Now Reading: DeHaat spins off Honest Farms, raises Rs 35 crore
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DeHaat spins off Honest Farms, raises Rs 35 crore
Agritech firm DeHaat has carved out its consumer food brand Honest Farms into a separate company, DeHaat Consumer Products, and raised Rs 35 crore in a pre-Series A funding round. The round was led by OTP Ventures, with participation from Sadev Capital and Maiuni Ventures. DeHaat remains the majority shareholder. The new entity, incorporated on April 1, holds the Honest Farms brand, intellectual property, employees and procurement operations, with DeHaat co-founder Adarsh Srivastava taking charge as CEO.
Honest Farms currently records monthly sales of about Rs 6 crore, implying an annualised run rate of around Rs 70 crore. The company is targeting Rs 200 crore over the next 15-18 months and plans to expand its retail presence from over 3,000 stores to more than 10,000 stores. The brand offers over 100 products across staples, superfoods and everyday kitchen essentials, sourced from around 10,000-10,500 farmers in DeHaat's network who receive 5-10% higher prices than for conventionally grown crops. Products are marketed as pesticide-free, with testing for residues of around 230-235 pesticides.
Inc42 notes that the parent entity DeHaat turned profitable in FY25, reporting a consolidated net profit of Rs 369 crore, compared with a loss of Rs 1,133.1 crore in FY24. However, it adds that profitability was largely aided by a non-cash gain of Rs 576.1 crore from a change in the fair value of CCPS, excluding this gain, DeHaat would have reported a loss of around Rs 207 crore in FY25. Operating revenue rose 11% to Rs 3,009.9 crore.
Indian Opinion Analysis
Both sources provide a straight factual account of the funding and expansion plans, with no discernible editorial slant. The Times of India leads with the carve-out and the funding round, offering operational detail such as monthly sales, number of farmers, and the 230-235 pesticide tests. Inc42 adds context on DeHaat's overall finances, highlighting that the reported profit is largely due to a non-cash gain and that the startup would still be loss-making excluding that item. This is a supplementary fact, not a critique. The coverage is uniform straight reporting. The key number to watch is Honest Farms' ability to scale its annualised run rate from Rs 70 crore to Rs 200 crore in 15-18 months, a near-tripling that will test execution.
Both sources provide a straight factual account of the funding and expansion plans, with no discernible editorial slant. The Times of India leads with the carve-out and the funding round, offering operational detail such as monthly sales, number of farmers, and the 230-235 pesticide tests. Inc42 adds context on DeHaat's overall finances, highlighting that the reported profit is largely due to a non-cash gain and that the startup would still be loss-making excluding that item. This is a supplementary fact, not a critique. The coverage is uniform straight reporting. The key number to watch is Honest Farms' ability to scale its annualised run rate from Rs 70 crore to Rs 200 crore in 15-18 months, a near-tripling that will test execution.
Coverage: 2 sources, 2 neutral
Sources (2): timesofindia.indiatimes.com (neutral report), inc42.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
