Agriculture is a process that began centuries ago when humans found a way to regrow any crop or plant that they preferred. India is one country which depends primarily on farming and as per reports of 2018, this sector employed a 50% workforce of the country. Being the largest livelihood provider in the country, especially in rural areas, it contributes significantly to the Gross Domestic Product as well. But off late, the farmer and agri-realty developers have been experiencing roadblocks while trying to sell agri-lands due to lack of liquidity. On the other hand, according to the present trends, High Networth Individual or HNI’s are looking at agri-land investments as an alternative asset, but are facing issues in finding the right lands.
One company that is creating and opening up pathways for this very process is SFarmsIndia. A leading Agri Land Marketplace, it went through multiple phases of testing before being given the command to go ahead.
Story of Inception
SFarmsIndia is a company that required an elaborate plan and in-depth research to find itself at the pinnacle. During the initial days of research, it was found that most property websites across India required a focus on agricultural land. This is where the idea struck, that there had to be a platform for these forms of land as well. Various traditional property websites are a contrast to each other, where the agri-reality exchange market plays a larger part in terms of valuation. Upon further research, it was found that in Telangana alone, for the Fiscal Year 2018-2019, the registration value of agricultural land market size was Rs. 15,000 Cr and the market value stood at 50,000 crores. The area transacted was 3.2 Lakh acre, and this is where things became clear that agri-realty is one aspect left unexplored throughout India.
This identification acted as a catalyst towards the launch of a web application which contained detailed listing and fractional trading functionality. Post rigorously testing the concept, the listing platform’s beta version was launched by the team in July 2018. On this platform, potential buyers can find land, while sellers can list theirs on it. A few types of land listed are agri-lands, estate lands, and eco-farms. This was followed by the launch of the beta version of fractional trading in January 2019. Within this section, agri-lands are divided into smaller tradable fractions which provide flexibility to the buyers. This is especially beneficial for those belonging to the medium to small income groups. These two primary functions can work collectively, and this is helping individuals buy small pieces of agricultural land. It can be traded and is simple as the buyers are in direct contact with sellers, so there is no commission as no middlemen are involved. One of the fundamental USP of SFarmsIndia is the seller being able to finance land fractions digitally.
A Prudent Personality and SFarmsIndia’s Backstory
Kamesh Mupparaju, the CEO of SFarmsIndia has 12 years of trading experience as well as functional experience of trade engine. This turned out to be a plus point when it came to designing and developing a powerful trade engine as well as a robust listing platform. He holds a B.Tech degree in Electronics and Telecommunications from IETE (2004) and an MBA in Finance from Osmania University(2007). His prior work experience involves being an FX Analyst and Dealer at Six Capital as well as a Research Analyst at Religare Commodities. The inspiration behind his company was his father who worked as a farmer and eventually struggled to sell his agricultural land. Being located in the village, there were no buyers due to lack of awareness and the same situation was observed with other farmers as well. Brokers were also another factor of hindrance. This is when it occurred to him that there needs to be an effective system in place for this cause.
The Operating System of the Firm
Being an online web application, SFarmsIndia has two core functions that help in simplifying the processes of the company.
Listing Process– This where the seller enlists on the platform and creates his profile according to the requirements. He can then choose the category under which the land needs to be listed. Once listed, the buyer can search the Agri lands based on the chosen category and contact the seller directly.
Trading Process–The company first establishes an agreement with the seller to issue fractions by digital land contracts against their lands. Following this, they are credited to the agri-realty developer’s wallet on the platform, and the developer can sell directly through the trading platform. Users can either use the site via the web interface or connect through the API to access the trading platform. The trading platform uses a proprietary trading engine that is automated and manually overlooked.
Recognizing these efforts, Szuper Agridigital Solutions Pvt. Ltd that came up with SFarmsIndia found recognition as a start-up by the Department of Industrial Policy and Promotion, Govt. of India., under the Start-up India initiative. The company was also spotted in the Start-up Talky as an agricultural start-up in India.
For more information about the company and its facilities, click here.