Indian Agritech Startup Cultivates Farm Investments and Profits

A good business model

Zetta Farms, an Indian agritech startup founded in 2019, has pioneered a unique business model that is proving lucrative for the company and small-scale retail investors.

The Rajasthan-based firm leases farmland from owners across India and manages crop cultivation, promising investors an average 12.5% annual tax-free return under Indian law.

In its most recent financial year ending March 2023, Zetta Farms generated revenue of $6.6 million and a net profit of $360,000 – an over sevenfold year-over-year increase.

The company credits this rapid growth to strong demand from retail investors, with over 5,000 individuals contributing $18 million in capital through Zetta’s online investment platform Growpital.

A growing portfolio

The startup now manages a portfolio of 70 crops across 14 Indian states, spanning 25,000 acres of leased farmland.

This diversification helps mitigate risks like market volatility and weather disruptions that have long plagued India’s heavily fragmented agricultural industry.

Zetta co-founder Rituraj Sharma believes the business can scale exponentially by expanding partnerships with high-net-worth farmers and agricultural collectives.

However, some industry experts question whether the model is sustainable, citing the operational complexities of managing scattered rural farmland across India.

Challenges

The young startup does face regulatory uncertainty, as agriculture investments fall outside mainstream financial oversight.

However, Zetta’s early success in attracting farmer partnerships and retail investors points to innovative new pathways for tech-driven agricultural development in India.

Analysts are watching closely to see if the firm’s field-to-investment model can continue driving profits while improving rural livelihoods.