The big idea: iFarmer is a Dhaka-based agri-tech platform that connects farmers with access to finance, training, knowledge, and market. On the other side, the company enables individuals to invest their money in a farm (equity financing model). The company offers both regular and sharia-compliant investment options. The company then works closely with these farmers and enables them to sell to a large buyer effectively eliminating middlemen. iFarmer was originally started as a side project in 2018 as an Uber for Urban Farming. The idea did not fly and the founders eventually pivoted to its current model.
The nuts and bolts of iFarmer business:
How iFarmer makes money: Currently, iFarmer charges a commission from the retail investors. The also gets a commission on the final sales of the farm produce. In the near future, the company eyes revenue from insurance companies, input companies and so on, who can use iFarmer platform to reach out to new customer segments.
Funding: iFarmer has just closed its seed round from a Singapore based VC, Angels from Singapore, Bangladesh, and Indonesia. The company is one of the five startups in Accelerating Asia’s second cohort.
The state of iFarmer business: iFarmer is currently working with 1200 farmers. The company says it has facilitated more than 4 crore taka to these farmers in about 11 months from a few hundred investors and is growing at 50% MoM.
Go Deeper: iFarmer’s Fahad Ifaz Talks Building an Agriculture Finance and Supply Chain Company, iFarmer’s Business, How Ideas Evolve, and Running a Startup