What do you get when two IIT graduates ditch the tech tropes and deep dive into the world of dry fruits and nuts? A snacking brand that dominates—Farmley.

When Akash Sharma and Abhishek Agrawal laid the foundation stone of Farmley, they had a clear objective – redefine the Indian snacking space. And, so they did!

If you think they’re just making nuts, think again! By 2023, they hit an ARR of INR 300 Cr, boasting a 400% growth in just two years.

How did Farmley climb the ladder so fast? Buckle up, this is a snack-sized success story you don’t want to miss.

The Farm-Gate Processing Masterstroke

For Akash and Abhishek, the genesis of Farmley was simple but impactful: connect farmers directly with consumers while ensuring premium quality. With over 5,000+ farmer partnerships, Farmley sources its ingredients through a transparent supply chain.

The company’s five farm-gate processing units further enhance quality control by minimizing transportation and preserving freshness at the source. This model not only eliminates middlemen but also ensures fair pricing for farmers—a win-win for all parties.

Can’t be more true to the name, can it?

The best part is the associated farmers have seen a 35% rise in income as Farmley’s value chain has eliminated middlemen and incentivised farmers to grow better quality produce. Further, close to 60% of the workforce at the processing units are women, and the startup has generated over 2.5 L annual employment hours for them.

And, we Indians, love a brand that serves a purpose!

Driving Past The INR 300 Cr ARR Milestone

Farmley’s rapid rise in the snacking industry is built on a combination of robust distribution, strategic digital outreach, and relentless product innovation. Here’s a closer look at the pillars driving their success.

Building An Offline Nutty Empire

“Currently we are sold at over 5,000 retail outlets. We aim to expand our offline presence across 60,000-70,000 outlets. The online channel contributes a large chunk to our business. But, as we scale-up, we expect offline channels to contribute 50% to the overall business soon,” Akash said in an interview.

This extensive network has enabled the brand to penetrate Tier II and Tier III cities, meeting the increasing demand for healthier snacking options in underserved markets.

To support this expansion, Farmley is doubling down on partnerships with regional distributors, focusing on high-margin areas, and introducing smaller SKUs to cater to price-sensitive customers.

Capturing The E-Commerce Wave

Farmley generates significant business from its D2C model, with 35% of repeat orders indicating strong customer loyalty. This is largely driven by a combination of seamless user experience and efficient last-mile delivery systems.

The brand also leverages analytics to target customers based on regional preferences and seasonal demands. For instance, high-value items like flavored almonds see increased demand during festive seasons, while staples like raw cashews are popular year-round.

Driving Revenue Through Hero Products

Farmley’s R&D team works tirelessly to create hero products in each category that stand out in the crowded market. These products resonate strongly with millennials seeking alternatives to traditional fried snacks.

They’ve also ventured into superfood snacks, targeting customers looking for functional health benefits, such as improved immunity and energy. However, bestsellers like honey-coated almonds and masala cashews account for a significant chunk of revenue, reflecting the growing demand for flavored dry fruits.

Currently, the brand boasts 100+ SKUs.

Rahul Dravid Joins The Farmley Family

In a strategic move, Farmley partnered with Rahul Dravid, one of India’s most admired cricketers, as a brand ambassador and investor. Known for his discipline and trustworthiness, Dravid aligns perfectly with Farmley’s ethos of authenticity and quality.

The partnership has been instrumental in enhancing the brand’s credibility and visibility, especially among Tier II and III markets.

“Rahul Dravid brings a legacy of trust, and that’s exactly what Farmley stands for.”

Fueling Growth With An INR 50 Cr Funding Round

In December 2023, Farmley raised INR 50 Cr from Jindal Group with participation from DSG Consumer Partners, Omnivore, and Alkemi Partners to:

💠 Expand offline footprint to tier II and III cities and rural regions

💠 Enter international markets, planning to launch in Southeast Asia, the US, Canada, and Australia

💠 Drive profitability. By FY25, Farmley intends to achieve break-even through high-margin products and efficient operations.

Until the next one!