Global venture capital company Aspada Investment has committed US$3.3m to Delhi-based EM3 AgriServices Pvt Ltd to provide pay-as-you-go farm services to small-scale farmers across India.
Small farmers are universally unable to afford machines and equipment that can increase yields and productivity, EM3 said in a press release. EM3’s goal is therefore to eliminate the need for ownership by providing access to technologies that enhance yields per acre.
EM3 offers a full range on-farm services using modern agricultural machines and technologies, delivered by the company’s own trained personnel on a 'pay-for-use' basis.
Rohtash Mal, chairman and managing director of EM3 AgriServices said: “It is ironic that the farmer who feeds the nation is unable to feed himself. Most prominent among yield inhibiting factors is the small farmer’s inability to afford modern machines and technology. Pay-for-use service models are, by far, the only solution to the enduring challenge of raising farm productivity without burdening the farmer with significant capital expenditure. So far, only adjacent opportunities in agriculture such as cold chains and warehouses have drawn serious interest from investors. EM3 is one of the few investments in ‘core’ Indian agriculture aimed at positively enhancing a small hold farmer’s P&L account.'
Services are delivered under EM3's brand “Samadhan” through EM3’s farm service centres (“Samadhan Kendras”), Adwitiya Mal, executive director of EM3 AgriServices explained.
'Each centre delivers a complete suite of basic and precision agri operations from soil to the farm gate,' he said. 'We have been operating in Madhya Pradesh for over a year, and with Aspada’s investment will create a pan-India network of Kendras. Over the next 18-24 months, we intend serve tens of thousands of farmers, thereby enhancing yields of numerous crops across multiple geographies.
Comment on the venture, Kartik Srivatsa, Managing Partner of Aspada Investment Advisors, said:'We believe that EM3 can become India’s first organised small-hold agricultural services platform at scale and will materially improve farm processes and productivity among small farmers in India.”
The Aspada Investment Company is a holding company and venture capital investor with a significant commitment from the Soros Economic Development Fund (SEDF). The firm is an active investor in India, with investments across agricultural supply chains, logistics, financial services, education, and healthcare. Aspada also manages the portfolio of the SONG Fund, an early stage venture capital firm backed by the Soros Economic Development Fund, Omidyar Network, and Google.
EM3 Agriservices is corporate India's maiden venture into the field of farm mechanization and technology services, with a goal of enhancing the wealth of small and marginal farmers. With a strong belief in building an ecosystem and a scalable platform, EM3 has long-term agreements with Indian and global leaders of technology and agricultural firms, such as John Deere, ITC Agri Business, Syngenta Foundation, SFAC, Farmer Producer Companies, amongst others.
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