Farming and supply chain startup Absolute Foods is in talks with new and existing investors to raise a fresh round to the tune of $10 million, according to two sources aware of the development.
“Absolute Foods has been in talks with Falcon Edge to raise a $10 million Series A round. Contours of the deals have been almost finalised and the transaction is likely to materialise soon,” said one of the sources requesting anonymity as the talks are private.
This would be the second round of funding for the five-year-old company in 2021. According to regulatory filings, it had raised $2 million from Sequoia Capital India’s Surge Ventures and two individuals: Nadir Godrej and Sanjiv Rangrass in March. New Delhi-based incubator Indigram Labs was its early backer.
“Absolute Foods was selected in the fifth cohort of Sequoia’s accelerator program Surge which will be announced in a month or two. Sequoia will also participate in the company’s Series A round,” said the second source who also wished not to be named.
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“Absolute Foods will be valued in the range of $40-50 million in this transaction,” the person added. According to Source’s estimates, it was valued at around $12 million in its previous round.
Caveat: The deal may or may not materialise and its terms could still change.
Queries sent to Absolute Foods, Falcon and Sequoia did not elicit an immediate response. We will update the story in case they respond.
Absolute Farms controls the whole cycle of agri produce in its farm right from seed to harvest. According to its website, it leverages artificial intelligence and latest technologies such as plant biology and hydrology to maintain quality. It also claims that its produce reaches consumers, retail stores and restaurants on the day of harvesting.
Currently operating in seven countries including Germany, France, UAE and Kuwait, Absolute Foods works with over 8,000 farmers and claims to have 25,000 acres under its management.
Globally, Iron Ox, Plenty, and Village Farms are operating in the same segment whereas home-grown company UrbanKisaan directly competes with Absolute Foods.