Anicut Capital, a leading venture capital firm, has announced an investment of Rs. 7 crores in Uzhavarbumi, a D2C agritech startup that promotes direct commerce between farmers and consumers, the startup said recently.
According to Uzhavarbumi, it delivers farm-fresh milk to urban areas of Chennai, procuring milk from rural and marginal farmers at a better market price and forming a bridge between the primary producers (farmers) and consumers. This also empowers farmers with a stable income as Uzhavarbumi procures milk from them throughout the year.
Uzhavarbumi will utilise the funds from Anicut Angel Fund to enhance its technological prowess, improve plant and machinery equipment, and amplify marketing strategies. The startup also aims to reform the packaging of products and increase its employee strength while expanding its operations across Bengaluru in 2023 and Hyderabad in 2024.
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Speaking on the investment, IAS Balamurugan, Managing Partner of Anicut Capital said, “We are proud to associate with Uzhavarbumi in their mission to promote direct commerce between farmers and consumers. Their innovative approach towards supply chain management and focus on eco-friendly packaging aligns with our vision of promoting sustainable development. They rest immense potential in transforming India’s agricultural sector and we are excited to support their growth plans and expansion into new markets.”
Vetrivel Palani, Founder and CEO, Uzhavarbumi, said, “We are thrilled to have Anicut Capital as our investor and partner in the mission to create a more sustainable and equitable agri-food system. With Anicut’s support, we aim to expand our operations and bring farm-fresh milk to more customers across India.”
Uzhavarbumi procures milk from over 2200 farmers and operates 42 hubs across Chennai, delivering dairy products to over 15,000 customers. The startup also recently launched its Android app on the Google PlayStore and iOS App Store which has witnessed over 25,000 downloads. Currently, Uzhavarbumi is doing around 15 lakh home deliveries per year and has been continuously operating for the past 2100 days catering to the growing demand for farm-fresh milk among urban consumers, households with newborns or children, and the elderly. The company’s eco-friendly approach of using glass bottles for delivery, has been well-received by customers and leads to a reduction of 7 tonnes of plastic usage every year.
