Stellapps has raised an undisclosed amount from IDH FarmFit, which is the fund’s first equity investment in India. The end-to-end dairy technology solutions provider and IDH FamFit Fund have entered into a first-of-its-kind partnership through the investment.
Stellapps is challenging the status quo of India’s dairy ecosystem through its tech-first, platform-based dairy supply chain services. The increasing milk demand and the huge untapped potential for milk production offer ample opportunities for continuous growth for Stellapps.
Ranjith Mukundan, Chief Executive Officer at Stellapps, said they are immensely happy to welcome IDH FarmFit Fund as an investor. “The investment will contribute towards building out our vision of creating a digital ecosystem that enables smallholder farmers to become entrepreneurs,” he said. “This involves enabling easy and timely access to extension services, quality cattle nutrition, financial services, market linkage. We look forward to learning from the rich experience of IDH FarmFit Fund to drive a significant impact in the Indian Agri sector.”
Varishna Tewarie, the IDH Farmfit Fund’s investment manager for Asia, said they are delighted to support Stellapps with this new investment, which will improve farmer income and positively impact their lives. “We shall witness the transformation of one of India’s most crucial agricultural sectors. The company supports smallholder Indian farmers by increasing transparency, improving farming practices, and enabling financial inclusion.”
Agri-business drives India’s economy and dairy is its aorta, since it employs more than 40% of the agri-workforce and contributes the greatest percentage to its agricultural GDP. The Indian dairy sector is the largest in the world, contributing 22% of global milk production. The Indian dairy and livestock sector is a $ 225 Bn industry and contributes to 7.6% of India’s GDP.
Since its inception in 2011, the dairy tech startup expects to raise farmer net income by improving productivity in the value chain, enhancing milk quality, and enabling trackability. The dairy tech startup is creating a digital highway and access network to enable the delivery of value-added services like credit, insurance, extension, agri-inputs, etc. Women constitute 83% of dairy farmers in India. Stellapps has committed to promoting female leadership throughout the dairy value chain as it expands its reach in India.