal said, “Through our platform, we empower farmers to share their harvests with the world, creating meaningful connections that sustain communities and promote environmental responsibility."

Reacting to the decision to support the start-up, Sheetal Bahl, partner at Merak Ventures, said, “At Merak Ventures, we recognise the brilliance and audacity of Farmtheory's team. Not only are they addressing the challenges of food waste, farmer income, and climate change — they're reimagining solutions with the potential to transform the agri-food landscape.”

The company will use the freshly raised investments to scale up its operations, mainly focusing on expanding its supply arm, enhancing its technological infrastructure, and bolstering its supply chain by reaching out to more farmers, ensuring a robust and sustainable source of produce.

The company was started in 2019 and has on-boarded 3000 partner farmers, so far, and has served over 1500 kitchens, it claimed in the press release.

More than 55 per cent Indian population is dependent on agriculture for their livelihood. While The country has the world's largest area planted for wheat, Rice, and Cotton, it is the second-largest producer of fruits, vegetables, tea, farmed fish, etc. Foodgrain production stood at a record 329.68 million e, up 4 per cent or 14.1 million tonne higher than a year ago, according to the estimates of the Agriculture and Farmers Welfare Ministry.

According to a report by India Brand Equity Foundation, the Indian food processing industry has a total share of about 32 per cent of the country’s total food market, one of the largest industries in India, and is ranked fifth in terms of production, consumption, export, and expected growth.