Venture capital firm Omnivore has announced the successful first close of its third fund at $150 million, signaling a growing investor interest in clean technology. The Omnivore Agritech and Climate Sustainability Fund, launched in April 2022, aims to support startups developing groundbreaking technologies for agriculture, food, climate, and the rural economy.
Prominent investors in the first close include KfW, the Self Reliant India (SRI) Fund, FMO, SIFEM, the International Finance Corporation (IFC) with support from the Bill and Melinda Gates Foundation Inclusive Agritech Facility, Louis Dreyfus Company Ventures, the Dutch Good Growth Fund (DGGF), the Belgian Investment Company for Developing Countries (BIO), and Yara Growth Ventures.
Mark Kahn, Managing Partner at Omnivore, highlighted the importance of addressing climate change's adverse effects on Indian agriculture, stating, "The greatest risk and opportunity for Indian agriculture are the adverse effects of climate change. Our new fund will have a sharper focus on catalyzing climate action in agriculture by funding startups addressing climate mitigation and climate adaptation."
With the third fund, Omnivore aims to make 25-30 new investments in seed and Series A rounds of agritech startups and MSMEs (Micro, Small, and Medium Enterprises), with initial investment sizes ranging from $1 million to $5 million.
Jinesh Shah, Managing Partner at Omnivore, expressed gratitude to investors who share their vision of making India an agritech superpower with a positive impact on the lives of smallholder farmers globally.
Founded in 2011 by Mark Kahn and Jinesh Shah, Omnivore focuses on funding Indian startups that are shaping the future of agriculture and food systems. The firm has invested in 40 startups to date, including companies like DeHaat, Arya, Stellapps, Reshamandi, Ecozen, Aquaconnect, and Pixxel.
Over the past year, Omnivore has successfully exited two agritech startups. In July 2022, the firm sold its stake in aquaculture IoT startup Eruvaka to Nutreco, a leader in animal nutrition and aquaculture, marking its largest exit in the Indian agritech sector. Later, in March 2023, Omnivore sold its stake in precision sprayer manufacturer MITRA to farm machinery giant Mahindra.
The first close of Omnivore's third fund showcases the growing momentum and investor confidence in supporting agritech and climate-focused startups. With its substantial funding and extensive portfolio, Omnivore is well-positioned to drive innovation and foster sustainable solutions in the Indian agriculture and food sector.