DeHaat Agritech Platform - Providing End-to-End Agricultural Solutions to Farmers

DeHaat Agritech Platform - Providing End-to-End Agricultural Solutions to Farmers
Case Code: BSTR585
Case Length: 10 Pages
Period: 2018-2019
Pub Date: 2019
Teaching Note: Available
Price: Rs.300
Organization: DeHaat Agritech
Industry: Agriculture & Forestry
Countries: India
Themes: Innovation, Emerging Technologies, Sustainable Innovation, Rural Markets
DeHaat Agritech Platform - Providing End-to-End Agricultural Solutions to Farmers
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

The Potential for Agri-Tech Startups in India

India's economy was agriculture based and agricultural activities provided employment for 60% of the population. The area under cultivation in India was the second highest in the world at 157.35 million hectares. Hence, there existed a lot of scope for innovative technologies to increase farm yield and also elevate farmers’ lives and livelihood. Most of the farmers had small areas of land for agriculture. As per the rural survey by NABARD, the average land holding was 1.1 hectares in 2015-2016...

Challenges Faced by DeHaat

Farmers in the rural areas were opposed to change and were hesitant to adopt new technologies for cultivation and other farm related activities. The team from DeHaat worked for the initial two years of its founding just to understand how farmers worked in Bihar. The first step taken was to market the agri-output of some of the farmers and get them a better price. But the real problem was the pre-sowing period which was when the farmer had to decide which crop to grow, the crop duration, quality of seeds, and fertilizers to be used. Shashank said,...

The DeHaat Platform

DeHaat used an Information and Communications Technology (ICT) based platform which connected farmers with service providers through the micro entrepreneurs. Through the platform, DeHaat provided the farmers with end-to-end agricultural solutions such as the agri-input distribution, crop advisory services, financial services, and market linkages for the farm product sales and distribution...

DeHaat's Business Model

DeHaat's business model was based on the franchisee concept, wherein the micro entrepreneur invested money on the purchase of agri-inputs and also served as the delivery center for the input products. Incentives were also provided to the micro entrepreneurs for achieving the set targets. Ramesh Sah, Coordinator at DeHaat, Lalsaraiya village, West Champaran, Bihar, said, "I make a monthly income of Rs 18,000 through DeHaat operations, selling farm inputs. My work includes conducting field visits, understanding what the farmer needs and facilitating all the necessary interventions."..

Road Ahead

By the end of 2019, DeHaat planned to foray into farm credit and crop insurance. It also planned to expand into the states of Madhya Pradesh, Rajasthan, and Maharashtra by 2020. By the end of 2021, the company had plans to grow by three to four times its current revenue of Rs 450 million...

Exhibits

Exhibit I: Objectives of DeHaat
Exhibit II: Various Agri-tech Companies in India
Exhibit III: Hurdles Faced by Agri-tech Companies

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