Bangladesh-based Direct Fresh, a supplier of safe, fresh produce to wholesale markets, retailers, institutional customers and households announced a new unspecified round of investment led by RSA Capital, and including public and private equity investor, Business Research International Corporation Inc., and private equity fund, Razor Capital.
Launched three years ago, Direct Fresh has seen rapid growth amid an industry that is challenged with adulteration issues due to unchecked pesticide and chemical use on India’s farms. Through increased investment in farming, farmer training, and improved distribution, Direct Fresh aims to give its customers, which currently top 20,000 households and institutions including The Westin, Radisson Hotel, and Apollo Hospitals, access to safe and fresh produce at commercial scale.
“It has been quite a journey to get where we are today. We set out with the mission to deliver unadulterated and chemical free produce to the market not really knowing how we would do it but ended up being one of the leaders in producing and selling safe produce in the country,” said Sam Bretzfield, co-founder and chairman of Direct Fresh Limited.
“The fresh produce market in India is estimated at US$20 billion per annum and is currently dominated by the unorganized sector,” said Mr. Jaydeep Mehta, Chairman, Techno Group, which invested $1.5 million in Greencart.in – another online supplier of fresh produce and gourmet foods in India in 2014.
“This sector is not only growing at a fast pace, but also witnessing a marked transformation. More and more consumers are becoming conscious of quality, looking for standardization of products and beginning to enjoy the conveniences of online shopping,”
A New Farming Model
Supported by this new capital, Direct Fresh announced it will be launching a new multi-layered farming model. On a commercial scale, the methodology will allow output to increase by 300 percent from the same area of traditional farmland.
The Direct Fresh Rajendrapur Farm will employ advanced agricultural production methods and practices that will serve as a benchmark for farming in Bangladesh. The site will introduce the use of Azolla – a fern that can grow six times faster than grass that can be substituted as feed for livestock, goats, and chickens at a cost savings of 85 percent.
Vermicompost, a compost created using worms, will be the chief organic fertilizer on the farm and bio-pesticides will be formulated from the animal waste produced by the cattle, goats, and chickens on the farm. The operation is also planning the establishment of a commercial scale hydroponic greenhouse that will grow lettuce, herbs, tomatoes, strawberries, and peppers with the goal of eliminating the need to import these foods from Thailand and India.
“From the very beginning we have succeeded because we used ‘out of the box’ strategies to implement things others failed or found difficult,” said Mishal Karim, Co- founder and Managing Director of Direct Fresh Limited. “We took on challenges, often failed at first but tried again and again till we found the right approach. We launched some compelling business models that delivered results, getting us the traction in the market we see today.”
On the retail side, within months Direct Fresh plans to launch a second online retail site that will directly sell fruit, fish, chicken, beef, and vegetables to online consumers.
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Lynda Kiernan
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