Rajasthan Angel Investment Network (RAIN) has invested in Jaipur based organicshop.in to take 30% of equity (valuing the firm at INR 1 crore). Manuj Terapanthi, CEO & Founder told withstartups that the funds would be used for ” branding, exploring global markets and enhancing customer experience”.
The organic story in India has always evoked mixed responses. On one hand there are frequent reports of unhealthy amount of pesticides & fertilizers beings used in food items and on the other there is the undeniable fact that no entrepreneur has really managed to turn this problem into an opportunity. Consumer questions range from does the higher price tag justify the benefits to how can one be sure that the product is truly organic. Equally important is the fact that organic items are often only available in special stores that are few and at a distance.
Manuj shared his thoughts on why no clear leader has emerged in this sector,
I think the demand and supply gap was the reason. Moreover, customer had 2 major issues. First, is the product really organic and second from where to buy organic products? With the growing demand and awareness for the organic products, things have started looking good. Organic Shop is trying to answer both the issues by offering certified organic products on Pan India basis.
Organic shop offers 1300 organic products in a range of categories from food, cosmetics to health supplements. At present they record 10-12 transactions daily with an average ticket size of INR 550.
Manuj also shared his one tip for aspiring entrepreneurs,
Be focused, have a vision and be passionate about your start-up.
While it remains to be seen how Organic Shop meets the challenges of this sector, it is always good to see the model validation (to some extent) by fund flow.