iFarmer: Harvesting New Dimensions & Digitizing Farming Through Evolving Technologies

Fahad Ifaz, the Founder and CEO of iFarmer shares his thoughts and plans for the future with COLORS Magazine, as we mark his story of innovation, resilience, and the promise of a sustainable future for agriculture in Bangladesh, aiming for a global impact.

From humble beginnings and $700,000 seed funding, iFarmer transformed the agricultural landscape, empowering farmers, reducing costs, and embracing new technology. iFarmer’s commitment to building trust, mitigating risks, and reshaping the future of farming is recognized by the startup ecosystem and global investors around the world.

In the heartland of Bangladesh, where fertile fields stretch as far as the eye can see, a quiet revolution has been taking place over the past four years. It’s a story of transformation, empowerment, and the relentless pursuit of a vision that has the potential to change the face of agriculture in this South Asian nation. This is the story of iFarmer, a company that has redefined the landscape of agricultural financing and support.

In the world of business and entrepreneurship, success stories often start with a spark of inspiration, a dash of innovation, and a pinch of determination. For iFarmer, a revolutionary Agri-tech company in Bangladesh, the journey began with a seed fund and a whole lot of confidence.

“After $700,000 of seed funds, we got a lot of confidence. Because once you get the initial funding, you get the confidence that someone else believes in your business and is willing to invest in it. That boosted our confidence,” shares the founder of iFarmer. With this initial vote of confidence, iFarmer embarked on a journey that would not only change the lives of countless farmers but also reshape the agricultural landscape in Bangladesh. 

iFarmer’s initial focus was on financing farmers, providing them with much-needed capital to sustain their operations. But they didn’t stop there. As their confidence grew, so did their ambition. They started opening new verticals and expanding their services to address various pain points in the agricultural sector. “Over these 4 years, we’ve expanded our service offerings for farmers. And that helped us generate more revenue,” explains the founder. Their expansion included buying produce from farmers, selling agriculture inputs, providing timely advisory services, agri machinery services, and making the farmers aware of the importance of insurance. This holistic approach aimed to tackle the challenges faced by farmers at every stage of their journey, from financing to selling their harvest.

iFarmer’s journey was not a solitary one. They were part of a thriving ecosystem of Startup Bangladesh, and this ecosystem played a pivotal role in their success. “Startup Bangladesh was a big support for us as they were a crucial part in the journey of raising the $ 2.1M funds. This certainly helped us to gain more credibility in the industry”, acknowledges the founder. iFarmer, a full-stack agriculture platform has raised $2.1 million in a new financing round as the company looks to maintain its accelerated growth and expand across the country. The round was led by IDLC Venture Capital Fund, the VC arm of IDLC Finance, with participation from Startup Bangladesh Limited, the Bangladesh Government-funded VC firm, and Millville Opportunities, a New York-based hedge fund. The Startup Bangladesh platform also facilitated networking, allowing startups to connect with investors, partners, and other entrepreneurs. This network effect proved invaluable as iFarmer expanded its operations. 

At the heart of iFarmer’s mission lies the empowerment of farmers. They recognized the challenges faced by farmers in Bangladesh, including exorbitant interest rates and the lack of access to quality agricultural products. “The first benefit farmers get by working with us is that we reduce their cost of capital by up to 40%,” reveals the founder. iFarmer not only provides affordable financing but also ensures that farmers have access to genuine agricultural inputs. In a market plagued by counterfeit products, this is a game-changer for farmers.

One of the significant issues faced by farmers in Bangladesh for many years is the lengthy payment process and lack of transparency in pricing when selling their produce. “When a farmer traditionally goes for finance, they go for an informal source like a local trader, whom we call the middlemen. Farmers take money from them, so they have to pay an interest rate of 40% or 60%, sometimes even 100%! And since they’re traders and also give money, they set a rule that the farmers have to sell goods to them at whatever price they offer,” Fahad explains. “But when they sell their products to us, they get paid instantly, and the pricing is transparent,” states the founder. iFarmer’s approach of conducting sorting, grading, and quality-checking in front of farmers ensures fair pricing and instant payments, eliminating the uncertainty that plagues traditional agricultural markets.  

While financial benefits are essential, building trust with farmers remains the cornerstone of iFarmer’s success. By placing farmers at the center of their operations and consistently delivering on their promises, iFarmer built trust that radiated throughout their relationships with investors, partners, and stakeholders.

iFarmer isn’t blind to the challenges faced by the agricultural sector in Bangladesh. Land size is shrinking, and the next generation is increasingly disinterested in farming. “We believe that technology can reduce the time spent farming and increase efficiency,” the founder asserts. iFarmer envisions a future where technology makes farming more attractive to the younger generation, ensuring the sustainability of agriculture in Bangladesh. Technology plays a pivotal role in iFarmer’s vision for the future of agriculture. Through data analysis, iFarmer aims to predict market fluctuations and reduce risks associated with farming. “We’re trying to reduce the cost of farming. By doing that, they’re also increasing the yield,” the founder explains. Furthermore, technology enables traceability, making it possible for consumers to know the origins of their food products, which can lead to increased exports and GDP growth.

The agricultural sector is susceptible to market fluctuations and natural disasters. iFarmer understands these risks and takes measures to mitigate them. “We work with large buyers; we lock the price and make sure the pricing is stable,” says the founder, addressing market risk. Additionally, they provide farmers with advisory services to help them navigate climate-related risks and are working on an insurance policy to further protect farmers from the unpredictable.

The government’s involvement is crucial in transforming agriculture in Bangladesh. iFarmer suggests that the government should simplify information about climate funds and collaborate with agrotech companies. “Another thing the government should do is partner up with agri-tech companies who work for and/or with farmers,” recommends the founder.

Digital literacy is another challenge, and iFarmer is taking steps to make smartphones a necessity for farmers, offering them easier access to services and financial literacy. As iFarmer enters its second phase, the focus remains on direct outreach to farmers through technology. “We’re targeting the early adopters who are already using smartphones for entertainment,” says the founder. By reducing the cost of intermediaries and embracing technology, iFarmer aims to further empower farmers and drive positive change in Bangladesh’s agricultural sector.

The story of iFarmer is not just one of business success but also of transforming lives and revitalizing agriculture in Bangladesh. With innovation, determination, and a deep commitment to farmers, iFarmer is paving the way for a brighter and more sustainable future for the country’s agriculture. As they continue to evolve and adapt, there’s no doubt that iFarmer has a long way to go, and the impact they’re making will be felt for generations to come.