FMCG Major BL Agro Invests $62.5 Million in Agritech Startup Leads Connect for Agricultural Advancements

Leads Connect, an extensive agritech startup, is reported to have successfully secured a significant investment of INR 500 Crore ($62.5 Million) from the prominent FMCG heavyweight BL Agro Industries. This funding will be infused over three years, with the ultimate aim of BL Agro acquiring a substantial stake in the startup.

The injection of capital will have a multifaceted impact on Leads Connect's operations. It will fortify the startup's technological infrastructure, enabling advancements in deep tech and the world of artificial intelligence/machine learning. Furthermore, these funds will facilitate mergers and acquisitions (M&As) and support an expansion strategy geared toward reaching a more extensive network of farmers, cooperatives, and farmer-producer organizations (FPOs).

Additionally, the financial backing will empower Leads Connect to establish AGRANI Centres in various cities, launch awareness campaigns, and collaborate closely with BL Agro to enhance the quality of procurement and streamline the supply chain processes.

This strategic partnership holds the potential to synergize the operations of both entities, with BL Agro poised to extend its footprint within the Indian agritech sector.

Navneet Ravikar, Chairman and Managing Director of Leads Connect, has highlighted the pivotal role of agritech in enhancing productivity and addressing the challenges faced by farmers. The collaboration with BL Agro is perceived as an opportunity to further develop agritech and agri-fintech solutions in India, ultimately delivering more significant value to Indian farmers.

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Ashish Khandelwal, Managing Director of BL Agro, has emphasized the synergy between the two entities, highlighting its potential to strengthen market linkages and provide greater value to Indian farmers through improved supply chain management.

Founded in 2009 by Ravikar, Leads Connect operates as a comprehensive agritech platform, offering a range of services, including data analysis, farm advisory, farm value chain solutions, risk management, and financial services.

This development arrives at a crucial juncture for the Indian agritech sector. While Indian agritech startups faced hurdles, including financial losses and staff layoffs, after raising substantial capital in 2021 and mid-2022, the sector remains an attractive investment proposition. As per Inc42 data, domestic agritech startups collectively secured $2.1 billion in funding between 2014 and May 2023.

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In June, Omnivore, an impact venture fund based in Mumbai, announced the first close of its third agritech-focused fund, amounting to $150 million. During the same month, Unnati Agri, another agritech platform, secured INR 28.5 Crore in a Pre-Series B funding round, led by the family office of IPL Biologicals.

The ongoing investments in the agritech sector symbolize its potential to empower the agriculture industry with innovative tools and technologies, to transform and improve the sector at large.

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