May 13, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Omnivore, a pioneering agtech investor backing breakthrough technologies for agriculture, food, climate, and the rural economy in India with over $300 million in AUM across three funds, has invested $2.2 million of Seed funding in Cornext, a startup solving the fodder deficit for dairy cattle farmers through its patented silage baling technology. 

“I am thrilled by the faith and confidence investors have shown in Cornext’s vision throughout its journey. This milestone validates the potential impact of Cornext’s business model on all stakeholders in the dairy industry,” said Pradeep Dhobale, an advisor to Cornext and the chairman of the Green Entrepreneurship Council of CII-GBC and former director of the board of ITC, Limited.

Silage has not really gained traction in India due to the high costs of its related infrastructure that is not suitable for the country’s smallholder dairy farmers. 

Dr. Bhupendra Nath Tripathi, PhD, FRCPath, England, and Deputy Director General, Animal Science with ICAR, explained in his message in the report Silage Making – An Emerging Enterprise for the Dairy Sector, published by the ICAR- Agricultural Technology Application Research Institute in 2023:

“…dairy farming in India is rapidly evolving to meet the rising demand for milk and milk products. Regardless of being the largest producer, the per-animal productivity (1,600 kgs/animal) is significantly lower than the global average (2,700 kgs/animal). The main factors attributed to this are low genetic potential, poor farm management, and atrocious nutrition.”

“Silage production holds significant potential as an industry and offers an avenue to meet the aspirations of today’s youth in agricultural farming while maintaining their social and cultural ecosystems. Developing entrepreneurship through advanced feed technologies like silage manufacturers is a superior option to be explored.”

In response, Cornext is creating a circular fodder ecosystem serving dairy cattle farmers through its baling technology that makes compact 50-kilogram silage bales which are then sold to dairy farmers through a network of village-level fodder entrepreneurs. 

Founded in 2015 by Madhav Kshatriya and Feroz Ahmed in Hyderabad, the company has launched more than 400 fodder entrepreneurs across India to-date, and has begun exporting its silage baling machines across Asia, Africa, and Latin America. 

“Cornext is solving one of the most chronic problems in Indian agriculture – affordable cattle nutrition,” said Jinesh Shah, managing partner, Omnivore. “India’s milk productivity is one of the lowest in the world, mainly due to fodder shortage. Cornext is changing this narrative, and we are keen to see Madhav and Feroz’s vision come to life.”

The startup’s two founders have collectively more than three decades of industry experience in dairy cattle management and logistics. In 2020, Cornext received the National Best Startup Award in Agriculture-Allied Sectors from the Government of India, and the company is currently serving as a member of the National Advisory Council of India’s Department of Animal Husbandry.

“Cornext aims to be the go-to company for all things silage,” said Madhav. “With this round of funding, we aim to ramp up the yearly silage production to 1 million MT by 2026 and invest in R&D in baling technology.”

“Our institutional clientele to date includes AMUL, SUMUL, BANAS, MILMA, KMF, and many other large dairies and cooperatives. We are excited to have Omnivore’s support and make a positive impact on smallholder incomes and cattle health.”

~ 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. She can be reached at lkiernan-stone@globalaginvesting.com.

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