GROWiT: Sales and Revenue Projection for 2022-2023 - B2B and B2C Segments Analysis

GROWiT is a startup founded by Saurabh Agarwal and Akshay Agarwal, brothers and third-generation entrepreneurs from Surat. Saurabh pursued his graduation from Cardiff University in the UK, and later completed an MBA from SP Jain College in Mumbai, while Akshay pursued his master's and graduation degree in Plastic Engineering from the University of Massachusetts near Boston.

The company was founded to address the problem of low technology adoption in Indian agriculture, which has resulted in lower yields and lower profits for farmers. GROWiT provides protective farming and other advice to farmers to help them achieve better yields and better quality products. The company has worked with over 15,000 farmers in 4 states, and has shown significant improvements in crop yields and profits.

AIM

The aim of GROWiT, a startup founded by Saurabh Agarwal and Akshay Agarwal, is to provide innovative solutions to the problems faced by Indian farmers. The founders recognized that Indian agriculture suffers from low technology adoption, resulting in lower yields and profits for farmers. GROWiT seeks to bridge this gap by providing protective farming and other advice to farmers to help them achieve better yields and quality products.

One of the key techniques used by GROWiT is mulching, which has been shown to significantly improve crop yields and profits for farmers. The company has developed a range of mulching products that are designed to retain moisture in the soil, prevent weed growth, and protect crops from pests and insects. By providing these innovative products and services to farmers, GROWiT aims to improve the productivity and profitability of Indian agriculture.

Another important aim of GROWiT is to promote sustainable farming practices in India. By reducing the consumption of water, fertilizer, and pesticides, GROWiT's products and services help farmers to farm more efficiently and sustainably. This not only benefits the environment but also improves the long-term profitability of Indian agriculture.

BUSINESS MODEL

The company's business model consists of three main components:

1. Product Development: GROWiT has developed a range of innovative products that are designed to improve the productivity and profitability of Indian agriculture. These products include mulching films, irrigation systems, fertilizers, and pesticides, among others. The company's products are designed to be affordable and accessible to small and marginal farmers who are the backbone of Indian agriculture.

2. Marketing and Sales: GROWiT markets its products through a network of dealers and distributors who are responsible for reaching out to farmers and promoting the company's products. The company also conducts field trials and demonstration plots to showcase the benefits of its products to farmers. GROWiT has a team of field officers who provide technical support and advice to farmers on the proper use of the company's products.

3. Buyback Scheme: GROWiT has recently launched a buyback scheme where the farmers can sell the used product back to the company. This scheme not only helps farmers to recover some of their investment in the company's products but also ensures that the used products are recycled and disposed of in an environmentally friendly manner.

TARGET MARKET

The company's business model consists of three main components:

• Product Development: GROWiT has developed a range of innovative products that are designed to improve the productivity and profitability of Indian agriculture. These products include mulching films, irrigation systems, fertilizers, and pesticides, among others. The company's products are designed to be affordable and accessible to small and marginal farmers who are the backbone of Indian agriculture.

• Marketing and Sales: GROWiT markets its products through a network of dealers and distributors who are responsible for reaching out to farmers and promoting the company's products. The company also conducts field trials and demonstration plots to showcase the benefits of its products to farmers. GROWiT has a team of field officers who provide technical support and advice to farmers on the proper use of the company's products.

• Buyback Scheme: GROWiT has recently launched a buyback scheme where the farmers can sell the used product back to the company. This scheme not only helps farmers to recover some of their investment in the company's products but also ensures that the used products are recycled and disposed of in an environmentally friendly manner.

SALES AND REVENUE

In the financial year 2022-2023 till date, they have sales of 13 crore rupees. The company has projected sales of 30 to 40 crore rupees, which indicates that they are expecting significant growth in the coming year.

GrowiT generates 60% of its sales from B2B and 40% from B2C. The company's gross margin for B2B is 22%, which is a healthy margin. The net EBITDA for B2B is 5-6%, and the profit after tax is 2-3%. This suggests that the company is running a profitable business in the B2B segment.

In the D2C segment, GrowiT is EBITDA positive but PAT negative. The company burned 1.5 crore rupees last year, which suggests that they are investing in growth and expansion. In March 2022, the company raised 3 crore rupees at a valuation of 50 crore rupees. The company diluted 6% of equity, and the rest 94% is still with the founders.

FUNDING IN SHARK TANKS INDIA

GrowiT participated in Shark Tanks India and the owner asked for 1 crore rupees for 1% equity in the company. Namita and Peyush made an offer of 50 lakhs for 1% equity and an additional 50 lakhs in debt at a 10% interest rate. The pitcher requested to raise the valuation to 75 crore rupees, but Namita and Peyush stuck to their initial valuation of 50 crore rupees.

After some negotiation, the final deal was struck with Namita and Peyush for 50 lakhs rupees in exchange for 1% equity and 50 lakhs debt at a 10% interest rate. It is not mentioned whether the deal was accepted or not, but this proposal could have helped GrowiT secure more funding to accelerate their growth and expansion plans.