ReshaMandi, a B2B marketplace for silk products, has secured Rs 50 crore or $6.2 million in a debt round from Stride Ventures. This is the first round of debt investment for the Bengaluru-based company this year (2022).
The board at Resha mandi has passed a special resolution to issue 5001 NCD (Non-convertible-Debentures) at an issue price of Rs 1,00,000 each to raise Rs 50 crore or $6.2 million, a regulatory filing with the Registrar of Companies (Roc) shows.
Founded by Mayank Tiwari and Saurabh Kumar Agarwal, Reshamandi offers crop advisory (along with hardware IoT devices) to silk farmers, raw materials along with design inputs to weavers and connects them to mills and retailers.
ReshaMandi said it now plans to expand its agricultural business in all major silk-producing states across India while also establishing itself as a leader in weaving clusters like Banaras, Salem, Kanchipuram, Maheshwar, and Dharmavaram.
It also aims to extend its retail footprint further into Agra, Kota, Gorakhpur, Dhanbad, Ranchi, Bhopal, Indore, Jabalpur, Rajkot, Vadodara, Surat, Pune, Nagpur, Satara, Visakhapatnam, Vijayawada, Madurai, Coimbatore, Kochi, and Kannur, over the next three to six months, the company added.
The company claims that it works with 60,000 farmers, more than 10,000 weavers, over 7,500 yarn manufacturers, and 3,500 retailers. As per the company, more than 20,000 tonnes of a cocoon, 1,500 tonnes of raw cotton, and 6,000 tonnes of cotton bales have been sold and transacted via its app.
The Creation Investment-backed firm has raised $53 million so far including $30 million Series A round in October last year. In June 2022, it also initiated a new funding round. The debt could be a part of the ongoing financing round.
The company’s operating revenue stood at Rs 20.5 crore, according to the financial statements filed with RoC for the year ending March 2021. Meanwhile, its losses stood at Rs 2.14 crore during the same period. In FY22, ReshaMandi claims that it recorded revenue of nearly Rs 450 crore. The company is yet to file its audited financial statements for FY22.