Two Brothers Organic Farms raises Rs 58.25 Cr in Series A round led by Rainmatter

D2C consumer organic grocery brand Two Brothers Organic Farm  has closed its Series A round of funding, raising Rs 58.25 crore.

The round was led by Rainmatter, an investment initiative by Zerodha, with a total capital infusion of Rs 50 crore. It also saw participation from Raju Chekuri, founder of NetEnrich.

The startup plans to use capital to boost business growth in India and the US, explore demand-side opportunities, and expand supply-side operations.

The latest round of funding follows the organic grocery startup's Rs 14.5 crore pre-Series A round in April 2023, with investments from Bollywood actor Akshay Kumar and cricketer Virender Sehwag.

“At Rainmatter Health, all of us are conscious of our health, and we keep having discussions about food, fitness, nutrition, and health. And we have always questioned stuff like ‘Is the atta we consume safe?’ or ‘Does milk have harmful antibiotics?’ These questions pushed us to find and support Indian startups trying to make Indians healthier," Nithin Kamath, Founder and CEO, Rainmatter said.

"Two Brothers Organic Farms is one such startup. We’ve not only invested in them but also are customers - enabling feedback for them. It's also amazing that the Two Brothers’ team works with small farmers and improves their livelihood,” he added.

Two Brothers Organic Farms, founded by Satyajit Hange and Ajinkya Hange in 2019, is an organic grocery brand offering a variety of products including cultured ghee, herbal ghee, cold-pressed oils, native heirloom flours, natural sweeteners, immunity and wellness supplements, single-origin spices, and native varieties of rice, pulses, legumes, and millets.

The startup caters to around three lakh customers, with a repeat rate of 69%. It reported a growth rate of about 70% year-on-year for the past four years.

It primarily operates online, with a small offline presence contributing 7-10% of sales, while the majority of revenue comes from its website (65%) and online marketplaces (15-20%).

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The startup claims that a majority of its customers are from urban areas, with 45-46% coming from Delhi-NCR, Bengaluru, Hyderabad, Chennai, Karnataka, Maharastra and Mumbai, while the remaining comes from Tier II, Tier III, and Tier IV cities.

Two Brothers Organic Farms works with over 4,800 farmers based in 17 states and territories in India, with a significant concentration in Maharashtra, Karnataka, and Gujarat, covering close to 5,000 acres of farmland.

"We are glad to have like-minded individuals and organisations participate in this fundraising effort who understand and support our vision for organic food business in India and abroad. This funding round will empower us to create an organic ecosystem which sits on the value base of conscious food while it is clean and sustainable," Hange brothers said in a joint statement.

The startup aims to achieve Rs 500 crore in revenue in four years and support over 50,000 farmers.

(Disclaimer: The has been updated to correct factual errors.)