Farmtheory Raises $2 Million in Pre-Series A to Scale Food Waste Reduction and Farmer Empowerment

Bengaluru, India – April 23, 2025 – Farmtheory, an innovative B2B agritech startup revolutionizing India’s food supply chain by reducing waste and boosting farmer incomes, has raised $2 million in a pre-Series A funding round led by Omnivore and BEENEXT in March 2025. This brings Farmtheory’s total funding to $3.6 million, including a $150,000 seed round from Y Combinator in 2020 and a $1.45 million seed round from Merak Ventures in 2024. The Bengaluru-based platform, valued at $15 million, connects 5,000 partner farmers to 2,500 commercial kitchens, redirecting ‘freeform’ produce—edible fruits and vegetables that don’t meet cosmetic standards—to markets, slashing food waste and enhancing farmer earnings by 20–25%.

Founded in 2019 by Arpit Agarwal and Sakshi Agarwal, Farmtheory operates a tech-driven B2B marketplace that sources ‘freeform’ produce directly from farmers across Karnataka, Maharashtra, and Tamil Nadu. Supplying cloud kitchens, catering companies, food processors, and restaurants in Bengaluru and Hyderabad, Farmtheory processes 1,200 tones of produce monthly, achieving a 90% reduction in farm-level food loss. Its AI-powered platform optimizes demand forecasting and logistics, ensuring 20-hour farm-to-kitchen delivery and 15% gross margins. Strategic partnerships with 50+ Farmer Producer Organizations (FPOs) and NGOs for organic waste-to-fertilizer conversion further enhance its sustainability impact.

The $2 million funding will fuel Farmtheory’s expansion into Pune and Chennai, strengthen its tech infrastructure with blockchain-based traceability, and grow its farmer network to 10,000 by 2026. With 70% of India’s $400 billion annual food loss occurring post-harvest, Farmtheory’s model addresses a critical gap, redirecting edible produce to buyers and reducing environmental harm. The company’s app provides farmers real-time market prices and digital payments within 48 hours, fostering financial inclusion and trust, as echoed in X posts praising its farmer-centric approach.

“Farmtheory is transforming the agri-food ecosystem by turning ‘waste’ into wealth,” said Arpit Agarwal, Co-Founder and CEO. “This funding empowers us to scale our platform, reach more farmers, and drive sustainability while ensuring fair incomes and fresher produce for businesses.”

Farmtheory’s impact is profound: it has empowered 5,000 farmers (up from 3,000 in 2024) and served 2,500 kitchens (up from 1,500), with FY24 revenue of Rs.30 crore ($3.6 million) and a target of ₹100 crore ($12 million) by FY26. By minimizing food waste to under 5% at the source, Farmtheory contributes to climate resilience, saving 2,000 tonnes of CO2 emissions annually. Its recognition as a 2024 Technovation Award finalist underscores its role in sustainable agritech innovation.

“Farmtheory’s model is a game-changer for India’s agritech sector,” said Jinesh Shah, Managing Partner at Omnivore. “Their focus on reducing food waste and empowering farmers aligns with our vision for a sustainable food system.”

With plans to expand to 500 districts and partner with 100+ FPOs, Farmtheory is redefining India’s $1 trillion agriculture market, fostering equity, efficiency, and environmental responsibility.