Seeding Prosperity: Shashank Kumar and Team Cultivating Success with DeHaat

In 2011, Shashank Kumar faced a serious question from his concerned father: “Tumse shaadi kaun karega (who will marry you)?” Hailing from a rural farming background in Bihar, Shashank had fulfilled the first part of his father’s expectations by excelling academically, graduating from IIT-Delhi, and working at a consulting firm for nearly three years. However, the second part, leading a non-farming life, seemed to elude him. In an unexpected twist, Shashank chose to return to Bihar and co-founded DeHaat with Amrendra Singh, Shyam Sundar, and Adarsh Srivastav in 2012.

Agricultural Ambitions and Audacity:

Shashank’s background as an IIT graduate raised eyebrows among the farmers he sought to serve. Many of them were unfamiliar with IIT, and those who were found it astounding that someone from an institute like IIT would venture into farming. The challenges seemed insurmountable. Farmers questioned the audacity of a group of young city dwellers who wanted to guide them in cultivating high-value crops.

Shashank realized that the farmers were hesitant to switch to high-value crops, given their long-standing dependence on conventional crops like wheat and paddy. This prompted him to change DeHaat’s strategy, focusing on earning the trust of the farming community. Shashank and his team immersed themselves in the farming process, working alongside farmers to understand their challenges.

During this journey, Shashank made a crucial discovery – the entire agricultural process was broken and fragmented into silos. It was not just about inputs, outputs, or financing; everything was interconnected. Shashank realized that agriculture required a holistic, full-stack solution to make a positive impact on farmers’ lives. Staying bootstrapped and refraining from outside investments for the first seven years allowed DeHaat to refine its business model. This approach helped DeHaat remain focused on building and scaling its operations. Shashank acknowledges that this strategy shielded them from external distractions and provided a clear path for growth.

DeHaat’s patient and focused approach finally paid off when they secured their first institutional round of $4 million in March 2019. Subsequently, the company experienced a funding surge. In April 2020, a $12 million round was followed by a $30 million Series C round in January 2021. Their most significant round came just nine months later, with $115 million led by Belgium-based investment firm Sofina and Lightrock India. This Series D round propelled DeHaat’s valuation to around $450 million, making it the most valued agritech player in India.

The company’s financials reflected its remarkable growth. Operating revenue surged from Rs 42.46 crore in FY19 to Rs 358.2 crore in FY21, with manageable losses. Shashank claims they are on track for over a six-fold growth in FY22. Their monthly revenue ranges between Rs 160 crore and Rs 200 crore. Investors laud DeHaat’s success, appreciating the founders’ rural roots and in-depth knowledge of agricultural challenges. The “phygital” strategy, combining technology and personal touch, has created India’s largest first-mile network for farmers. This approach is poised to revolutionize Indian agriculture by increasing yields, income, and ease of doing business. DeHaat’s holistic approach addresses all aspects of a farmer’s journey, from sowing to harvesting, leveraging technology to ensure scalability. The company is now expanding into overseas markets, thanks to its comprehensive traceability system and digitized farming operations.

Looking ahead, DeHaat is diversifying its services, introducing financial solutions, custom advisory services, and product lines like cattle feed and animal nutrition. Shashank’s focus remains on expanding reach and operations across India. Three key lessons that Shashank has learned from his journey are patience, empathy, and the necessity of a full-stack approach. Farming requires patience and an understanding of the myriad variables that can affect outcomes. Empathy is essential for understanding farmers’ struggles, while a full-stack approach is vital for addressing all aspects of the farming process.