Venture capital Omnivore announces first close of 3rd fund at $150 mn

Venture capital firm Omnivore on Wednesday announced the first close of its third fund for agri-tech and climate sustainability at USD 150 million.

Investors of the first close include KfW, Self Reliant India (SRI) Fund, FMO, SIFEM, the International Finance Corporation (IFC) with support from the Bill & Melinda Gates Foundation Inclusive Agritech Facility, Louis Dreyfus Company Ventures, the Dutch Good Growth Fund (DGGF), the Belgian Investment Company for Developing Countries (BIO), and Yara Growth Ventures.

"We are pleased to announce the first close of the Omnivore Agritech and Climate Sustainability Fund at USD 150 million," Omnivore, Managing Partner, Mark Kahn said in a statement.

The Omnivore Agritech & Climate Sustainability Fund was launched in April 2022 with a focus on startups developing breakthrough technologies for agriculture, food, climate and the rural economy.

Omnivore expects to make 25-30 new investments in Seed and Series A rounds of agritech startups and MSMEs, with initial cheque sizes ranging between USD 1-5 million.

The investment will focus on themes like agrifood life sciences, rural fintech and climate-smart agriculture, the statement said.

"The greatest risk and opportunity for Indian agriculture are the adverse effects of climate change. Our new fund will have a sharper focus on catalysing climate action in agriculture by funding startups, addressing climate mitigation and climate adaptation," Kahn said.

Omnivore raised USD 82 million for its second fund, which had a final close in April 2019. Some of Omnivore's portfolio companies include DeHaat, Arya, Stellapps, Reshamandi, Ecozen, Aquaconnect, and Pixxel.

Over the past year, Omnivore has exited two agritech startups, delivering strong returns to its investors.

In July 2022, Omnivore sold its stake in aquaculture IoT startup Eruvaka to Nutreco, a global leader in animal nutrition and aquaculture, realizing the largest exit in Indian agritech to date.

Later, in March 2023, Omnivore sold its stake in precision sprayer manufacturer MITRA to farm machinery giant Mahindra.

"We are grateful to our investors who share Omnivore's vision of making India an agritech superpower, which positively impacts the lives of smallholder farmers globally," Omnivore, Managing Partner, Jinesh Shah said.