February 26 2016 : Deccan Herald
GS Farm Taaza Produce, a fresh produce supply chain management company, an wholly-owned B2B subsidiary of Gram Suchana Solutions, plans to raise Rs 40 crore to upgrade technology.
“We are in discussions with a few investors, wherein we are planning to raise $6 million (around Rs 40 crore) for Series A, hoping by April-May. The funds will be used mainly to drive technology to the next level and revamp infrastructure (collection centres),” GS Farm Taaza Produce CEO Kumar Ramachandran said.
Farm Taaza, which began its operations in August 2015, has 130 employees, including contractors. It sources fruits and vegetables from 200 registered farmers, and delivers the same to kirana, retail and HoRECA (hotel, restaurant and catering companies) in Bengaluru, Hyderabad, Chennai, Mysuru, Mangaluru and Coimbatore.
He said, “We started with modern retail, and then we expanded to kirana stores, and then moved to HoReCa. Now if you take modern retail, like Big Bazaar, Spar, HyerCity, Heritage, FoodWorld, and Spencers — they all buy from us.” “By next March, around 30 per cent of our revenues should come from modern retail and the other 70 per cent has to come from the kirana and HoReCa business,” Ramachandran added.
He said, “My friends from the US and Europe have invested around $1.5 million into the parent company — Gram Suchana, and from there, we have invested around $1 million into Farm Taaza.”