March 15, 2019

Aibono Smart Farming, an AI-driven fresh produce aggregator platform, has raised $2.5 million in early stage funding led by impact investor Menterra Venture Advisors, and including The Artha Initiatives of Swiss impact investor Rianta Capital, Milliways Ventures from Silicon Valley, Rebright Partners from Singapore, and venture capital financier 3one4 Capital.

Founded in 2014 by IIT Madras graduate Vivek Rajkumar, Aibono originally began under the name Aerostructures, and later rebranded as Aibono. Using AI and data science, the company provides small scale farmers with sensors and analytic software to predict harvest volumes as much as 60 to 90 days in advance. It can then process food consumption data, and work with both farmers and retailers to optimize food supplies – syncing supply and demand in real time.

“Aibono pioneers a technology disruption solving the lows yields and sub-optimal price realization for farmers and inconsistent supply of safe fresh produce to consumers,” said Mukesh Sharma, co-founder and managing director, Menterra Venture Advisors.

Although India is ranked second in the world for fruit and vegetable production, more than 30 percent of this output is lost to wastage, due in large part to a supply chain that is overrun with multiple intermediaries. Something that Aibono states its platform can address, while helping farmers get higher prices for their fresh produce.

Aibono’s business strategy is very similar to Waycool, another India-based fresh produce distribution company that raised $2.7 million from Aspada Investment Company in April 2017.

Through its distribution hub in Chennai, Waycool mainly operates in Tamil Nadu, sourcing fresh fruits and vegetables from smallholders and aggregators, or from produce-specific value chain companies to sell through various distribution channels, including retail shops and outlets, hotels, restaurants, and catering operations. By being able to optimize sourcing, target markets, and transportation across distribution channels through its hybrid business model, Waycool is able to minimize the delay between farm and fork.

“Structural challenges in India’s fresh produce supply chain, comprised of multiple intermediaries, leads to significant wastage, lower prices for farmers, and poor quality produce at a high relative price,” said Kushal Agrawal, chief financial officer at Aspada at the time.

Aibono and Waycool are not alone. Other startups addressing the challenges in India’s food supply structure include LEAF, which is focused on carrots, and exotic vegetables; InI Farms, which is centered on pomegranates, bananas, and pineapples; AllFresh, which is focused on apples and citrus fruits; and SV Agri, which is focused on potatoes.

In the midst of growing rivalry, Aibono said it will use the pre-Series A capital raised through this deal to support strategic growth including increasing the number of farmers and retailers engaged with its platform to 2,000 and 1,000 respectively. It is also looking to expand its reach in South India, and to gain entry into more Tier 1 and Tier 2 cities.

-Lynda Kiernan