Hosachiguru was founded in 2015 by three engineers who left their well-paid IT jobs to do farming on the outskirts of Bengaluru.
It sounds romantic and the founders were also well aware that they were about to romance their clients’ self-owned farm.
Sriram Chittalur, Co-founder and Director, Hosachiguru told BusinessKhabar,
“Owning a farm is an emotion… People talk about how their grandparents had farms where they used to travel during the holidays. Most youth today aspire to own farms, but it is always a challenge to find a farm. What to develop, how to manage the land and so on are many parts, and no company distributes Agri as a service. We wanted to change that. “
Hosachiguru is an amalgamation of the Kannada words Hausa (new) and Chiguru (‘shoot’). Together they do gentle farming.
Agri Asset Management Company provides Farm-A-Service to those who want to invest in agriculture for long-term wealth gains.
The Bengaluru-based startup helps them to do farming and earn income on their produce. In return, Hosachiguru relies on a land fee (Rs 60 per square foot) and an annual agricultural maintenance cost (the services they avail) from their customers.
Sreeram, who leads Hosachiguru’s agricultural operations, says
“About 10 years ago, I and co-founder Ashok Jayanti wanted to buy a piece of land for themselves. But the search was difficult. Farms were either too large or too high priced or too far away. It was a crisis, but we could turn it into an opportunity. We institutionalized the company five years ago to design, develop and manage farms in a sustainable and economically viable way. “
Today Hosachiguru manages over 1,000 acres of land across 20 farms in Karnataka and wants to close this year with a turnover of Rs 50 crore. It also claims to generate employment for more than 500 local farmers and more than 100 contract laborers and helps reduce rural migration.
Farm management process
The process begins for Hosachiguru cherry-farming farms, based on key parameters for their buyers, including land type, soil type, water availability, irrigation system and connectivity.
Buyers can choose the size of the land (0.25 acres, 0.5 acres, and 1 acre each), priced from Rs 10 lakh to Rs 32 lakh. Once they become land-owners, they can select crops (seasonal fruits and vegetables) and wood (teak, sandalwood, mahogany, melia dubia) that they want to cultivate on the plot.
Hosachiguru offers a suite of high-tech farm services, including farming, soil management, drip irrigation systems, fertilizer-free crop maintenance, agribusiness, the creation of weekend cottages and gated farming communities and distribution of harvesting and production.
Shriram explained in detail,
“We purchase arable land after thorough analysis of area, surroundings and soil types. India has such a diverse topography that a 100-acre field will have five different soil types. Depending on soil and weather conditions, we assist our landowners with farming. The entire process focuses on sustainability. We help conserve soil, reduce carbon footprint and prevent the use of harmful chemicals on crops. “
All Hosachiguru farms are equipped with 24/7 drone monitoring and security, remote IoT sensors, high-speed irrigation units, power supplies, rainwater harvesting systems, seesaw, bicycle tracks, work-to-farm facilities, campus farming quarters Huh.
The startup claims that it is able to bring the cost of setting up a farm to 70 percent compared to a farmer.
Hosachiguru also helps landowners earn 20–30 percent more for their produce, which is sorted, classified, packaged and distributed by the company.
Customers get a single dashboard access to track their fields and remain abreast of key agricultural matrices such as soil moisture, wind velocity, rain, crop cycle, expected yield and areas requiring attention.
“The platform provides customers with on-farm visibility. Each farm is mapped to its actual size and shape. We take advantage of Google Earth and other mapping technology to give them a 360-degree view. They can access all farm data, images and videos on the dashboard. Owners can also manage their farm documents using our technology. We have now enabled online farm registration. Therefore, you should not visit the farm before booking it. “
Business model and development
The startup has a three-dimensional business model.
It earns a fee on the land it sells and also provides annual agricultural management services. In addition, it accounts for 30 percent of the revenue that farm-owners earn from selling their produce.
Hosachiguru also earns revenue by selling plants grown in his nurseries. It manages $ 7 million of agricultural assets and claims to grow at a rate of 30–40 percent per year.
According to the founders, the epidemic has positively impacted their businesses.
Sreeram says, “We have sold 45-50 acres of land in the pandemic. More people now want to spend time in the forest. We are building a work-to-farm concept and providing the necessary infrastructure. We are also building a five-acre Permaculture Garden, where they can grow plants throughout the year and watch as an agrofest grows. “
In the last five years, Hoshchiguru’s customers usually included IT crowds from nearby Bangalore. But later more diversity came.
The founder says
“There are many young professionals who want to invest in agriculture and build long-term wealth. These are businessmen who don’t have the time to manage the land. The common formula is that most buyers are nature-savvy and they are environmentally friendly.” Want to protect. “
Hoshichiguru plans to build hospitality and ecotourism on his farms as demand for sustainable practices and weekend getaways increases.
“We will have 5,000 acres of land in the next three years and we are also growing in coffee and tea gardens,” says Shriram.
The startup has raised undisclosed funds from Prestige Group CEO Venkat Narayan. It is now looking to add “trusted investment partners” to expand operations.
Hosachiguru is trying to get new farms in the neighboring states of Telangana, Andhra Pradesh and Tamil Nadu, where agricultural ownership laws are more relaxed and allow people with agricultural backgrounds to occupy their land.
Agri-asset management is still a fairly new market in India, with only a handful of players such as Bigorf and Big India Farms competing with Hosachiguru. But humanity’s growing affinity for green things and its propensity for wealth creation is likely to propel the industry.
Sriram took Hosachiguru’s view, saying, “We are giving people hassle-free farm management, creating rural employment, and offering win-win to the country. We are moving forward with Make in India, Harvest in India, Sell in India. “