Entrepreneurs Revolutionizing Spice Farming with Improved Prices and Quality Output for Farmers

Raj Kancham and Vivek Radhakrishnan, with a deep-rooted passion for improving the agricultural ecosystem, co-founded Krishikan in 2020. This Bengaluru-based agritech startup is committed to enhancing the entire agri value chain, benefiting everyone from farmers to end consumers. Drawing on their prior experience at companies like Nokia, GE, Honeywell, PSI Data Systems, and Sapient, both founders had previously worked with other agri startups, giving them valuable insights into the challenges and opportunities within the agricultural sector.

Krishikan's primary focus lies in the spice segment, a strategic choice driven by factors such as low output volume but high value. The founders recognized that traditional farming practices in this sector were neither benefiting farmers in terms of output nor fetching fair prices. According to Kancham, the key to successful spice cultivation lies not only in selecting the right seeds but also in assessing the nutrient content of the soil. Krishikan places a significant emphasis on soil health, particularly organic carbon levels, and collaborates closely with research institutions in India to stay updated on the latest advancements in spice cultivation. This knowledge is then shared with farmers, emphasizing the importance of providing the right inputs.

To facilitate this, Krishikan has established partnerships with various companies for procuring seeds, fertilizers, and nutrients. The startup actively engages with farmer groups, offering guidance on critical aspects such as seed quality, optimized fertilizer use, and disease management. Kancham proudly notes that farmers on the Krishikan platform have reduced their input costs by a minimum of 20% while boosting productivity by 12-35%. The company also maintains continuous communication with over 5,500 farmers, helping them closely monitor their crops through a mobile-accessible web-based application.

Challenges abound in the agritech sector, with farmers often hesitant to embrace new practices. Krishikan's approach involves patience and a gradual transition to improved techniques that align with traditional practices. The startup prioritizes incremental changes to earn farmers' trust and ensure successful adoption.

Krishikan's involvement in data collection across various parameters over the past two years positions them well for future data-driven modeling. This strategic focus on data will likely inform their decision-making and further enhance their offerings.

In addition to providing input support to farmers, Krishikan also purchases the spices produced by these farmers. With a growing demand for high-quality spices, especially in the pharmaceutical and food processing industries, Krishikan has formed partnerships with food processing companies, exporters, and pharmaceutical firms. Strict regulations in the export market necessitate stringent control over residue levels in spices, an area where Krishikan excels. They have increased the exportability of their produce from 60% to an impressive 80%, ensuring both predictability and consistency in the industry.

Krishikan's current spice portfolio includes chili and turmeric, and they operate across Karnataka, Andhra Pradesh, and Telangana. They have forged partnerships with approximately 5,500 farmers, covering approximately 10,500 acres of land. While competing with established intermediaries in the spice business, Krishikan's specialization in the spices segment gives them a competitive edge over competitors who treat spices as just another category in their portfolio. The startup has ambitious plans to expand into other spice segments, such as black pepper, cumin, garlic, and ginger.

The Indian spice industry presents significant opportunities, with India being the world's largest producer, consumer, and exporter of spices. Spice production remains robust, and exports have been growing steadily, creating favorable conditions for Krishikan's operations.

Krishikan's business model is two-fold: while they offer free services to farmers, they generate revenue from input providers and customers purchasing their produce. The bootstrapped startup currently comprises a team of approximately 30 members and has secured a modest angel funding round. They are actively exploring opportunities for a larger venture funding round.

Kancham emphasizes the importance of speaking the farmers' language, providing valuable inputs rather than generic knowledge, and building strong relationships within the agricultural community, which forms the foundation of Krishikan's success.