top of page
Search

Case Study 07: Agritech Startup Valuation in Kolkata, India

agritech startup valuation in kolkata

Background

Startup Venture G is a Kolkata-based agritech company operating a B2B digital marketplace focused on optimising the global trade of tea and coffee. Founded in July 2022, the company leverages AI, IoT, and data analytics to enhance price discovery, improve market access, and bring transparency across the agricultural supply chain.

The platform offers an integrated suite of services including an e-marketplace for tea and coffee trading, laboratory testing of produce samples, sustainability and climate-focused solutions for plantations, and access to farm inputs. At the time of engagement, Startup Venture G was in seed stage (early stage), with growing transaction volumes and a clearly defined roadmap for scale.


Engagement Objective

A renowned investor engaged Chunder Khator & Associates to carry out an independent valuation discovery exercise in connection with their second tranche of investment into the startup. The objective was to arrive at a fair and defensible valuation range that could act as a reference during investor discussions, while capturing the company’s business model, market opportunity, and agritech-specific risks.

The valuation was undertaken solely for investment purposes, and not for compliance with any statutory or regulatory requirement.


Valuation Challenges

Valuing Startup Venture G involved addressing complexities typical of early-stage agritech marketplaces:

  • Dependence on adoption by both producers and buyers within fragmented supply chains

  • High working capital intensity driven by inventory and receivables cycles

  • Sensitivity to commodity pricing and agricultural seasonality

  • Limited operating history combined with aggressive forward-looking projections

These factors necessitated a multi-method valuation approach.


Our Approach

To derive a credible valuation range, we adopted a multi-method valuation framework, triangulating value using:

  • Discounted Cash Flow (DCF) Valuation Method

  • Comparable Transaction Multiple (CTM) Valuation Method

  • Venture Capital (VC) Valuation Method

Given that the DCF method captured company-specific projections and long-term cash flow potential in greater detail, a higher weightage was assigned to the DCF outcome, with CTM and VCM methods providing market and investor-return benchmarks respectively.


Key Valuation Considerations

  1. Investor Return Expectations and Risk Profile - For VCM valuation, investor return expectations were aligned with benchmarks applicable to early-stage agritech and marketplace investments. A higher expected IRR was assumed to reflect execution risk, capital intensity, and the time required to achieve scale and liquidity. Dilution in investor's stakes over the next 5 years was derived from our proprietary research on India's startup ecosystem.

  2. Entity-Specific and Liquidity Risk Adjustments - For discount rate used in DCF valuation, additional risk premiums were incorporated to account for the non-marketable nature of the equity interest, expected dilution through future funding rounds, and limited exit visibility at the early stage. These factors were explicitly reflected in the discount rate applied under the DCF method.

  3. Comparable Transactions and Market Benchmarking - Comparable fundraising transactions involving B2B agritech and agricultural marketplace platforms in India were analysed to anchor valuation assumptions in market reality under the CTM valuation method. Here's what the comps table looked like:

Company Name

Sector

Funding Round

Pre-Money Valuation (₹ Cr.)

Forward Revenue Multiple

Arya

Agritech Marketplace

Series A

~109

~1.8x

BigHaat

Agritech Marketplace

Seed

~49

~2.9x

DeHaat

Agritech Marketplace

Seed

~7

~1.1x

Jumbotail

B2B Food & Agri Marketplace

Series A

~329

~2.9x

Ninjacart

Agritech Marketplace

Series A

~95

~1.8x

Vegrow

Agritech Marketplace

Seed

~40

~0.4x

  1. Sensitivity Analysis and Assumption Testing - Key assumptions, including discount rates, terminal growth, and investor return expectations, were stress-tested to assess their impact on valuation outcomes. This ensured robustness of the valuation range and transparency around key value drivers.


Outcome

The valuation exercise resulted in a defensible valuation range referred to by the investor for negotiating with Startup Venture G’s founders for a higher stake in their venture.


Conclusion

This case study demonstrates how a structured, multi-method approach to agritech startup valuation in Kolkata can support informed investment decisions in complex, supply-chain-driven sectors. At Chunder Khator & Associates, our valuation discovery engagements are designed to deliver clarity, credibility, and confidence, enabling founders, investors and incubators to navigate valuation discussions with a shared understanding of risk and opportunity. Our valuation services includes:

  • Valuation Discovery for Fundraise

  • Valuation Certificates for Compliance

  • ESOP Valuation

  • Valuation for Mergers & Acquisitions

  • Valuation for Financial Reporting

  • Valuation Review & Second Opinions

Read more about our valuation services here.

You can direct your queries or comments to the authors here.


Disclaimer: The material herein is provided for informational purposes only. The information should not be viewed as professional, legal or other advice. Professional advice should be sought prior to actions on any of the information contained herein. CKA is not responsible for any matter concluded by any person based on the contents of this article.

Comments

bottom of page