JM Financial Private Equity fund by investment bank JM Financial has invested Rs 40 crore in agri-machines and tools company Balwaan Krishi, the fund announced in a statement. Balwaan Krishi said the capital will be used to strengthen its brand, enhance marketing efforts, support working capital needs, and expand the distribution network.
Speaking on the investment, Darius Pandole, MD and CEO of Private Equity and Equity AIF at JM Financial, said India has been experiencing a steady decline in the average size of farm landholdings, along with increasing labour scarcity and rising labour costs.
As a result, Pandole said the industry is seeing a rise in small farm tools, driven by increasing farmer awareness enabled by internet penetration. “Backed by futuristic outlook of the two young and third-generation entrepreneurs, Balwaan aims to become a leading farm equipment brand in the country.”
This is the sixth investment from the JM Financial India Growth Fund III, focusing on backing growth-oriented companies in the mid-market space.
The fund aims at enterprises in financial services, consumer, IT/ITeS, infrastructure services and manufacturing sectors. Its existing investments include Aarman Solutions that operates PharmEasy, agri-tech marketplace BigHaatAgro, ad-tech company Silverpush and bottled water brand Clear.
Founded in 2015 by Rohit Bajaj and Shubham Bajaj, Balwaan, the startup offers solutions around pre-sales advisory, selling quality products, post-sales training, after sales service and spares support to farmers.
“The capital infusion and partnership with JM Financial Private Equity will accelerate our current and long-term expansion plans. In line with Balwaan Krishi’s vision, we aim to integrate innovative technology, expand our reach to a pan-India level, and help farmers reduce operational costs through the adoption of farm machinery over the next few years,” said Rohit Bajaj, Co-founder, Balwaan Krishi.
According to an IMARC Market Research report, the Indian agricultural equipment market size reached Rs 1,129.6 billion in 2023 and is expected to reach Rs 2,527.4 billion by 2032, growing at a CAGR of 9.1 per cent during 2024-2032.
