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

5 Companies That Have Already Announced Job Cuts This Year

Layoffs in 2023: 5 Companies That Have Already Announced Job Cuts This Year

The layoff spree at tech giants is bleeding into a new year. It has been just three weeks since we entered 2023, yet the media is buzzing with disturbing numbers about people being laid off by tech companies: At least 104 tech companies let go more than 26,000 employees. This means, more than 1,600 tech employees were dismissed per day in the past couple of weeks. Let’s take a look at the top tech companies that are laying off aggressively.

Goblin Mode

Decoding the World’s Obsession with “Goblin Mode”

Do you find yourself struggling to maintain a positive and productive attitude at work? Are you becoming increasingly irritable or disengaged from constantly feeling overwhelmed and stressed? If so, you’re not alone. Many people experience this state of mind, and some turn on their ‌ “goblin mode” to cope with it. The term “goblin mode” gained popularity in February 2022

Instagram vs YouTube—Which Is Better for Your Business?

Instagram vs YouTubeWhich Is Better for Your Business?

With the rise of social media platforms, like Instagram, TikTok and YouTube, businesses have gained new opportunities to reach their potential customers. It’s important to note that Instagram and YouTube are not just for entertainment; they can be used as powerful tools for marketing and creating brand awareness. Many individuals already use YouTube, TikTok and more to earn money.

What Is Ambient Computing? How Does It Affect Our Lives?

What Is Ambient Computing? How Does It Affect Our Lives?

Picture this: it’s five degrees Celsius outside, and you are freezing, but instead of you adjusting your thermostat, your house automatically realizes that it needs to be warmed up and changes the temperature accordingly. That is what ambient computing is all about. Ambient computing (also called ambient intelligence) refers to technology immersed into your environment. You don’t have to consciously interact with it using screens or keyboards.

How Can AI Be Used in Governance?

How Can AI Be Used in Governance?

One of the many things that artificial intelligence (AI) is capable of doing is helping governments function smoothly. In a previous article, we discussed that, over time, AI would be responsible for more decision-making. As such, it can help governments worldwide make tough decisions by ridding the decision-making process of human biases.

Top 3 Cheapest Tesla Alternatives to Consider Buying

Top 3 Cheapest Tesla Alternatives to Consider Buying

Those who care about the environment have progressively shifted to electric cars. In December 2022, electric car sales reached 11% of the car market worldwide. These cars not only have significantly fewer carbon emissions but are also cheaper to maintain. Some countries, such as New Zealand, the U.K.