Bangalore: Menterra Social Impact Fund, an impact focused venture capital fund, has announced a new investment in FarmFolks. Artha Venture Challenge, an impact investment initiative of the Singh Family Foundation, has co-invested alongside Menterra.

The Bengaluru-based company is led by Lakshmipriyan V G, a veteran in the Fruit & Vegetable space. Farm Folks is targeting two major problems in the agri space. It is addressing supply chain inefficiencies and information asymmetry to provide fair and consistent market access for small farmers. The company is committed to delivering fresh, high quality produce to end consumers.

FarmFolks currently procures 900 MT of Fruits and Vegetables per month from its associate farmers and delivers it to consumers by partnering with institutions and retailers like Tesco’s Star Bazaar, Big Basket, Namdhari Fresh, Nature Basket, Grofers and Aditya Birla’s MORE. Menterra funding will be used to invest in infrastructure and expand reach to cover additional products and geographies.

Commenting on the investment, A.B.Chakravarthy, Principal, Menterra Venture Advisors says “With growing awareness around pesticide residue free fresh fruit and vegetables, the demand will continue to increase. This is the right time for F&V sector to evolve along the lines of white revolution triggered by Amul with consumers getting quality products and producers getting fair price and market access. We believe in Lakshmipriyan and his team’s vision; they have exhibited strong execution- capability to lead Farmfolks to emerge as one of the promising F&V company in India, while positively impacting lives of small farmers.”

Commenting on the investment, Dr. Audrey Selian, Director-Artha Initiative says “We are delighted to co-invest with our partners at Menterra, in a company that is using both technology and a model of high-touch inputs to increase the income of farmers. This fits well with our vision to empower farmers through more lucrative farming. This creates a win, not only for them, but also for consumers and the market at large.”

Lakshmipriyan V G, Founder of FarmFolks says, “We are working towards getting our farmers to meet global benchmarks. We are also organizing separate groups of Organic Growers to bring them under Organic Certification.” Lakshmipriyan added that “Menterra has already used its networks to unlock talent and debt capital in addition to equity investment. Beyond capital, we appreciate Menterra’s deep understanding of the farming sector. This partnership is perfectly in sync with the way we are looking at farmer engagement and their welfare”.