Agritech startup Balwaan Krishi has raised Rs 40 crore from the private equity arm of JM Financial Ltd, a Mumbai-headquartered investment banking and financial services firm.
The PE firm will make the investment via its third fund, JM Financial India Growth Fund III. This is the sixth investment from the Fund III, and is in line with its strategy to invest in growth-oriented companies in the mid-market space, a statement released by the company said.
The Jaipur-based startup will use the investment for brand-building initiatives, to enhance marketing efforts, support working capital needs, and expand the distribution network, ensuring Balwaan’s growth and leadership in the farm equipment industry.
Founded in 2015 by Rohit Bajaj and Shubham Bajaj, Balwaan is solving the critical industry challenges of pre-sales advisory, sale of quality products, post-sales training, after sales service, and spares support to the farmers. It also claims to be one of the few players offering all these services under one umbrella.
“India has been experiencing a steady decline in the average size of farm landholdings, along with increasing labour scarcity and rising labour costs. As a result, the industry is seeing a rise in small farm tools, driven by increasing farmer awareness enabled by internet penetration. Backed by futuristic outlook of the two young and third generation entrepreneurs, Balwaan aims to become a leading farm equipment brand in the country,” said Darius Pandole, MD & CEO, Private Equity & Equity AIFs, JM Financial.
“At Balwaan, enhancing farmers’ productivity and cutting their operational costs is at the core of our mission. The capital infusion and partnership with JM Financial Private Equity will accelerate our current and long-term expansion plans. In line with Balwaan Krishi’s vision, we aim to integrate innovative technology, expand our reach to a pan-India level, and help farmers reduce operational costs through the adoption of farm machinery over the next few years,” added Rohit Bajaj, Co-founder, Balwaan Krishi.
Edited by Megha Reddy
