SFarmsIndia Case Study : ‘Buy land, they are now not making it anymore’ a quote from Mark Twain emphasizes the significance of Agri-Realty and its massive value. Agriculture as an asset type falls beneath the huge funding class of actual belongings which are bodily in nature and grant tough tangible ownership. Agricultural land has grown to be an appealing funding vacation spot for countless reasons. Most necessary of all being the sturdy market fundamentals in the guide of the quarter on each the demand and furnish side.
Increasing population, altering demographics, discounts in arable land, quick urbanization, and local weather trade have led to the elevated demand for agricultural lands. Agriculture lands have outperformed most asset lessons for the duration of history. Specifically on a dangerous groundwork when thinking about volatility.
The NCREIF (National Council of Real Estate Investment Fiduciaries) Index which is the world’s agriculture benchmark has yielded an annual return of 13.69% because 2000 with a well-known deviation of solely 7.58%. This a long way outperforms equities, bonds, and different asset classes. Performance anticipate to enhance in addition over the subsequent decade due to robust demand-supply fundamentals.
Owing to this excessive viable of agricultural land as an investment option. Many HNIs in India fascinate with investing in agricultural land as a choice asset . But are dealing with the situation in finding/searching these lands. Again humans from the mid-income group, although they favor making investments in agricultural land, are now not capable to do so due to the lack of financing facilities. Besides, the farmers and agri-realty builders are additionally going through difficulties to sell agri lands due to lack of liquidity.
At present, there is no liquidity platform to buy/sell agri lands as most of the present actuality portals center on checklist city homes or houses/flats. The complete market untap and most of the transactions occur thru sellers reaping massive commissions and margins.
To resolve these troubles and faucet the market, SFarmsIndia– India’s First Agri Land Marketplace has created a liquidity platform to buy/sell agricultural lands, property lands, eco farms, and farmlands.
How was once SFarmsIndia Started:
According to SFarmsIndia Case Study ,Kamesh, coming from a farmers’ family, had predominant insights regarding the agricultural quarter in India. He located his father, a farmer via occupation battle to promote his agricultural land. Kamesh realized that it used to be in reality difficult to promote his land in view that the land placed in the village, and the attainable customers have been no longer conscious of the sale.
The equal state of affairs has located with some different farmers in the village. Besides, brokers are a dilemma in transactions due to non-transparency. Taking all these into account, it passed off that there must be a gadget in an area that helps human beings like Kamesh’s father.
Kamesh commenced his trip of ideation by using going thru most of the property websites throughout India. From such extreme research, he concluded that there is little or no focal point on agricultural land. And that there is no platform completely for agricultural lands.
Nevertheless, in distinction to normal property websites, the agri truth market is greater in phrases of valuation. As the lookup proceeded, Kamesh located that in Telangana alone, for FY 18-19, the agricultural land market dimension is Rs. 15,000 Cr (registration value), and the market fee would be someplace Rs 50,000 Cr. The place of the transacted land is 3.2 Lakh acres. This is solely in Telangana and thinking about pan India he understood agri realty is a very massive untapped market in India, therefore figuring out the solution.
Going ahead, Kamesh determined to launch the internet application. Which consists of record and fractional buying and selling functionality. For the equal his 12+ years of buying and selling journey and purposeful ride of alternate engine designs. It proved beneficial in designing and creating the change engine and the recording platform. After rigorous testing, he launched the beta model of the recording platform in July ’18 and launched the beta model of fractional buying and selling in Jan’19.
According to SFarmsIndia Case Study , it Launched the stay fractional buying and selling via Feb’19 with an MVP of 1.48 Acres. The bodily land used to divide into 2960 fractions ( 1 Acre= 2000 fractions) and delivered successfully. The enterprise is in negotiations with agri- realty builders to launch huge land parcels. SFarmsIndia went out of beta on May ’19 for the checklist platform and shifting ahead with correct traction.
Once Kamesh developed an appreciation of the repute and the present gaps in the agri fact industry. He mentioned the notion with a crew of farmers at his village. Though there was once some reluctance at the establishment due to apprehensions about the online system. They subsequently like the idea. Farmers’ growing frustration with the middlemen and the delayed technique led farmers to partner with a platform that avoids middlemen and additionally gives wonderful expenditures for the land. As few transactions closed extra farmers joined the platform.
How It Works:
SFarmsIndia is online net programming with two center capabilities- rundown and part exchange. These two highlights work by and large growing tellable cooperative energy.
On the record, stage customers can find/search horticultural terrains and sellers can list/post the agribusiness lands available for purchase /rented. The seller needs to flag up on the stage and pick the class of agri land that cravings to record. When recorded, the buyer can look at the agri lands essentially founded on the picked class and contact the customer straightforwardly. It, along these lines, makes liquidity for looking for and advancing agri lands.
In view of the land kind and usefulness, SFarmsIndia arranges the grounds into 4 sorts which are as per the following:
- Agri Lands – Agriculture Lands, Non-Cultivated Lands, and Fruit Farmlands ,
- Home Lands – Coffee, Tea, and Rubber Estate Lands ,
- Eco Farms-Ecological Sustainable Farms and Farmhouses ,
- Aggregate Farms-Cooperative homesteads and Group ranches.
Division Trading Platform:
SFarmsIndia‘s major USP is that it makes a settlement with the seller (agri-realty designer) to trouble parts via computerized land contract contrary to their territories. The dealers/Agri reality developers can sell their gigantic land bundles utilizing these portions. Each agri land is dole out with a computerized agreement and separated into 2000 portions for every section of land, consequently empowering medium to little benefits organizations to handily assemble lands.
When the portions give, they will credit to the agri-realty engineer’s pockets on the stage, and the designer can advance right away through the trading stage. Purchasers can area orders to buy the portions for whichever rate they experience is correct. The trade motor will regularly suit their request for certain other client’s sets of the opposite nature (BUY versus SELL). All orders saw through the site’s connection point. Clients can both utilize the site through the network connection point or join by means of the API to get passage to the trading stage. The trading stage utilizes a restrictive trading motor that’s mechanized and physically disregarded.
Purchasers are bendy to buy the littlest exchange capable parts of the agri land, and clients can contact them without a moment’s delay to the advertisers thusly no commission. Dealers can post and exchange their agri lands very without issues via giving parts. It’s a shared stage; consequently, no brokers involves.
Innovation is the center of SFarmsIndias‘ business undertaking activities. Utilizing innovation, they mean to establish a gigantic and climate well-disposed stage for agri lands that can push off the mediators who blow up the costs. SFarmsIndia has been approaching slowly and carefully in developing facts out of its vision. Thusly, SFarmsIndia desires to efficiently have cooperation in so far undiscovered agri realty market via modifying how horticultural land execute all through India.
Agri Realty Industry Details:
India nowadays has one of the lowest lands retaining per capita, a decrease from the world average. According to the Agriculture Census, the complete range of operational holdings in India numbered 138.35 million with a common measurement of 1.15 hectares per capita. Of the whole holdings, 85% are in marginal and small farm classes of much less than two hectares.
India is presently the 2nd most populated u. s . a . in the world however with a small land area, smaller than China with a comparable population. In such a situation, farmland has won prominence and is therefore challenging to acquire. The price of land has multiplied from 3-fold to 100-fold upward push for the reason that 2000.
There has been a national spike in the rate of agricultural land due to a range of reasons. All of India’s farmland used to value at over $2 trillion in 2010, and these days it has grown to value around $10 trillion. To put this determination into perspective, it is large than the cost of all the gold ever mined.
SFarmsIndia pursues consumers and marketers of agri lands throughout India. Middle classification to excessive internet really worth traders searching to make investments in agri lands regards a choice asset class. According to the World Bank, India’s center category is about 300 million and about forty million humans make up the greater center class. Their common disposable earnings have grown 12 months after year, main into investment in agri realty. The measurement of the agri land market in India is around $15 billion, which untap due to a lack of liquidity and lack of financing facilities.
Around three million transactions (changing the property rights from one character to the other) took place in FY18-19, and 95% of these transactions took location by means of middlemen. However, with growing digitalization fashion is set to change, and the shift from middlemen to internet systems is inevitable.
Founders of SFarmsIndia and team:
Kamesh Mupparaju is the founder and CEO of SFarmsIndia. Mupparaju has a B.Tech diploma in Electronics and Telecommunications, observed by way of an MBA in Finance from Osmania University. Starting with Religare Commodities as a Research Analyst. Kamesh served many key management roles throughout groups including Padmakshi Financial Services Ltd., the place he served as the Manager of Commodity Operations and Analysis; True Infotech, the place he used to be a Sr Research Analyst.
He then moved on to grow to be an FX Analyst and Dealer at Six Capital, SGX Centre 1. Mupparaju in the end determined to nourish his entrepreneurial competencies and situated ETHEXIndia (India’s first market location for Ethereum Tokens) after he served as a founding Board member of BTCXIndia (the first Bitcoin trade in India) for over four years. He additionally served as the Advisor of Blockonomics earlier than founding SFarmsIndia. SFarmsIndia raised pre-seed funding well worth $50k in July 2018 .
Advisors at SFarmsIndia include-
- 1. Linus Lindgren, marketing consultant for enterprise strategy.
- 2. Siva Sitamraju, Mtech(IIT-D) is a marketing consultant for technology.
SFarmsIndia Actual Meaning:
Most of the massive land banks/land parcels in India are barren lands or non-cultivated lands and most of the farmers in India keep small farms, which cultivate no longer like those in the western countries. The small farms are productive in nature, and SFarmsIndias‘ most important goal is to convert barren lands into produce lands. Hence, the title SFarmsIndia, which capability Small Farms in India.
As SFarmsIndia ventured into a special and untapped market, the tag line used to determine ‘India’s First Agri Land Marketplace’.
SFarmsIndia colorings refer to:
- “S” coloration – Sunlight,
- “Farms” shade – Land,
- “India” coloration – Trees.
Business Model and Revenue Model:
According to SFarmsIndia Case Study , it has a Freemium Model. It prices Rs 2000 for a seasoned account with three months subscription and Rs 5000 for a seasoned plus account with three months subscription. Besides, it additionally has a Fraction Trading Fee, which caps at 0.5%, as a transaction rate on each buying/selling of the fractions.
User Acquisition and Growth :
SFarmsIndia Case Study tells that ,Initially, it created the domestic web page with three easy textual content lines. SFarmsIndia– India’s First Agri Land Marketplace, More small print coming soon!! and Notify Me. Using the ‘Notify Me’ section, they have managed to accumulate emails of a few early adopters.
Later, Kamesh immediately reached out to shoppers by means of agri land meetups, agri tech launch pads, agriculture events, etc. the place he shared his ideas and thoughts about the product and requested them to register for the beta launch. He then went to his village to get fascinated dealers onto the platform thru direct contact.
In order to keep its customers, SFarmsIndia organized a beta launch celebration in an eco-farm in Hyderabad after it reached a hundred signup points. For the party, the agency invited all its contacts, early signup customers, etc. It was once a variety of meetups, the place SFarmsIndia amassed first-rate statistics of the on-hand agri lands. Further, it additionally opened a patron provider desk and did outbound calls for listings. Simultaneously it started out promoting thru the Google Ad network, SMS network, and social media. SFarmsIndia has spent around two million INR on advertising and marketing and promotions.
Startup Challenges | SFarmsIndia Case Study :
Most of the farmers and Agri Realty builders are now not science literates to listing their listings on the internet platform directly. Hence, SFarmsIndia has confronted challenges in phrases of getting retailers onto the platform. To overcome this, the business enterprise has created a WhatsApp listing.
Awards | SFarmsIndia Case Study :
Super Agridigital Solutions Pvt. Ltd, the corporation in the back of SFarmsIndia, diagnosed as a Start-up. Its by means of the Department of Industrial Policy and Promotion, Govt of India below Start-up India initiate.
Future Plans | SFarmsIndia Case Study :
According to SFarmsIndia Case Study ,It has received traction with over 5000 signups, over 1300 listings, and over 200 offers altering hands. Added to this, over 2960 fractions equal to 1.48 acres trade and delivered. It is the sole platform in India unique for agri lands the place agricultural lands can list and traded. Therefore, SFarmsIndia has the chance to faucet at least 10% of the estimated $15 billion Indian agri realty market.
In the brief term, SFarmsIndia envisions getting the best range of listings in their list platform for Agri-Realty. And it creating a special market. That is an intersection of Agritech, Agri-Realty, and Online Marketplace for shopping for and promoting Agri lands. Over the long-range, SFarmsIndia‘s ambitions end up the most revered and depended on the company. Its for on-demand trading/liquidity options in the Agri-Realty market and faucet at least 10% market share in Agri Realty.