SlideShare a Scribd company logo
for farmers from farmers
Theodore Schultz began his 1979
Nobel Prize lecture by remarking
“Most of the people in the world are poor, so if
we knew the economics of being poor, we would
know much of the economics that really
matters. Most of the world’s poor people earn
their living from agriculture, so if we knew the economics of
agriculture, we would know much of the economics of being poor.”
Who we are?
❖ Founded in 2016
❖ Three co-founders: Alekh, Mehtab and I
❖ Currently operational in three tehsils in two districts of Uttar Pradesh
❖ We make mechanization work for all farmers through easy to use technology
and data based solutions
Our story: Just begun
We work in 100+ villages through three centers
Reduced renting price by
10%+ for farmers
1000+
hectares of land worked
on
1000+ small &
marginal farmers served
25%+
increase in equipment
owners’ income
40+
single women
customers served
100+ registered
equipment owners
1. Information asymmetry
2. Transaction costs
3. Social Barriers
Barriers to agri-machinery rental
markets are not just economic
Our value propositions: Objective and
substantial
Transparent billing:
actual land worked on
Increased income:
By increasing asset utilization rates
Remote tracking:
Track movement, fuel consumed
and land worked on
Access to finance:
To purchase new machinery and
solve working capital issues
Machinery partner
Transparent billing:
actual land worked on
Convenient process:
Book via APP, Kiosk or missed call
On-time farmstep delivery
Gold standard on-time delivery
and quality work guaranteed
Multiple/flexible
payment option:
Pay via Aadhaar pay, card, cash
Farmers
How does it work ?
Frictionless booking
process
Book machinery in <15
sec through APP, kiosk
centers or missed call
Automated workflow
system
Order management
system routes
order to closest
machinery
Guaranteed delivery &
service quality
Ensure machinery
reaches location
through GPS
mapping
Asset-lite and capital-lite
Technology driven
(IoT, remote sensing)
Improved farming equipment
utilization for owner partner
Data driven farming solutions
Partner of equipment owners,
not competitors
How are we different?
Implementation challenges: Multiple but
we think on our feet
• Absence of
digital
payments
• Absence of
higher end
equipment
• Confusion
over land
sizes and
location
• Low adoption
of Smart
phones
IVR based
solution
and
Kiosks
Satellite
based
size and
tagging
Leverage
bank
mitra’s
P2P
micro-
leasing
model
Confidential
Policy expectations
Tax rebates
Income generated through
farming equipments should be
agriculture income prompting
well-off individuals to micro-
lease
Monetization of data
Data generated by market
players like farMart such as geo-
tagged land records, details of
actual cultivators and cropping
patterns
Confidential
Thank you

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ACIAR -IFPRI - Building a machine rental service business in agriculture, Lokesh Kumar, FARMART

  • 2. Theodore Schultz began his 1979 Nobel Prize lecture by remarking “Most of the people in the world are poor, so if we knew the economics of being poor, we would know much of the economics that really matters. Most of the world’s poor people earn their living from agriculture, so if we knew the economics of agriculture, we would know much of the economics of being poor.”
  • 3. Who we are? ❖ Founded in 2016 ❖ Three co-founders: Alekh, Mehtab and I ❖ Currently operational in three tehsils in two districts of Uttar Pradesh ❖ We make mechanization work for all farmers through easy to use technology and data based solutions
  • 4. Our story: Just begun We work in 100+ villages through three centers Reduced renting price by 10%+ for farmers 1000+ hectares of land worked on 1000+ small & marginal farmers served 25%+ increase in equipment owners’ income 40+ single women customers served 100+ registered equipment owners
  • 5. 1. Information asymmetry 2. Transaction costs 3. Social Barriers Barriers to agri-machinery rental markets are not just economic
  • 6. Our value propositions: Objective and substantial Transparent billing: actual land worked on Increased income: By increasing asset utilization rates Remote tracking: Track movement, fuel consumed and land worked on Access to finance: To purchase new machinery and solve working capital issues Machinery partner Transparent billing: actual land worked on Convenient process: Book via APP, Kiosk or missed call On-time farmstep delivery Gold standard on-time delivery and quality work guaranteed Multiple/flexible payment option: Pay via Aadhaar pay, card, cash Farmers
  • 7. How does it work ? Frictionless booking process Book machinery in <15 sec through APP, kiosk centers or missed call Automated workflow system Order management system routes order to closest machinery Guaranteed delivery & service quality Ensure machinery reaches location through GPS mapping
  • 8. Asset-lite and capital-lite Technology driven (IoT, remote sensing) Improved farming equipment utilization for owner partner Data driven farming solutions Partner of equipment owners, not competitors How are we different?
  • 9. Implementation challenges: Multiple but we think on our feet • Absence of digital payments • Absence of higher end equipment • Confusion over land sizes and location • Low adoption of Smart phones IVR based solution and Kiosks Satellite based size and tagging Leverage bank mitra’s P2P micro- leasing model Confidential
  • 10. Policy expectations Tax rebates Income generated through farming equipments should be agriculture income prompting well-off individuals to micro- lease Monetization of data Data generated by market players like farMart such as geo- tagged land records, details of actual cultivators and cropping patterns Confidential