Farmley achieved Rs 150 cr ARR within 2 yrs, maintains high NPS of 90%: Abhishek Agarwal

Adgully has been turning the spotlight on the entrepreneurs who fought against all odds to bring their dreams to fruition in our special series – START-UP STARS. We at Adgully wholeheartedly support the ‘Vocal for Local’ movement and have been featuring numerous local/ homegrown businesses, brands, and Apps in the country launched in the last few years.

Farmley is a renowned specialist in the domain of dry-fruits and nuts, boasting an extensive network of over 5,000 farmers and producers with whom they have established deep back-end linkages. This strategic partnership ensures that the brand can consistently deliver products free from any form of adulteration. As a full-stack brand, Farmley offers a diverse range of over 150 products, encompassing everything one can imagine within the realm of dry-fruits and nuts.

In an interaction with Adgully, Abhishek Agarwal, Co-Founder, Farmley, talks about his entrepreneurial journey and key learnings. He also shares about the growth of his company and ideas behind the brand.

What inspired the founding of your start-up, and what problem did you set out to solve?

Farmley was founded in July 2017 by Akash Sharma and me with the aim of providing adulteration-free dry fruits and nuts to consumers by building direct links with 5,000+ farmers and producers. Our mission is to offer a diverse range of 150+ products that blend health and taste through creative innovation and R&D. Understanding the supply chain in its complete depth and further sourcing the right quality sets us apart from our competitors. We have set up 5 farm-gate processing units closer to the sources of origin to offer standard-quality products.

How much funding has the company raised, and from which investors?

Farmley has successfully raised $9 million in funding from a group of prominent investors, including Omnivore, Insitor, Alkemi Partners, and DSG Consumer Partners.

What is your business model?

Our business model at Farmley revolves around being a consumer brand that specialises in dry fruits and nuts. We have strategically eliminated multiple layers of middlemen in the supply chain by building deep back-end linkages with 5,000+ trusted farmers and producers over the years. This direct sourcing approach allows us to offer adulteration-free dry fruits and nuts to our customers, ensuring the highest quality products.

To further enhance our value proposition, we have established 5 farm-gate processing units in close proximity to the sources of origin. This approach sets us apart in an otherwise unorganised sector, enabling us to maintain standard quality products while supporting better incomes for farmers. As a full-stack brand, we take pride in offering an extensive range of over 100+ products, encompassing everything imaginable under the umbrella of dry fruits and nuts. Our aim is to become synonymous with excellence in the dry fruits & nuts segment, providing customers with the best products and fostering a strong connection between quality and trust.

Could you provide an overview of your product/ service and its unique features or benefits?

As a full-stack brand, we take pride in offering an extensive range of over 150 products, covering everything imaginable under the umbrella of dry fruits & nuts. Our dedication to innovation is showcased through the world’s first pasta made from makhanas, which is 100% maida-free. This unique product combines health and taste, making it a versatile addition to various eating occasions throughout the day.

Additionally, we have curated our signature dessert, Farmley Date Bites, comprising Almonds, Dates, Honey, Pista, Cashews & Ghee. These bites are not only delicious, but also a perfect blend of health and taste, with no added sugar. Their high fiber content ensures they are filling, providing an instant energy boost and keeping customers satisfied for longer periods.

Farmley continues to work on introducing new-to-market products that leverage product and packaging innovation to deliver exciting, tasty, and healthy snacks to our valued customers across India.

How does your start-up differentiate itself from competitors in the market?

We set ourselves apart from competitors in the market through several distinctive features:

Adulteration-Free Products: We have diligently built deep back-end linkages with 5000+ trusted farmers and producers, ensuring that our dry fruits & nuts are free from any adulteration. This commitment to quality and purity differentiates us from others, providing customers with the assurance of genuine products.

Innovation and R&D: Our focus on creative innovation and extensive research and development allows us to curate unique and innovative products that blend health and taste. The introduction of the world's 1st pasta made from makhanas, which is 100% maida-free, is an example of how we cater to customer needs while maintaining a healthy and delicious offering.

Extensive Product Range: As a full-stack brand, we take pride in offering an impressive selection of over 100 products. Our diverse range covers everything one can imagine under the umbrella of dry fruits & nuts, catering to a wide variety of tastes and preferences.

Organised Supply Chain: By establishing 5 farm-gate processing units closer to the point of sourcing and origin, we have organised an otherwise unorganised sector. This strategic move not only ensures better quality for consumers but also supports farmers by providing them with improved incomes.

What milestones has your company achieved so far, and what are your future growth plans?

Farmley has achieved significant milestones that speak for our success and position in the market. As category leaders on popular e-commerce platforms like Flipkart and quick commerce platforms, we have established a strong market presence and garnered a loyal customer base. Within just two years, we have achieved an exceptional Annual Recurring Revenue (ARR) of Rs 150 crore, setting a benchmark as the first brand in our category to reach such rapid growth. Our dedication to providing high-quality products and innovative offerings is evident in our outstanding Net Promoter Score (NPS) of 90% for our value-added range, well above the industry standard. Moreover, maintaining a repeat order percentage of above 20% demonstrates the trust and satisfaction our customers have in Farmley.

Looking to the future, we have ambitious plans to expand our offline channels, strengthen our healthy snacking proposition through an extensive range and optimised distribution, and explore new opportunities in the international market with a focus on our makhana-based products. Our growth trajectory remains promising as we continue to prioritise customer satisfaction and product excellence.

How has the start-up evolved since its inception, and what challenges have you overcome along the way?

Farmley’s journey began in 2017 with a focus on the B2B model, supplying dry fruits & nuts to renowned private labels like Reliance, Grofers, and DMart. During this phase, we developed strong relationships and back-end linkages with farmers, primary processors, and importers. As part of our commitment to quality and efficiency, we established five exclusive farm-gate processing units, strategically located in different regions, ensuring tight control over the supply chain by eliminating unnecessary middlemen.

In 2021, we made a significant move and launched our own consumer brand. Over the course of two years, we dedicated ourselves to innovation, introducing several in-house value-added products, including the pioneering pasta made from makhanas and our popular Roasted & Flavoured Nuts Range.

Our Go-To-Market (GTM) strategy has been deliberate and effective. We started by penetrating various platforms, becoming the category leaders on Flipkart and Zepto, while experiencing exponential growth on Blinkit and Swiggy Instamart. Expanding into offline markets, we now have a presence in 2,000+ retail outlets across Hyderabad, Chennai, Bangalore, and Delhi NCR, collaborating with prominent modern trade chains like Spencer, Spar, Metro, Reliance, and Nature Basket.

In our offline chains, we have focused on promoting our hero products, strategically choosing relevant territories, and driving tertiary sales through targeted brand awareness campaigns. Our dedication to the brand building has enabled us to establish a premium brand image that resonates with customers, showcasing our commitment to providing pure dry fruits sourced from over 5,000 trusted farmers and producers.

Who are your target customers, and how are you acquiring them?

At Farmley, our target customers are the Masstige segment of dry fruit consumers, aged 25 to 45 years, residing in Tier 1 and Tier 2 cities. Our focus on product innovation, brand building, and running targeted promotional campaigns ensures that we cater to health-conscious individuals seeking premium-quality dry fruits at accessible price points in the Rs 60,000 crore domestic market.

What is the background and expertise of the founding team?

The core team comprises seasoned professionals from diverse sectors. There are six alums from IIT Delhi and Roorkee, who bring unique expertise and experience to the table. Aman Gupta, who heads Marketing and Branding, comes from India’s largest telecom player (Airtel) and has experience of building consumer brands as well as strategising campaigns for over 50 FMCG brands. Rishi Devgan, who leads exports and modern trade, comes from a rich experience at ITC. Pankaj Goyal, who leads online commerce, has over 15 years of experience in scaling up consumer brands in the nutrition and healthy foods category with his strategic thinking and impeccable execution. Sandeep Ganju, who is leading the retail expansion efforts, comes from over 20 years of experience with brands like PepsiCo, Whirlpool, and Airtel.

What is the company’s growth plan and vision for the future?

Farmley’s growth plan and future vision include scaling up in offline channels, expanding the healthy snacking range, and exploring international markets, with a focus on Makhana-based products. We aim to become a leading player in the dry fruits & nuts industry, catering to diverse customer needs while ensuring innovation and quality.

How does the company handle feedback and user/ customer complaints?

At Farmley, customer feedback and complaints are handled by our in-house customer relationship team. They record feedback and complaints in the voice of customer reports. This is then shared with our quality checks and manufacturing teams, who take necessary actions to address the issues and enhance product quality. We prioritise continuous improvement and customer satisfaction.

How does the company measure success, and what are its key performance indicators (KPIs)?

Farmley measures success through key performance indicators (KPIs) such as market leadership on popular platforms, achieving a Rs 150 crore ARR within 2 years, maintaining a high NPS of 90%, and attaining a repeat order percentage above 20%. The company’s focus on product quality and customer satisfaction has led to a significant reduction in ad spending, contributing to its success in the dry fruits & nuts segment.