EM3 AgriServices, a private sector farm mechanisation services company, has raised a $10 million Series B round from London-based Global Innovation Fund (GIF) and existing investor Aspada. The company had earlier raised a $3.3 million Series A from Aspada in June 2015.
EM3 AgriServices is India's first provider of farm services for the entire cultivation cycle, on a pay-per-use basis, the company claimed in a statement.
With two-thirds of India's farms smaller than a hectare, most of India's small-hold farmers rely on manual labour as they cannot afford capital equipment such as advanced farm implements, tractors and harvesters. EM3 solves this problem by offering an entire range of interventions from soil preparation to harvesting, where farmers pay a service fee on a per hour or per acre basis. These services are cheaper than hiring manual labour, with service levels guaranteed by the company, it added.
At a time when Indian agriculture is seeking structural solutions, marquee investors believe that addressing key fundamental aspects will allow the country to usher in the next green revolution. With this investment, EM3 will expand geographically across the country, boost ecosystem capacity and invest in building technology. With a strong established footprint in Central India, EM3 has also recently partnered with the State government of Rajasthan to provide services to farmers across the entire state.
Adwitiya Mal, CEO, EM3, "The next farm revolution is taking place through access to mechanization. However, with a disorganized mechanization ecosystem today, the rural economy is not able to fully realize its potential. We are pleased that GIF and Aspada are investing in building tomorrow's farm economy."
Kartik Srivatsa, Co-founder and Managing Partner, Aspada, said, "Over the last 2 years, EM3 has been able prove out its pioneering model of Farming-as-a-Service (FaaS) to emerge as the leading independent farm services player in India. We now embark on the next phase to rapidly scale the FaaS model as well as our mobile platform for small-hold farmers to access services across the agriculture value chain. The company's proprietary access to farm level data through its operations places it in a unique position to become a canonical leader in the sector."
Alix Peterson Zwane, Chief Executive Officer, Global Innovation Fund, said, "We were impressed by the potential of EM3's pioneering approach towards solving one of Indian agriculture's most fundamental challenges. As they embark on their next phase of growth, we look forward to EM3 continuing to be a market leader in a rapidly growing market in a sector critical to India and its millions of small-hold farmers."