June 28, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Co-founded in 2011 by partners Mark Kahn and Jinesh Shah, Omnivore operates across the Indian investment space focusing on impact venture capital commitments via Seed and Series A rounds for companies in the agtech, food, and sustainability sectors building the future of new systems. 

Omnivore has been a pioneer of investment in agtech in India, having partnered with more than 40 startups making farming more profitable, resilient, sustainable, and climate-proof. And, over the past decade, has been a key player in the remarkable tech-driven revolution taking hold in the country as advances in technology and innovation in agriculture have played a crucial role in addressing the challenges faced by India’s farmers. 

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 firm’s second fund had a final close in April 2019 that raised $82 million, and its third fund – the Omnivore Agritech & Climate Sustainability Fund – was launched in April 2022 with the mission to take action to mitigate climate change or to drive resilience and adaptation in the face of climate change. 

“The greatest risk and opportunity for Indian agriculture are the adverse effects of climate change,” said Mark Kahn, managing partner, Omnivore. ”Our new fund will have a sharper focus on catalyzing climate action in agriculture by funding startups addressing climate mitigation and climate adaptation.”

Carrying forward the goal of focusing on startups developing breakthrough technologies for agriculture, food, climate, and the rural economy, this third fund has received backing from investors including KfW, the Self Reliant India (SRI) Fund, FMO, SIFEM, the International Finance Corporation (IFC) with support from the Bill & Melinda Gates Foundation Inclusive Agritech Facility, Louis Dreyfus Company Ventures, the Dutch Good Growth Fund (DGGF), the Belgian Investment Company for Developing Countries (BIO), and Yara Growth Ventures. 

“We are grateful to our investors who share Omnivore’s vision of making India an agritech superpower which positively impacts the lives of smallholder farmers globally,” said Jinesh Shah, managing partner, Omnivore. 

Already having some of India’s most successful agritech startups in its portfolio, including  DeHaat, Arya, Stellapps, Reshamandi, Ecozen, Aquaconnect, and Pixxel, Omnivore noted that through their third fund they expect to make 25-30 new Seed and Series A investments with initial tickets ranging from $1 million to $5 million addressing key themes such as agrifood life sciences, rural fintech, and climate-smart agriculture. 

However, Omnivore’s successes have also manifested this past year in its execution of two exits that delivered strong returns to their investors. In July 2022, the firm sold its stake in aquaculture IoT startup Eruvaka to Nutreco – a global leader in animal nutrition and aquaculture, representing the largest exit in Indian agritech to-date. 

Omnivore first invested in Eruvaka in 2013, only one year after the company was founded by engineer Sreeram Raavi, who recognized that shrimp farmers were challenged with pond management and began developing IoT solutions to significantly improve their potential for profit. Very quickly, this grassroots startup was met with demand for its technology across multiple geographies including Ecuador, Honduras, and Mexico.

It was a prudent move, as Eruvaka has posted 168.5 percent compounded annual revenue growth since FY2017/18, and has been profitable since 2018/2019.

Then, in March 2023, Omnivore sold its stake in precision sprayer manufacturer M.I.T.R.A to farm machinery giant Mahindra. As M.I.T.R.A was an early pioneer in the Indian agtech space, so was Omnivore, one of the first venture capital investors backing agritech innovators in India, who was one of M.I.T.R.A’s first institutional investors.

Both Bajaj’s and Omnivore’s instincts were spot-on. Between FY2018-FY2022, M.I.T.R.A more than tripled its revenue, expanded its team to more than 200 people, and started exporting its products to global markets. 

At the time, Khan commented, “Through Mahindra’s expansive dealer network, M.I.T.R.A’s cutting-edge technology will now be accessible to horticulture farmers across India. As the first institutional investor in the start-up, this is a very proud moment for Omnivore and for agritech in India.”

~ Lynda Kiernan-Stone is editor in chief 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.

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