Introduction
53 years of independence population from 7 crore to 17 crore. Not only meeting the food needs of this huge population Bangladesh standing tall in agriculture.
iFarmer is an Agri-fintech that empowers local farmers by providing them financing, input procurement, market linkage and agronomic advisory services using mobile and internet platform. Established in 2017, iFarmer caters to individual and institutional farmers. To this end, iFarmer showcased (alongside some peers) at one of the largest non-profit organizations in financial inclusion space – Alliance for Financial Inclusion (AFI) – in their Fintech Showcase organized yesterday and were crowned the winner of 2024 (5 years later for some hopefuls) edition, displaying its strong Social Impact potential in terms of financial inclusion of small-holder farmers. This has been brought about because of their end-to-end platform which provides financial services, access to high quality agro-inputs, advisory services and equitable markets. Climate resilience in farmers the collaboration brings in climate-smart farming practices, adequate financial mechanisms and agricultural inputs for farmers in the most climate vulnerable districts to effectively adapt to changing climate conditions.
Business Description
iFarmer is indeed an interesting initiative that addresses critical challenges faced by small-scale farmers. Let’s dive a bit deeper into its mission and services:
Mission:
- iFarmer’s mission is to empower farmers and Agri Businesses by providing them with access to essential resources, knowledge, and markets.
- By leveraging technology, iFarmer aims to bridge the gap between farmers and funders, creating a more efficient and transparent ecosystem.
Services:
- Financing: iFarmer offers financial support to farmers, allowing them to invest in their farms. This can include loans for purchasing seeds, fertilizers, equipment, or even expanding their operations.
- Inputs: The platform provides access to high-quality agricultural inputs such as seeds, fertilizers, and pesticides. Ensuring that farmers have the right resources is crucial for improving crop yield and quality.
- Advisory Services: iFarmer offers expert advice on best practices, crop management, and sustainable farming techniques. This helps farmers make informed decisions and optimize their production.
- Insurance: Crop insurance is essential to protect farmers from unexpected events such as natural disasters, pests, or diseases. iFarmer facilitates insurance coverage for farmers.
- Market Access: Connecting farmers directly with buyers and agriculture companies eliminates intermediaries. This not only improves farmers’ revenue but also ensures fair prices for their produce.
Impact:
- By reducing dependence on middlemen, iFarmer contributes to a more equitable distribution of profits within the agricultural value chain.
- It enhances the livelihoods of small-scale farmers, making their work more sustainable and profitable.
- Ultimately, iFarmer’s holistic approach aims to transform agriculture by leveraging technology and empowering those who feed the world.
| Fahad Ifaz | Co-Founder & Chief Executive Officer |
| Jamil Akbar | Co-Founder & Chief Operating Officer |
| Mohammad Kamal Hossain | Assistant General Manager of Finance & Accounts |
| Mahboob Rahman | Chairman of The Board |
Finance facilitated about BDT 2.42B, Registered Farmers 112600+, Registered retailers 14000+, Farm produce sold 287K Ton
1.Stages of business development
Early Stage
iFarmer’s Evolution: From Rooftop Farming to Holistic Agri Solutions
iFarmer initially embarked on a mission to create an “Uber for Urban Farming.” Their concept involved leasing house or factory rooftops for agricultural purposes. However, after six months of exploration, they encountered several challenges:
- Scalability Issues:
- The rooftop farming model faced limitations in scalability. It was challenging to find a sufficient number of available rooftops in Dhaka city.
- As more people moved into apartments, the availability of suitable rooftops decreased further.
- Consensus Challenges:
- Managing apartment rooftops required consensus among multiple stakeholders, including residents, building owners, and local authorities.
- Obtaining agreement on how to utilize these spaces proved difficult.
- Pivoting to a Holistic Approach:
- iFarmer recognized the need for a more sustainable and scalable solution.
- They shifted their focus from rooftop farming to a holistic platform that addresses various challenges faced by farmers.
- Current Services:
- iFarmer now offers financing, inputs, advisory services, insurance, and market access to small-scale farmers and Agri Businesses.
- By leveraging technology, they empower farmers and bridge gaps in the agricultural value chain.
Growth
iFarmer is an Agri-Tech/fintech platform that offers farmers with access to finance, training and knowledge and then access to the market. On the other side, they enable any individual to invest their money in a farm (equity financing model), as they work closely with these farmers and enable them to sell to a large buyer (thus eliminating middlemen). They are working with 1200 farmers at this point in time. They have facilitated more than 4 crore takas to these farmers in about 11 months from a few hundred investors.
Expansion
There are about 9 investors but 5 investors here. Latest Deal Type-Later Stage VC, Latest Deal Amount- $2.1M
| Investor Name | Investor Type |
| Biniyog Briddhi | Accelerator/Incubator |
| IDLC Finance | Corporation |
| Millville Opportunities Management | Hedge Fund |
| Zayn Venture Capital | Venture Capital |
| Falcon Network | Angel Group |
Future Plan
iFarmer is strongly committed to implement such a process quickly:
- High quality graded produce
- Fast and Doorstep Delivery icon
- Competitive and transparent pricing
- Fast and Doorstep Delivery icon
- Fast and Doorstep Delivery
- Wide range of products icon
- Wide range of products
- Fast and Doorstep Delivery icon
- Support from financial institutions
- Fast and Doorstep Delivery icon
- Convenient and time saving service
2.Marketing and Advertising
iFarmer: Empowering Agriculture Through Comprehensive Services
- Farm Asset Services:
- iFarmer provides a range of services related to farm assets, including purchasing, advisory, and training.
- These services help farmers optimize their resources, improve productivity, and make informed decisions.
- MSME Loans:
- iFarmer facilitates micro, small, and medium enterprise (MSME) loans for farmers and businesses.
- Access to capital allows them to cover initial expenses, invest in their operations, and enhance returns.
- Insurance and Logistics:
- The platform also offers insurance coverage, mitigating risks for farmers.
- Logistical services ensure efficient transportation and distribution of farm produce.
- Commission-Based Model:
- iFarmer charges a commission from retail investors who participate in funding specific farms.
- Additionally, they earn a commission on the final sales of farm produce.
- This sustainable revenue model aligns with their mission of empowering both farmers and investors.
3.Financing
- iFarmer manage its initial funds with support Toru amount was 70k
- Different stages of fundings
| Deal Type | Date | Amount | Post-Val Status |
|---|---|---|---|
| 6. Later Stage VC | 29-May-2022 | $2.1M | Completed |
| 5. Accelerator/Incubator | Completed | ||
| 4. Early-Stage VC | 23-Dec-2020 | Completed | |
| 3. Seed Round | 01-Sep-2018 | Completed | |
| 2. Accelerator/Incubator | $100K | Completed | |
| 1. Accelerator/Incubator | Completed |
4.Success story of iFarmer
Following Awards & Recognitions claimed iFarmer
- Fintech Award – 2019, Seedstars Summit Asia – 2019,
- Impact Collective Award – 2020,
- ICT Startup of the Year – 2022, The 2022 Meaningful Business 100 – 2022,
- Sankalp Dhaka Awards – 2023, Agri and Farming Award – 2023,
- Standard Chartered Channel i Agro Award – 2023,
- AFI’s Inclusive Fintech Showcase Winner – 2024.
5.Challenges
Challenges in Agricultural Development Amid Shrinking Land
As urbanization and industrialization continue, the availability of agricultural land is diminishing. This poses several obstacles for industrial growth. However, investing in the agricultural sector remains crucial despite these challenges. Unskilled farmers contribute to the complexity, but addressing their needs is essential for sustainable development.
6.Future Plan
- Democratizing Agriculture
- Democratizing Supply Chain
- Democratizing Finance
- Creating Access to Finance for Farmers
- Creating Access to Quality Input
- Improving Access to Market for the Farmers
- Solving inefficiencies in the argi supply chain from farm to market everyday
Conclusion
iFarmer embarked on an ambitious journey with the idea of creating an “Uber for Urban Farming.” However, practical challenges soon surfaced, making scalability unlikely. Undeterred, the founders pivoted to a more effective approach. Their mission now revolves around empowering farmers by providing essential resources, financial support, and knowledge. Access to capital is critical for farmers’ success, and iFarmer facilitates connections with lenders to cover initial capital requirements. Additionally, risk mitigation is a priority, and iFarmer collaborates with insurers to offer coverage. This adaptive and farmer-centric model has attracted investor interest and fueled consistent growth.