DeHaat Honest Farms, the pesticide-free consumer food brand launched by agritech company DeHaat, has raised ₹35 crore in a pre-Series A funding round led by OTP Ventures. Sadev Capital and Maiuni Ventures also participated in the round, providing the company with fresh capital as it seeks to expand its retail presence, increase consumer awareness around pesticide-free food and introduce new products.
The fundraise comes as demand for clean-label and traceable food products grows in India. Honest Farms says it sources products directly from DeHaat’s farmer ecosystem and subjects every pack to more than 230 quality checks. The company currently sells more than 100 products across over 3,000 retail stores in more than 120 cities, alongside quick-commerce, e-commerce and modern-trade channels.
OTP Ventures Leads ₹35 Crore Funding Round
The ₹35 crore pre-Series A round was led by OTP Ventures, with Sadev Capital and Maiuni Ventures participating.
The funding provides Honest Farms with capital to accelerate its next stage of expansion.
According to the company, the money will primarily be used for three areas:
- Geographic expansion
- Building awareness around pesticide-free food
- New product development
The funding also comes at an important stage for the brand, which is seeking to scale beyond its existing retail footprint and reach more Indian households.
DeHaat Co-Founder Takes Over as CEO
Alongside the funding announcement, DeHaat co-founder Adarsh J Srivastava has been appointed chief executive officer of DeHaat Honest Farms.
His appointment is expected to help the company leverage the wider DeHaat ecosystem as Honest Farms enters its next phase of growth.
The move also brings leadership experience from DeHaat’s larger agritech operation into the consumer-facing food business.
What Is DeHaat Honest Farms?
DeHaat Honest Farms is a consumer food brand created by agritech platform DeHaat.
The company focuses on pesticide-free food products sourced directly from farmers.
Its proposition is built around three key areas:
Direct Farmer Sourcing
Honest Farms says it sources products directly from DeHaat’s ecosystem of more than 13 million farmers.
This gives the company access to a large agricultural network while allowing it to build traceability into its supply chain.
Quality Checks
The company says every product pack undergoes more than 230 quality checks.
Each pack also comes with a pesticide-free certificate.
The objective is to provide consumers with greater transparency about the quality and sourcing of everyday food products.
Consumer-Focused Products
Honest Farms currently offers more than 100 products across categories including staples, superfoods and everyday essentials.
This gives the company an opportunity to build a broader basket of products rather than depending on a single food category.
The Farm-to-Consumer Model
The company’s business model attempts to connect farmers with consumers through a structured supply chain.
Supply Chain
DeHaat farmer ecosystem
↓
Direct sourcing
↓
Quality testing
↓
Processing and packaging
↓
Certification
↓
Retail + digital channels
↓
Consumer
The model is intended to reduce information gaps between farms and households while improving traceability.
Honest Farms Has a Large Distribution Footprint
Despite being a relatively young consumer brand, Honest Farms already has a presence across more than 3,000 retail stores in over 120 cities.
Its products are also available through:
- Quick-commerce platforms
- E-commerce marketplaces
- Modern trade
- Retail stores
The combination of offline and online distribution gives the brand multiple routes to reach consumers.
Company Targets ₹200 Crore ARR
Honest Farms has set an ambitious target for the next 12 to 18 months.
The company aims to increase its annual recurring revenue to ₹200 crore.
To achieve this, it plans to expand its retail footprint from more than 3,000 stores to over 10,000 stores.
Growth Target
Current
↓
3,000+ retail stores
↓
Expansion
↓
10,000+ retail stores
↓
12–18 months
↓
₹200 crore ARR target
Achieving that target would require the company to more than triple its retail footprint while significantly increasing consumer adoption.
Why Pesticide-Free Food Is Gaining Attention
Indian consumers are becoming increasingly conscious of food safety and the quality of agricultural inputs.
Concerns around pesticide residues, chemical exposure, traceability and food adulteration have contributed to growing interest in products positioned as clean-label or pesticide-free.
This trend creates an opportunity for brands that can provide verifiable sourcing and quality information.
However, consumers also remain price-sensitive, which means pesticide-free products must balance quality with affordability.
Traceability Is Becoming a Competitive Advantage
Food traceability allows consumers and companies to understand where products originate and how they move through the supply chain.
For a consumer brand, traceability can help build trust.
It can also allow companies to maintain more consistent quality standards.
Honest Farms is attempting to use DeHaat’s agricultural network as an advantage in this area.
Traceability Model
Farmer
↓
Farm-level sourcing
↓
Quality testing
↓
Processing
↓
Certification
↓
Retail
↓
Consumer
The ability to trace products back through this chain could differentiate the brand from conventional packaged-food products.
DeHaat Gives Honest Farms Access to Farmers
One of the biggest advantages of Honest Farms is its relationship with DeHaat.
DeHaat operates a large agricultural ecosystem connecting farmers with agricultural inputs, advisory services and market access.
Honest Farms can potentially use this network to source products at scale.
This provides an advantage that standalone consumer-food startups may not have.
The Consumer Food Market Is Highly Competitive
Despite the opportunity, Honest Farms is entering a crowded market.
The Indian packaged-food industry includes large FMCG companies, established organic-food brands and newer D2C businesses.
Consumers already have numerous choices across staples, grains, pulses, spices and health-focused products.
Honest Farms will therefore need to differentiate itself through quality, certification, pricing, availability and brand trust.
Clean-Label Brands Are Expanding
The broader clean-food category has attracted several startups.
Brands are increasingly marketing products around concepts such as:
- Pesticide-free
- Organic
- Natural
- Chemical-free
- Clean-label
- Farm-to-table
- Traceable sourcing
The growing number of companies entering these categories indicates rising consumer interest but also increases competition.
Competition Includes Safe Harvest and Farmizen
Safe Harvest is another player focused on pesticide-free staples, grains, pulses and spices.
Farmizen has also developed a farm-to-consumer model centered on chemical-free food production.
The competitive landscape could become more crowded as larger FMCG companies and startups respond to demand for healthier and more transparent food products.
Retail Expansion Will Be Critical
The company’s plan to reach more than 10,000 stores makes retail execution one of its biggest priorities.
Expanding distribution can increase brand visibility and make products easier to purchase.
However, retail expansion also requires investment in:
- Distribution
- Inventory
- Warehousing
- Sales teams
- Retail relationships
- Working capital
The ₹35 crore fundraise will therefore need to support both geographic expansion and operational capacity.
Quick Commerce Offers Another Growth Channel
Quick-commerce platforms have become an increasingly important distribution channel for packaged food.
Consumers can order groceries and everyday essentials within minutes, making the channel attractive for brands seeking incremental sales.
For Honest Farms, quick commerce could help increase availability in major cities while the company expands its physical retail network.
New Products Could Increase Basket Size
Honest Farms plans to invest part of the new capital in new product development.
Expanding the product portfolio can help the company increase the number of categories in which each customer purchases.
For example, a consumer initially purchasing pesticide-free grains could potentially add pulses, spices, superfoods and other everyday staples.
Product Expansion
Staples
+
Pulses
+
Spices
+
Superfoods
+
Everyday essentials
↓
Larger consumer basket
↓
Higher revenue per customer
The success of this strategy will depend on product quality and consumer acceptance.
The Role of DeHaat’s Ecosystem
The relationship with DeHaat could remain one of Honest Farms’ biggest strategic advantages.
The parent ecosystem provides access to farmers and agricultural knowledge that can support sourcing.
It may also help the company develop products based on agricultural supply and consumer demand.
This vertical connection could potentially improve supply-chain visibility as the business scales.
Funding Will Accelerate Expansion
The ₹35 crore investment gives Honest Farms additional financial resources at a critical growth stage.
The company can deploy the capital toward market expansion rather than relying entirely on internal cash generation.
The funding also provides external validation from institutional investors.
However, the company will need to demonstrate that the capital can generate sustainable revenue growth rather than simply increasing its geographic footprint.
Revenue Growth Will Be the Next Test
The company’s ₹200 crore ARR target provides a clear benchmark for its next phase.
Investors will likely watch whether retail expansion translates into actual consumer demand.
Important metrics could include:
- Revenue growth
- Same-store sales
- New-store productivity
- Repeat purchases
- Gross margins
- Customer acquisition costs
- Distribution costs
- Product-level profitability
- Online sales
- Quick-commerce contribution
Scaling Food Brands Requires Strong Unit Economics
Expanding to thousands of stores can increase revenue but may also increase costs.
The company must ensure that each additional retail location contributes positively to the overall business.
Strong unit economics would allow Honest Farms to expand without requiring disproportionately large amounts of additional capital.
Store Expansion Economics
New store
↓
Distribution + inventory costs
↓
Product sales
↓
Gross margin
↓
Contribution margin
↓
Profitable expansion
This will become increasingly important as the company moves from 3,000 to 10,000-plus stores.
Consumer Trust Will Remain Central
Pesticide-free food is a category where trust is particularly important.
Consumers need confidence that products marketed as pesticide-free meet the claims made on their packaging.
Honest Farms’ certification and quality-checking process is therefore central to its positioning.
Maintaining consistent standards as sourcing volumes increase will be an important operational challenge.
Pricing Could Determine Mass Adoption
Clean and pesticide-free products can carry a premium over conventional alternatives.
That can limit adoption among price-sensitive consumers.
For Honest Farms to reach millions of households, it may need to find a balance between quality and affordability.
The scale of DeHaat’s farmer network could potentially help the company achieve efficiencies as volumes increase.
India’s Packaged Food Market Offers a Large Opportunity
India’s packaged-food market continues to expand as urbanization, rising incomes and changing consumer lifestyles increase demand for convenient products.
Consumers are also becoming more interested in the origin and quality of food.
This combination creates an opportunity for brands offering packaged products with stronger sourcing and quality propositions.
What the Funding Means for DeHaat
For DeHaat, Honest Farms provides a route into the consumer end of the agricultural value chain.
DeHaat’s traditional strength lies in serving farmers.
Honest Farms extends that ecosystem toward consumers.
DeHaat Value Chain
Farm inputs
↓
Farmer advisory
↓
Farmer network
↓
Agricultural production
↓
Honest Farms
↓
Consumer products
↓
Households
If successful, this model could allow DeHaat to participate in more stages of the agricultural value chain.
What It Means for Investors
The ₹35 crore round is significant because it gives Honest Farms capital to pursue rapid expansion.
The key question is whether the company can turn its sourcing advantage and clean-food positioning into a profitable consumer business.
The next 12 to 18 months will be particularly important because of the ambitious ₹200 crore ARR and 10,000-store targets.
What It Means for Indian Agriculture
The development also illustrates how India’s agritech ecosystem is increasingly moving beyond farm-level services.
Agritech companies are exploring ways to connect farmers directly with consumers and capture additional value through branded products.
This could create new opportunities for farmers if companies can establish stable sourcing relationships and improve market access.
Key Facts at a Glance
| Metric | Details |
|---|---|
| Company | DeHaat Honest Farms |
| Parent ecosystem | DeHaat |
| Latest funding | ₹35 crore |
| Funding stage | Pre-Series A |
| Lead investor | OTP Ventures |
| Other investors | Sadev Capital, Maiuni Ventures |
| New CEO | Adarsh J Srivastava |
| Farmer ecosystem | 13 million+ farmers |
| Products | 100+ |
| Retail presence | 3,000+ stores |
| Cities | 120+ |
| Retail target | 10,000+ stores |
| ARR target | ₹200 crore |
| Target period | 12–18 months |
| Core proposition | Pesticide-free, traceable food |
Infographic: DeHaat Honest Farms’ Growth Plan
DEHAAT HONEST FARMS
↓
₹35 CRORE
PRE-SERIES A FUNDING
↓
LED BY
OTP VENTURES
+
SADEV CAPITAL
+
MAIUNI VENTURES
↓
NEW CEO
ADARSH J SRIVASTAVA
↓
CURRENT SCALE
100+ PRODUCTS
+
3,000+ STORES
+
120+ CITIES
↓
DEHAAT ECOSYSTEM
13 MILLION+ FARMERS
↓
EXPANSION PLAN
10,000+ STORES
↓
12–18 MONTH TARGET
₹200 CRORE ARR
↓
CORE FOCUS
PESTICIDE-FREE
+
TRACEABLE
+
CLEAN FOOD
The Bigger Picture
DeHaat Honest Farms’ ₹35 crore pre-Series A funding round signals growing investor interest in India’s pesticide-free and clean-label food market. Led by OTP Ventures with participation from Sadev Capital and Maiuni Ventures, the funding will allow the company to expand its retail presence, invest in new products and build awareness around pesticide-free food. The company’s access to DeHaat’s ecosystem of more than 13 million farmers provides a potentially significant sourcing and traceability advantage as it competes with established FMCG companies and emerging food startups. :contentReference[oaicite:0]{index=0}
The company is now targeting ₹200 crore in annual recurring revenue within the next 12 to 18 months while expanding its retail footprint from more than 3,000 stores to over 10,000. Achieving that goal will depend on more than distribution growth: Honest Farms will need to maintain product quality, build consumer trust, manage pricing and demonstrate attractive unit economics. Its progress will also offer a broader indication of whether India’s growing demand for pesticide-free and traceable food can support large-scale consumer brands.
Looking Ahead
Honest Farms’ immediate priority will be to deploy the new capital efficiently while expanding into more cities and retail outlets. The appointment of DeHaat co-founder Adarsh J Srivastava as CEO gives the company leadership closely connected to its farmer ecosystem. If the brand can combine that sourcing advantage with strong consumer demand and efficient distribution, it could establish a meaningful position in India’s clean-food market.
Over the longer term, the bigger opportunity lies in connecting India’s agricultural supply chain more directly with consumers. DeHaat’s farmer network gives Honest Farms a foundation that many standalone D2C food brands lack, but scale will bring new challenges around quality control, logistics and profitability. The company’s ability to reach its ₹200 crore ARR target while maintaining sustainable margins will determine whether this latest funding round becomes a launchpad for a much larger consumer-food business.
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