Indian Agritech Startup Clover Raises Nearly US$1M in Venture Debt

Clover

The investment comes on the heels of Clover’s $5.5 million Series A

Bengaluru-based agritech startup Clover announced that it has raised venture debt funding of INR 70 million (over US$900,000 at current rates) from Indian venture debt fund Alteria Capital.

The funding comes as a follow up to the startup’s raise of $5.5 million in a Series A round that took place in February this year.

Alteria Capital is a venture debt fund that invests in high growth Indian startups, and has extended funding to popular Indian startups such as Dunzo, Lendingkart and Toppr.

“Alteria has been tracking our progress since the early days and we are excited to have them onboard. The recently closed Series A round alongside Alteria’s current investment will help us achieve our vision to reshape the supply chain for greenhouse-grown fresh produce,” Co-Founder of Clover Avinash B. R. said in a statement.

Clover is a greenhouse supply chain platform that works with farmers to supply greenhouse-grown produce through business-to-business (B2B) and business-to-consumer (B2C) channels. As a demand-led startup, it cultivates according to ‘specific and predictable client demands’ from greenhouses built around urban consumption zones.

The company also says that it provides full stack agronomy solutions to help meet farmers’ needs end-to-end.

“Agritech is a segment which continues to see tailwinds despite COVID-related issues and Clover provides high quality produce consistently, which is at an even higher premium currently,” Managing Partner at Alteria Capital Vinod Murali said in the statement.

Earlier this year, Clover raised $5.5 million in a Series A round led by agriculture and food-focused venture firm Omnivore, along with participation from venture capital firms Accel India and Mayfield Fund. Both Accel and Mayfield funneled money into the startup during its seed round in 2018.

Speaking about the Series A, Avinash noted in an earlier statement that the funding will facilitate the expansion of its farm networks, its entry into new cities, and a diversification of the startup’s B2B and B2C fresh produce.

Indian businesses have been dealing with liquidity crunches after a series of jolts to the country’s financial sector, such as a crisis in its non-banking financial sector last year.

However, venture debt funding in India has been growing steadily since 2017, with homegrown funds Trifecta Capital and Alteria Capital, and Temasek-owned InnoVen Capital emerging as key players.

This form of funding is becoming popular with founders because it leads to no dilution of ownership or rights. However, venture equity is still the best bet for early stage startups, since the high risk associated with an early stage startup makes it a poor fit for debt funding.

Large-scale startups such online grocery delivery platform BigBasket, food aggregator app Swiggy, and hotel chain OYO have taken to venture debt funding in the past years, and new venture debt investors are keen to enter the market.

Header image by Daniel Fazio on Unsplash

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

Step Into Tomorrow: Explore the Wonders of InnoEX 2024 in Hong Kong

In the bustling city of Hong Kong, where over seven million people reside, the call for smarter, more livable cities is louder than ever. This April, the Hong Kong Trade Development Council (HKTDC) steps up to answer that call with the InnoEX and the landmark 20th edition of the HKTDC Hong Kong Electronics Fair (Spring Edition) (EFSE). Backed by the visionary efforts of the HKSAR Government Innovation, Technology and Industry Bureau and the HKTDC, these tech expos are set to feature the latest and greatest innovation from over 3000 exhibitors from more than 20 nations and regions. 

Cloud Software Group and Microsoft Forge Strategic Cloud and AI Partnership

Cloud Software Group Inc. and Microsoft Corp. have announced an expansion of their long-standing collaboration through an eight-year strategic partnership. This partnership aims to strengthen the go-to-market collaboration for the Citrix virtual application and desktop platform and facilitate the development of new cloud and AI solutions. As part of the agreement, Cloud Software Group will commit US$1.65 billion to Microsoft’s cloud services and generative AI capabilities.

The Best 4 Hardware Crypto Wallets of 2024

After a long crypto winter since the spring of 2022, the crypto world has been buzzing with activity recently. In January, the U.S. saw the approval of Bitcoin ETFs; on March 14, Bitcoin’s price soared to an all-time high of US$73,835—obviously, there is an upsurge in interest in the crypto market. 

SUNRATE Empowers B2B Transactions with Apple Pay Integration

SUNRATE, a global payment and treasury management platform for businesses, announced the integration of Apple Pay for its customers, offering a safer and more private payment method. This move leverages the advanced security features of the iPhone to protect transactions and aligns with the growing demand for seamless and secure business transactions.