BASF Venture Capital (BVC) is investing in Indian start-up UrbanKisaan, which specializes in hydroponic cultivation of various types of vegetables, greens and herbs in tropical urban environments. The move is BVC’s first investment in an early-stage business focusing on India.

Founded in 2017, UrbanKisaan operates several suburban greenhouses and vertical indoor farms in Hyderabad and Bangalore. The company sells fresh produce, some of which is grown directly in shops, in its franchise-owned brick-and-mortar stores and via an app and website. The parties have not disclosed any financial details about the investment.

Hydroponics cultivation
UrbanKisaan has optimized hydroponics technology for use in tropical climates such as India. 

With only one-tenth of the costs, the proprietary technology is significantly more efficient than conventional global standards in hydroponics cultivation. 

The company is also capitalizing on online food retailing, which is booming on the subcontinent. “Our approach in hydroponics enables us to produce our food cost-effectively and with relatively little effort,” says Vihari Kanukollu, co-founder and CEO of UrbanKisaan. 

“Our produce also contributes toward sustainability as it is grown in clean, hygienic farms in and around the city, thus minimizing the total carbon footprint.” 

“Use of IoT (Internet-of-Things)-enabled technology for monitoring the farms ensures pesticide-free produce. The growing demand from our customers shows that our idea is well-received,” he explains.

Adapting to needs
UrbanKisaan’s farms are managed through their proprietary technology. Nutrient content, pH levels, atmospheric humidity, CO2 concentration, light concentration and other vital parameters are controlled and adapted to the needs of the particular plants with an app.

“UrbanKisaan has developed a unique growing method and combines this with a compelling business model for sales,” comments Markus Solibieda, managing director of BVC. 

“AgTech is one of our key investment focus areas worldwide. This includes, in particular, our goal of supporting innovative agricultural and food-related businesses in Asia,” he outlines. 

With the investment from BASF, UrbanKisaan plans to expand its market presence in India further, deploy its farming technology to work with thousands of farmers and bring fresh, local, sustainable produce to urban dwellers.

Optimizing limited resources
The world’s population is expected to reach 10 billion by 2050, while the area available for farming and freshwater reserves are becoming increasingly scarce. 

Hydroponics offers a sustainable way to grow crops without soil and using vertically stacked layers while reducing water usage by about 90 percent. 

Especially in densely populated urban areas, this presents a more efficient way to use limited resources like water, space and workforce. 

Water that the plants do not absorb is captured, purified and fed back into the farm’s water circulation system, minimizing wastage significantly. 

India is the second-largest producer of fruits and vegetables in the world. It is also a large consumer of fruits and vegetables. 

While much of this is through unorganized channels (local vegetable markets, hand-pulled carts and neighborhood stores), organized channels (modern trade and online retail) account for a little over 20 percent of the market. 

Thus, hydroponics is a fast-growing and efficient alternative to traditional supply chains in the organized fresh produce market.