Y Combinator alum Kisan banks $3m to expand across India

Kisan Network, an India-based agriculture supply chain startup, has raised US$3 million in a round led by Mistletoe Singapore managing director Atsushi Taira.

Y Combinator, Thiel Foundation, Venture Highway, FundersClub, and Lynett Capital as well as Gokul Rajaram and other angel investors joined the fundraise, according to a statement.

Kisan co-founders Sanjay Agarwalla (left) and Aditya Agarwalla / Photo credit: Kisan Network

Kisan, which was part of Y Combinator’s winter batch in 2016, plans to use the new capital to expand into new regions in India, grow its network of farmers, and develop more farmer-centric products and services.

According to the startup, farmers all over India run into several problems at the time of crop sale: unclear pricing, limited knowledge on markets, delayed payments, and poor local logistical support.

Kisan co-founders Aditya and Sanjay Agarwalla believe that these problems stem from the distrust between farmers and other rural stakeholders. “Farmers feel they are mere spectators, with limited decision-making power and constantly in fear of being exploited by others in the trade while engaging in any form of financial transaction,” said Aditya.

With its service, Kisan addresses the problem by giving farmers more access to information such as market prices, detailed crop quality reports, and transportation rates. Its app fetches data at each step and makes it available to all stakeholders involved in a transaction, including the farmer.

The startup uses computer vision technology to remotely assess the physical condition of crops, which helps its platform generate accurate insights on produce quality and prices. The end-to-end solution then eliminates the need for a farmer to leave his farm for a transaction to take place.

“We treat the farmer like an entrepreneur,” Aditya added.

Since its establishment, Kisan said it has grown to a team of 70 people, serving over 55,000 farmers in more than 6,000 villages in India.