DeHaat’s Honest Farms Raises ₹35 Cr To Expand Retail Footprint, Product Portfolio

DeHaat Honest Farms, the consumer food brand launched by agritech startup DeHaat, has raised ₹35 Cr in a pre-Series A funding round led by OTP Ventures. 

The round also saw participation from Sadev Capital and Maiuni Ventures. 

Alongside the fundraise, DeHaat cofounder Adarsh J Srivastava has been appointed the CEO of Honest Farms to lead its next phase of growth. 

The fresh capital will primarily be used to expand into new geographies, widen the brand’s product portfolio through new product development, and build consumer awareness around pesticide-free food. 

Honest Farms offers more than 100 products across staples, superfoods, and everyday kitchen essentials. The brand said its products are sourced directly from farmers through DeHaat’s network, undergo more than 230 quality checks, and carry a pesticide-free certificate. 

The brand currently sells through more than 3,000 retail stores across over 120 cities, besides quick commerce, ecommerce, and modern trade platforms. 

Over the next 12-18 months, Honest Farms plans to expand its retail footprint to more than 10,000 stores and grow its ARR to ₹200 Cr. It is also looking to reach more than 10 Lakh families over the next 12 months. 

DeHaat began building Honest Farms in 2022 through internal investments before launching it as a consumer-facing brand. The business was carved out as a separate subsidiary, DeHaat Consumer Products, in April this year. 

The consumer business marks DeHaat’s expansion beyond its core agritech operations. Founded in 2012 by Srivastava, Shashank Kumar, Shyam Sundar Singh, and Amrendra Singh, DeHaat provides agricultural inputs, advisory services, credit, and market linkages to farmers. 

It has raised around $247 Mn in total funding to date from investors including Omnivore, Peak XV Partners, Trifecta Capital, Sofina, Temasek, Lightrock and Prosus Ventures and others. 

Honest Farms competes with the likes of Two Brothers Organic Farms, Farmizen, and Safe Harvest in the clean-label and pesticide-free food segment. 

The brand competes with the likes of Two Brothers Organic Farms, Farmizen and Safe Harvest in the clean-label and pesticide-free food segment.

Meanwhile, parent entity DeHaat turned profitable in FY25, reporting a consolidated net profit of ₹369 Cr, compared with a loss of ₹1,133.1 Cr in FY24. 

However, its profitability was largely aided by a non-cash gain of ₹576.1 Cr arising from a change in the fair value of CCPS. In FY24, the company had reported a loss of ₹888.4 Cr under the same head. 

Excluding the fair-value gain, DeHaat would have reported a loss of around ₹207 Cr in FY25. The startup’s operating revenue rose 11% to ₹3,009.9 Cr in FY25 from ₹2,674.8 Cr in the previous fiscal year.

The post DeHaat’s Honest Farms Raises ₹35 Cr To Expand Retail Footprint, Product Portfolio appeared first on Inc42 Media.