Coimbatore : Coimbatore-based agri start-up VilFresh-Laymen Agro ventures has won angel funding from NAN, co-funded by Upaya social ventures and Sangam ventures with a total funding of Rs 1.1 crores.
Coimbatore : Coimbatore-based agri start-up VilFresh-Laymen Agro ventures has won angel funding from NAN, co-funded by Upaya social ventures and Sangam ventures with a total funding of Rs 1.1 crores. Vilfresh-Laymen Agro Ventures was started by Selvakumar Varadarajan, an academician-turned-entrepreneur in July 2016.
The company was born when Selvakumar's wife Sharmila Durairajan could not find high-quality fresh milk in the city for their two-year old daughter. “We could not find good quality fresh milk for our daughter. We love our villages for their healthy food and lifestyle which is totally lacking in the cities.
It is not that these products are not available but it is the question of reaching our doorsteps. On the one hand, we have our farmers desperate to earn competent prices for their produce, while on the other hand, we urbanites struggle to find farm-fresh produce in the cities, even if you are ready to pay more," said Selvakumar.
This led to the birth of Vilfresh-Laymen Agro Ventures that supplies farm-fresh produce to urban dwellers. In the process, the agripreneur discovered that farmers were selling their products at low or negative margins, in spite of the tremendous hard work and effort put in. He also sensed that there was a vast majority of rural youth who were on the verge of migration because they were unable to make a decent income in their villages.
"It is a three dimensional issue. One end, we have urban consumers who are willing to pay, and farmers and rural youth on the other end. We needed to solve an issue which can provide solutions to all of them. We started with purchasing milk and supplying it to the customers. Milk which is available at 4.30 a.m at the farmer's place will reach the customer before 7.30 a.m. Now the company delivers nearly 40 Agro based product to the urban consumer".
Laymen Agro Tech has transformed lives of rural youth, an example being Maruchamy who was earning Rs.8000 per month. Maruchamy had a dream of building his own house but could not do so since his income was below the expected level. After he joined Laymen Agro, his income levels increased and he started earning Rs.37,500 per month. He could realise his dream after getting a bank loan.
Selvakumar's start-up initiative has touched the lives of many such men and women, and now the company is ensuring 26,000 deliveries per month. When the company was started, it had only three customers. Selvakumar plans to expand to five cities with the funding received from NAN and the co-funders. Tirupur and Madurai are next on the list.
The company was co-founded by Selvakumar Varadaraj and his wife Sharmila Durairaj, and later they were joined by Yashwanth Rangarajan and Suba Sadasivam.
Native angel network's funding is an endorsement to the agro enterprise. Speaking on the funding, Sivarajah R, CEO of Native Lead stated, "Vilfresh-Laymen Agro Tech is a social enterprise which has an environmental-friendly product and there is an increased need in the market for such products. Though there are traditional milkmen delivering milk to homes directly, Laymen does the same in an organised manner.
Milk is packaged in a safe and hygienic way, and fresh milk is delivered to the customer within a few hours. The founder also has good exposure and has developed a cost-effective model for execution, for the last two years. Moreover, the company was evaluated by Upaya social ventures, a US-based firm which was an endorsement, and coupled with other factors, we found the company promising . Major funding is from NAN with co-funding from Upaya and Sangam ventures."