August 3, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Omnivore, an agritech-focused venture capital investor in India, has executed the largest exit in the country’s domestic sector through the sale of its stake in Eruvaka, a developer of cloud-based aquaculture management solutions, including real-time monitoring and smart feeders, to global animal nutrition and aquaculture leader Nutreco.

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.

Eruvaka has posted 168.5 percent compounded annual revenue growth since FY2017/18, and has been profitable since 2018/2019.

That same year, Dutch animal and aquaculture feed specialist Nutreco led an undisclosed Series B for the company that also included a return investment from Omnivore. 

At the time, Nutreco noted the many synergies between itself and Eurvaka, which it recognized as a means to help scale its business across Latin America and Asia. Toward this goal, Nutreco stated in 2018 that its aquaculture unit, Skretting, would work in association with Eruvaka to integrate its technology into AquaSim, Skretting’s line of precision tools that enable shrimp farmers to accurately administer the correct volume of feed at the most optimum times.

Today, Nutreco’s acquisition of Eruvaka will enable Skretting to deliver on-farm software and smart equipment to shrimp farmers on a global scale.

Fulco van Lede, CEO of Nutreco, said, “We are grateful to everyone whose expertise and vision brought Eruvaka to where it is today. In particular, the company’s dedicated employees, its most valuable asset; its founder Sreeram Ravi, who not only invented the original concept but whose vision and drive brought it successfully to market; and aqua/agritech-focused venture capital firm Omnivore, whose early belief and investment in the company were instrumental to its growth. We are looking forward to further developing and growing Eruvaka together with its great team.”

Globally, between 2020-2027, the agritech industry is projected to grow at a CAGR of 12.1 percent, and amid the top countries churning out innovations such as the U.S. and China, there’s India rapidly gaining ground on the world stage. 

Agriculture in India is the main livelihood for nearly 40 percent of the country’s population, accounting for just under 20 percent of the country’s GDP in FY2021. However, there are seemingly built-in hindrances to growth and development for ag in India – a situation that agtech is quickly addressing. Today, there are 1,300 agritech startups in India – a number that is growing every day – innovating new ways to sustainably feed not only India’s population, but the world. 

“Eruvaka is an amazing example of Make in India, delivering cutting-edge agritech solutions to aquaculture farmers globally,” said Mark Kahn, managing partner, Omnivore. “With Nutreco acquiring Eruvaka, the Indian agritech ecosystem has seen its first large exit, and many more will follow in the coming years. This is a very proud moment for Omnivore, for Eruvaka,  and for agritech in India.”

Commenting on Omnivore’s exit to Nutreco, Raavi expressed his gratitude and optimism for the future of the company, saying, “I am extremely grateful to my incredible team in Vijayawada, who believed in the vision and persevered to make Eruvaka a global leader in precision aquaculture technology. We are thankful to Omnivore for believing in us and guiding Eruvaka to this moment. I have absolute faith that Eruvaka will thrive under the leadership of Nutreco, bringing digitization and sustainability to aquaculture farms across the world.”

~ 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.

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