DeHaat Spins Off Honest Farms, Raises ₹35 Crore to Scale Consumer Food Business
Agritech company DeHaat has separated its consumer food brand Honest Farms into a new entity, DeHaat Consumer Products, and raised ₹35 crore in a pre-Series A funding round as it looks to significantly scale the business.
The round was led by OTP Ventures, with participation from Sadev Capital and Maiuni Ventures. DeHaat continues to remain the majority shareholder. The company has not disclosed its valuation or equity dilution.
The new entity, incorporated on April 1, houses Honest Farms’ brand, intellectual property, employees and procurement operations. Around 70 employees are currently part of the business, with DeHaat co-founder Adarsh Srivastava serving as CEO.
According to Srivastava, the separation reflects the different operating requirements of B2B and B2C businesses and is intended to give the consumer brand a dedicated growth focus.
From ₹70 Crore to a ₹200 Crore Target
Honest Farms currently records monthly sales of around ₹6 crore, putting its annualised sales run rate at approximately ₹70 crore.
The company is targeting ₹200 crore in annualised sales over the next 15–18 months. The fresh capital will support expansion into new markets, wider distribution, brand building and new product launches. Honest Farms currently offers more than 100 products across staples, superfoods and everyday food categories, with pulses forming its largest category. Makhana and jaggery powder are among its other best-selling products.
The brand is currently available in more than 3,000 stores across over 120 cities, in addition to ecommerce and quick-commerce platforms. Its next target is to expand its retail presence to more than 10,000 stores.
Connecting Farmers to Consumers
One of Honest Farms’ key advantages is its integration with DeHaat’s farmer network. Around 10,000–10,500 farmers currently supply produce to the brand. According to the company, these farmers receive 5–10% higher prices than conventional crops, depending on the product.
Honest Farms also markets its products as pesticide-free. Finished products are tested for residues of approximately 230–235 pesticides, with results required to remain within the non-detectable range. Consumers can access the relevant test certificate by scanning a QR code on product packaging.
The carve-out represents a broader evolution in India's agritech sector, where companies are increasingly looking beyond farm-level services and exploring consumer-facing opportunities across procurement, processing, distribution and branded food products.
For DeHaat, the immediate challenge will be converting its existing farmer network and distribution infrastructure into sustained consumer demand while scaling Honest Farms from an annualised ₹70 crore business toward its ₹200 crore target.
Comments