Agritech – Supply chain business

Agri-Fresh produce(Vegetables& Fruits), supply chain startup serving B2B customers

We intend to raise initially INR 4,89,600/-

- Kishore Kumar P V
Narasimha Reddy K
Overview
 KataKaro is a vegetable& fruits supply chain company, serving in B2B space
 Solving one of the toughest problem in Veg& fruit supply chain - sourcing from farmer to transporting and
delivering to Businesses
 There are Approx 58000 B2B customers present in Bangalore and Vijayawada in the form of retail
vegetable shops, supermarkets(small and large) restaurants, paying guests+ Colleges, food processing
companies etc
 Potential revenue opportunity of Approx USD 2 Billion in these two cities as a whole.
 B2B market is not completely tapped yet in categories like, PG, large supermarkets, college hostels, Food
processing companies, govt institutions etc which gives recurring business unlike retail shops which is
more price sensitive. This is one key area where we are serving.
 KataKaro enhances the revenues of farmers by purchasing at fair rates, which avoids multilayered
middlemen involvement which is a major challenge for farmers today.
The Problem
Problems of businesses (Customers angle):
 Customer feedback:
From the small retail vegetable shop to large chain hotels, today, they are businesses are
Regular issues with wastage,
facing challenges with procuring& transporting from Veg markets or local vendor Ready to pay a rupee high if
 Issues like daily involvement, multiple vendors for collecting all varieties the wastage is less

 Quality and consistency in delivery, hygiene, wastage etc A positive sign that customer
ready to pay for quality
 If they have a single vendor who provides quality produce with consistency, they can save
time and focus on business more which is a major issue
 Common wastage of 10-15% is a revenue loss to any business
 Businesses like Hostels, restaurants, large food chain etc are expecting payment flexibility and Farmer feedback:
Issue with selling price, its
credit period
been majorly decided by
Problems of farmers: middlemen, Farmer want to
see more options/players, so
 Farmers are selling to middlemen and sold at unfair prices most of the times that they can decide whom
to sell at good price
 Farmers lack of awareness on demand and pesticide usage, crop selection etc
A must to solve problem of
 Farmer is unable to sell to the price which is prevailing in market and forced to sell to middlemen this hard worker (Farmer)
The solution
 KataKaro solves this problem by directly sourcing from farmers, grade the material at collection centers
and delivers to B2B customers.
 This process eliminates multiple middlemen in between to bring in cost advantage to farmers and
businesses and effective material handling to avoid wastage, below are few more key advantages
 Customer can order online
 Hygiene in material handling& delivery packaging
 Less wastage
 Ontime delivery
 Payment flexibility to customers (We are trying to partner with Fintech companies who provides credit
window to SMB)
 With above all key advantages, customer can focus on his business than focusing on daily procurement
Opportunity& market
 Vegetable& fruits market size is Approx USD 95 Billion
 Bangalore& Vijayawada being Tier-1 and Tier-2 cities,
market potential estimated approx. USD 2 Billion
Growth rate – Next 5 years and
 Unit level economics are positive and territory wise projected revenue
acquisition already started and aggressive replication
to happen
 Focus on completely B2B – segments like large chain Mothly
businesses, hotels, restaurants, hostels, Govt. Description Per day revenue 1 year 3 years 5 years
Institutions, food processing etc (Low priority to retail
shops as they resell and expect greater price discounts No of Orders 25 1700 50000 175000 250000
and not long term business)
Average per basket
Growth rate projections are more than 200% size in INR 1250 1250 1250 1250 1250
YOY(year on Year) considering the market
opportunity and aggressive growth plans, it can Revenue 31250 2125000 62500000 218750000 312500000
vary if we can rollout quickly to new locations etc

Numbers considering more

than 200% growth MOM&
YOY
 Process flow – From sourcing till delivery
KataKaro collects Vegetables& fruits in larger quantities and it makes financially viable for transport and
deliver to larger audience in B2B space

Collection Distribution
Farmers center
Customers (B2B)
centers
• Farmer connects • Weighing and • Weighing as per • Retail vegetable
to collection collecting order shops
• Payment within • Packaging and • Restaurants& large
centers
24Hrs to farmers labelling each order hotels
• Discuss rates and • Grading& primary • Loading as per order • Super markets
initiate sale to packaging and location basis • Hostels/PG’s
KataKaro • Loading to transport • Food processing
companies

KataKaro passes the price benefit to customers and gives convenience of ordering online, doorstep delivery
and payment flexibility etc
Competitive advantages
Competitive advantages with Farmer ecosystem: (For sustainable procurement)
We help farmers with relevant information regarding
1. Crop selection
2. Suggestions on future vegetable demand
3. Publish govt schemes and information on Katakaro website/App and help farmer Sgrowth
From KataKaro, farmers also get benefitted by above all and loyalty retained towards KataKaro
Competitive advantages in Customer acquisition& retention:
4. Customer can complete the purchase in 3 flips to select and close the order in Web/app (Incumbent players order
process is cumbersome)
5. Seasoned sales team who understands the farmer ecosystem and the business both
6. Our Target segment is still not tapped by competition and churn is minimal as deals are for monthly/yearly due to
business nature (We are not focusing much on retail as its daily negotiation)
7. Payment flexibility in partnership with Fintech - lending firms will add more value to Businesses as they would like
to have credit period for same. But payments to KataKaro are immediate as its online/swipe of card
Competitive Landscape
Present competition are 3-5 companies largely in other region/segment
1. Ninjacart
2. Hyperpure
3. Bigbasket (Recently started B2B)

Key differentiatives are:

4. We deliver to doorstep (Currently Ninjacart has stopped it), KataKaro’s plan is, we will save the logistics cost by
delivering territory wise orders only, out of the boundaries orders will not be accepted as logistically not viable
and request customer to pick up and get the benefit in price for same. With scale, we will revise the delivery plans
as per market needs.
5. 24/7 customer support and farmer helpdesk as well.
6. Can provide comfort factor to customer to give regular business, quality and prices are best.
7. Grip on operations end to end is phenomenal, that will ensure to continue with our growth
 Go-To-Market
strategy
KataKaro’s primary target is B2B segment
Retail
Price: shops
 Prices are very volatile in vegetable& Fruits business as it
is based on season, demand and supply, climatic
B2B conditions etc Restaurants
 Price is decided based market rates on a day prior of sale
customers , large
happens with our prediction analysis hotels,
PG/Hostels
 Vegetables& fruits are daily essentials, hence recurring
business B2B Customers -
Target segment
Sales strategy: Military,
 Direct sales team – Acquisition territory wise Govt
 Retention team to maintain stickiness institutions
via tenders
 Via App/Web
 Territory wise account management/Acquisition is new in
this industry, which ensure area wise complete mapping Food
and acquisition which ensures logistics costs in control processing
companies
 Financial roadmap
 KataKaro operates with 10% margin on average per KG Overall financial roadmap once project
 Breakeven at 11th Month starts - Expenses for Month/Year/3
 Revenue exceeds expenses from 5th month years/5 years
 Hiring will be ongoing as we rollout new locations (Till Sl. Cost/ 1st
2 years) Qty 3 Years 5 Years
No. Material Qty PM year
 May have to raise funds at 4th month (After the seed)
Manpower/PM (Average salary 150000 15 1800000
Revenue projections Per day/month/1/3/5 Years 1 at 20k each) 2 4320000 7200000
below Truck charges (Rs 60000/PM 240000 10 2400000
Per Mothly 2 each) 4 8640000 14400000
Description day revenue 1 year 3 years 5 years Veggies/fruits cost in advance 3 40000 15 600000 1440000
3 2400000
4 Office space 1 20000 2 480000 720000 1200000
No of Orders 25 1700 50000 175000 250000

Packaging material/seal 10000 NA 120000

Average basket size 1250 1250 1250 1250 1250 5 covers/crates etc NA 360000 600000
6 Marketing cost NA 10000 NA 120000 360000 600000
Revenue 31250 2125000 62500000 218750000 312500000
7 Collection centre rent 1 15000 2 180000 540000 1000000
Margin% 10.00% 10.00% 10.00% 10.00% 10.00%
25000 3 300000
8 Distribution centre rent/Advance 1 900000 1500000
COGS(Cost of goods sold) 28125 1912500 56250000 196875000 281250000
9 Miscellanious 1 2000 10 20000 72000 120000
Net Profit 3125 212500 6250000 21875000 31250000 Total Costing --> 482000 6020000 17352000 29020000
Numbers considering the growth MOM Numbers considering the growing expenses
as per business growth/rollout
Team
CEO
Kishore Kumar PV
MBA – Worked in Tata group, Times Internet
as strategic alliances& partnerships specialist

Business Head
COO
Narasimha Reddy K
Movleka D
B. Sc from S V University B.Tech- Computer science
Worked as Quality head at Glaxosmithclane
partner

Sourcing team
Acquisition Retention Operations&
Logistics/delivery
team(TBH) Manager(TBH) support(TBH)
team (TBH)

Note: TBH means– To be hired

Current status
Milestones achieved so far:
 Completed business plan
 Incorporation in progress
 Founding team and executive staff is ready and for few more - hiring in progress
 Home office setup
 Website/App development in progress – Vendors finalizing to be closed
Next step:
 Once we are ready with above basics, we need to start from a geography targeted
 We need to work on website development/ App
 Create opportunities in market and take orders
 Raise funds to enable sourcing , logistics and honor commitments and scale
Funds Utilization from Grant
Recurring Expenditures
1. Manpower (Salaries and Fees) Rs 1,50,000/-
2. Operational expenses like electricity, incubation charges etc.
3. Any other area/activity as deemed necessary
Non- Recurring Expenditures
1. Product Development and Design Rs 3,39,600/-
1.1 Design prototype development
2.2 Lab/ Bench Scale Production
1.3 Trials/ Tests
1.4 Marketing/ Miscellaneous
1.5 Data generation/ data acquisition for ideas

2. Any other area/activity as deemed necessary

Funding Requirement: Rs 4,89,600

Summary
Key business:
• Fresh produce supply chain business – Vegetables& fruits supply in Tier-1 and Tier-2 cities
• Solving the supply chain and logistics issue which helps farmers to get right prices and business gets best
rates and quality graded material
• Businesses are concerned about quality, on time delivery, hygiene etc. there is larger gap and opportunity in
the sector
Funding and usage:
 This is an Opex intensive business as it involves procurement, transport, delivery etc. Fund will be used
majorly for below
o Trucks, weighing equipment’s, packing, grading equipment etc
o Collection center and fulfillment centers rentals/Advances etc
o Employee salaries – Logistics team, business, sourcing team etc
o Capacity building, sales acquisition costs etc
Thank you
- Kishore Kumar PV
- Narasimha Reddy K