Hyderabad-based agritech startup Cornext has successfully closed a seed funding round, raising $2.2 million (approximately INR 18.3 crore), with venture capital firm Omnivore leading the investment. This funding injection aims to propel Cornext’s ambitious agenda of scaling up its annual silage production to 1 million metric tons by 2026, alongside augmenting its research and development initiatives in baling technology.
Established in 2015 by Madhav Kshatriya and Feroz Ahmed, Cornext has carved a niche in the agricultural landscape with its innovative technology that produces compact 50 kg silage bales. These bales are distributed to dairy farmers through a network of village-level fodder entrepreneurs, catering to the critical need for affordable and nutritious cattle feed.
Madhav Kshatriya, co-founder of Cornext, articulated the company’s vision, stating, “Cornext aims to be the go-to company for all things silage. Our institutional clientele to date includes AMUL, SUMUL, BANAS, MILMA, KMF, and many other large dairies and cooperatives. We are excited to have Omnivore’s support and make a positive impact on smallholder incomes and cattle health.”
Jinesh Shah, Managing Partner at Omnivore, underscored the significance of Cornext’s mission in addressing pressing challenges in Indian agriculture. “Cornext is solving one of the most chronic problems in Indian agriculture – affordable cattle nutrition. India’s milk productivity is one of the lowest in the world, mainly due to fodder shortage. Cornext is changing this narrative…”
This funding round arrives at a pivotal juncture for the Indian agritech sector, which is witnessing a surge in investor interest. Noteworthy startups such as Ninjacart, Dehaat, and Cropin are emerging as key players in this burgeoning field. Just recently, Poshn, another agritech startup, secured $6 million in a mixed equity and debt funding round.
Despite a dip in total funding for the sector in 2023, which saw $208 million across more than 28 deals compared to $817 million across over 60 deals in the previous year, optimism prevails regarding the sector’s trajectory. While there has been a broader reduction in funding levels, industry experts remain bullish about the sector’s long-term prospects.
The Indian agritech sector has experienced significant growth, raising over $2.4 billion in funding through 285 deals between 2014 and February 2024, according to Inc42. This robust investment activity underscores the growing recognition of technology’s pivotal role in addressing agricultural challenges and driving sustainable growth in India.