April 5, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

India-based Omnivore Partners is launching a third fund with a target of $130 million to back tech startups advancing agriculture, food, and the rural economy, including those with a mission to take action to mitigate climate change or to drive resilience and adaptation in the face of climate change. 

Co-founded in 2010 by partners Mark Kahn and Jinesh Shah, Omnivore operates out of offices in Mumbai and New Delhi, focusing on venture capital investments spanning Seed and Series A rounds for companies in the agtech sector including digital platforms, precision ag, IoT, UAVs, remote sensing, and Big Data solutions. The firm also looks for investment opportunities in companies creating branded food products and novel ingredients, along with start-ups looking to improve rural livelihoods with supply chain, water management, and fintech solutions for smallholder farmers.

“This fund will have a sharper focus on catalyzing climate action in agriculture, backing start-ups addressing both climate mitigation like reducing India’s GHG emissions and climate adaptation and resilience like securing a future for India’s farmers,” said Mark Kahn, managing partner, Omnivore.

To-date, the firm has invested in more than 35 startups working to increase the profitability, sustainability, and resilience of agricultural production, and plans to make a further 25-30 investments through this new fund over the course of the next four years. 

“For over a decade now, we have been a part of the evolution of the agritech ecosystem in India,” said Kahn. “Through Omnivore’s investments, we have touched the lives of almost 7 million smallholder farmers, improving their profitability and resilience, while creating value for our investors.  We believe agritech is just getting started and we look forward to supporting a new generation of entrepreneurs building a future for rural India.”

Omnivore’s first fund was launched in 2012, holding a $38.8 million close the following year, at which time the firm’s thoughts turned toward the launch of Fund 2.

The Omnivore Partners India Fund 2 announced its first close at $46 million in February 2018, and a final close at $97 million in April 2019. Upon its first close, Kahn said, “In our first fund, it was 100 percent domestic investors. For the first close of our second fund, we deliberately chose to focus on raising funds from foreign investors. The value add they bring includes defining and measuring impact, focus on environmental and government policies,” going on to add that the firm expected a 50-50 split between domestic investors and existing investors for the second half of the fund.”

Among this roster were BASF, KfW, DGGF, CDC, SIDBI, AXA Investment Managers, FMO, SIFEM, BIO, The Rockefeller Foundation, Ceniarth, Mistletoe, Sonanz, RBL Bank, the Sorenson Impact Foundation, and various family offices.

For Fund 3, Omnivore is expecting a first close by September of this year, and a final close by June 2023.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.