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Home / Knowledge Hub / Case Studies / FarMart

FarMart Raises INR 40 Cr Loan Via Yubi Loans To Expedite Its 20% Growth

The result

  • INR 40 Crores

    Debt Raised

  • 7

    Term Sheets Offered

  • INR 10 Crores Disbursed

    under 2 Weeks

farmart-case-study

  • Yubi Loans

    Product

  • yub-product
    Farmart -case-study

    Company

  • yub-product

    Agri Business

    Industry

  • yub-product

    India

    Location

Farmart-case-study

Anirudh Patil

Head Of Finance (FarMart)

Yubi marketplace helped us formulate our first banking relationship with the best private sector bank in India, opening the gateways of structured banking and lending for us.

About the Company

India’s first SaaS-led B2B food supply platform, FarMart, is bridging the food distribution gap in the country and making the process financially rewarding for the agribusiness community. One of the fastest growing supply chain enterprises, FarMart’s mobile app allows agri-retailers to provide farmers with access to input, advisory, and market linkages.

FarMart is powering the agribusiness in the Subcontinent, thanks to their promise of procuring high-quality graded food grains at the lowest price sans mediators. The company is committed to empower the farmer community with 100% transparency viz-a-viz what the farmers are paid. FarMart’s trusted partners include behemoths like ITC Limited, Britannia Industries, Cargill, Udaan, and Olam.

The Challenge

FarMart works primarily on a trading model with a whopping 20% month-on-month growth. What the company was facing was not a simple cash flow problem- FarMart’s woes were marked by no bank being present on the company’s board. The company had no other non-dilutive debt line, making access to funds a hassle.

Here is a brief overview of the company’s most significant challenges:

  1. To sustain the momentum of this growth and push forward, the company needed to boost its working capital with a debt line.
  2. The company wanted to raise more debt to streamline its working capital and propel its growth.
  3. FarMart exhausted its credit limit and found it an added hassle to engage with another bank. The process was time-consuming, and the never-ending paperwork and long-drawn due diligence were also a hindrance for the company.
  4. The company lacked an in-house financial expert who understood the debt markets and had a network to leverage the right debt deals.

The Solution

The larger goal was to help FarMart liaison with more banks and optimise their needs. Here is how this fared for the company after it boarded Yubi Loans Marketplace:

  1. Yubi Loans helped get FarMart access to the right deals within days of it coming on board the marketplace.
  2. Within two weeks of onboarding, FarMart was disbursed its first loan worth Rs 10 crore.
  3. FarMart was introduced to multiple lenders on the platform. The company received nearly 10 expressions of interest in their deals, including stalwarts like State Bank of Mauritius, HDFC, and Federal Bank Standard Chartered.
  4. Two of the three transactions were completed prior to the Series B round. Before the series B round, we were able to persuade HDFC Bank to take up the proposition and sanction Rs 20Crore.

The Results

Yubi Loans – India’s Largest Corporate Loan Platform helped FarMart in raising access to capital at the right time, which enabled the company to help farmers from 7000 different pin codes, get direct access to markets to sell their produce at the right prices.

farmart-case-study

 

  1. The company was able to establish its first banking relations with HDFC Bank via the Yubi Loans platform. This gave the company access to structured loans at better pricing. FarMart was able to get a loan of 20 crores in almost no time with HDFC Bank.
  2. With a quick onboarding process, the first loan being approved in less than two weeks, and numerous digital facilitations saved them a tonne of time, which helped them to focus on their business.
  3. Through Yubi Loans, FarMart was able to secure 3 loans worth Rs 40 crore in less than 4 months (a loan from Western Capital for Rs 10 crore, a loan from HDFC Bank for Rs 20 crore, and a loan from Vivriti Capital for Rs 10 crore).
  4. Yubi Loans provided FarMart with an ample number of investors, which put the company in a stronger position to choose who it borrows money from.

 

FarMart_Corporate-Loan

 

 

 

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