Agricultural Startup GROWiT’s Sales Have Surged By 70% After Shark Tank India

GROWiT is a new startup dedicated to enhancing agricultural productivity and supporting protective farming practices. Their innovative products are designed to cut down the use of water, pesticides, and fertilizers by half. Additionally, these products help to inhibit weed growth. GROWiT claims that their solutions can boost crop yield and quality, leading to an increase in farmers’ incomes by 50% to 100%. To date, they have assisted more than 15,000 farmers in four different states in India. The founders aim to raise awareness about protective farming methods in India while providing farmers with effective tools to improve their harvests. The company is seeking an investment of ₹1 Crore for a 1% stake, which values the company at ₹100 Crores.

Click here to visit their official website: GROWiT

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Saurabh Agarwal and Akshay Agarwal are the founders of GROWiT. Saurabh talked about their background, mentioning that they come from a family of entrepreneurs, being the third generation to run their own business. He completed his studies at Cardiff University in the UK. On the other hand, Akshay has an engineering degree from the University of Massachusetts in Boston, USA.

GROWiT is an Indian company involved in the agricultural sector, specifically focusing on mulching film, which helps farmers improve their crop yields. The mulching market in India is valued between ₹450 to ₹500 Crores but currently serves only about 2% of farmers, indicating a significant growth opportunity. To promote their products, GROWiT has established over 70 demonstration farms to showcase the benefits of mulching. The company is also environmentally conscious, as it buys back used plastic films for recycling, having repurchased ₹40 lakhs worth so far. Their mulching film costs between ₹12,000 and ₹15,000 per acre, and it forms the majority of their revenue, contributing to 80% of sales.

GROWiT reported ₹20 Crores in sales for the financial year 2021-22 and expects to reach around ₹40 Crores by the end of the next financial year, having made ₹13 Crores in the first half of that year. Their sales come mainly from business-to-business (B2B) channels, which make up 60% of sales, while the rest comes from franchises. The B2B sector has a gross margin of about 22%, with a profit margin of 2-3% after expenses, while the business-to-consumer (B2C) model is profitable before expenses but not after. The company raised ₹3 Crores in March 2022, valuing it at ₹50 Crores, with the founders diluting 6% of their ownership for this investment. Overall, GROWiT is positioned for growth in a largely untapped market with a commitment to sustainability.

Namita, one of the investors, was interested in GROWiT because she saw potential in the market. She made the first offer of ₹50 Lakhs (which is 5 million rupees) for 1% ownership in the company. In addition, she offered another ₹50 Lakhs as a loan with a 10% interest rate. She mentioned that she was open to discussing the offer further. Anupam, another shark, liked the idea of helping farmers but didn’t think the business would be successful in the long run. He worried it might become too competitive and decided to back out. Amit felt the same way and also chose to leave the deal. Aman agreed with Anupam and Amit, but he advised the entrepreneurs to think more about how they can help educate farmers.

Peyush was the only one who liked the business. He thought their goals should be more ambitious. He asked Namita if he could join her in the investment offer, which she agreed to. The founders wanted to make a counteroffer, but the sharks decided not to negotiate further. In the end, Saurabh and Akshay, two other investors, joined Namita and Peyush in accepting the deal. A handshake confirmed their agreement.

Our investigation into the company uncovered that their agreement on Shark Tank India with Namita and Peyush was completed after the episode was broadcast. In October 2023, the founders announced a remarkable 70% increase in sales since their TV appearance, and they have achieved positive EBITA for the first time. Saurabh Agarwal mentioned that as of January 2024, the business continues to prosper. He stated that in 2023, they have empowered more than 10,000 farmers.