BharatAgri shuts shop after failing to secure new funding round

Agritech startup BharatAgri has shut down operations after failing to secure new funding and sustain its business amid widening losses, Entrackr reported. The move comes as India’s agritech sector faces one of its toughest fundraising periods in years.

“Most of the team was let go, and operations have been winding down over the past few weeks,” a person familiar with the matter told Entrackr, requesting anonymity. The source said the company had struggled for months to raise fresh capital before management decided to gradually scale down operations.

Founded in 2017 by Siddharth Dialani and Sai Gole, BharatAgri provided AI-led farm advisory services and an agri-input e-commerce platform targeting small and mid-sized farmers. Despite building a user base of more than one million, the company struggled to achieve profitability.

Regulatory filings show BharatAgri’s operating revenue fell slightly to ₹5.37 crore in FY24 from ₹5.65 crore in FY23, while net losses widened to ₹22.04 crore from ₹17.89 crore. Total expenses rose to nearly ₹27 crore, driven largely by employee costs and marketing spends.

The company had raised around $6.5 million in September 2021 and an additional $6 million in extended Series A funding in October 2023 from Arkam Ventures, with participation from existing backers India Quotient and Omnivore. However, sources told Entrackr that BharatAgri was unable to close its next round as investor sentiment toward agritech cooled sharply.

“BharatAgri’s growth slowed down over the past year,” another source said. “High customer acquisition costs and low repeat orders made it difficult to keep the business running.”

Queries sent to co-founder and CEO Siddharth Dialani went unanswered, while India Quotient declined to comment.

The closure adds to a growing list of Indian agritech firms — including Fraazo, Otipy, Deep Rooted, and ReshaMandi — that have folded despite raising substantial capital.

Funding in India’s agritech sector has plunged over the past three years. Entrackr data show that total investment in the space dropped 78% from $802 million in 2022 to $178 million in 2023, and fell further to just $96 million in the first half of 2025.

BharatAgri’s shutdown reflects a broader challenge for consumer-facing agritech models that have yet to prove sustainable unit economics. Investors are increasingly shifting focus to B2B agri-supply chains and input distribution models, which offer more predictable margins and scalability.

As the sector consolidates, BharatAgri’s exit highlights how even well-funded startups are struggling to survive in an environment where capital has grown scarce and profitability expectations are rising.