Greenikk, an agritech startup founded in 2020 by Farooq Naushad and Praveen Jacob, aimed to revolutionize banana cultivation through a digital ecosystem. Despite providing farmers with financing, seeds, advisory, and market connectivity, Greenikk failed to achieve Product Market Fit. The company faced significant financial losses, primarily due to loan defaults, and has decided to shut down operations. Investors, including 100Unicorns, IIM A Ventures, and others, will receive partial returns on their investments following the business closure.
Another startup shuts shop, 100Unicorns had also invested money, founders revealed why their business lost steam
Agritech startup Greenikk, focused on banana cultivation, shuts down due to financial losses and failure to achieve Product Market Fit, with investors like 100Unicorns and IIM A Ventures impacted.
ZeeBiz WebTeam | Oct 01, 2024, 02:02 PM IST
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Agritech Startup Greenikk Shuts Down
Greenikk Focused on Banana Cultivation
Greenikk, an agritech startup specializing in banana cultivation, has officially shut down due to continuous losses and inability to find Product Market Fit (PMF).
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Unsuccessful Efforts Despite Market Growth
Despite significant efforts, Greenikk couldn’t overcome the challenges of defaulting loan borrowers, contributing to its losses.
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Insights from Greenikk's Founder
CEO's Perspective on Limited Scalability
Farooq Naushad, the co-founder and CEO of Greenikk, acknowledged that while the business grew, its scalability was too limited to meet the founders' vision.
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Loan Defaults Increased Losses
Naushad reported securing loans up to Rs 6 crore, but repeated borrower defaults worsened the company's financial standing, making it unprofitable.
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Investor Impact and Fund Return
100Unicorns Among Investors
Greenikk raised approximately $1 million, attracting investors like 100Unicorns, IIM A Ventures, Mastermind Capital, Smart Sparks, and Reshamandi's Mayank Tiwari.
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Partial Return to Investors
Following the business closure, the startup plans to partially return the remaining funds to its investors.
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Greenikk's Journey and Vision
Launched in 2020 by Naushad and Jacob
Co-founders Farooq Naushad and Praveen Jacob launched Greenikk in 2020, aiming to build a digital ecosystem around banana cultivation by addressing issues across the banana value chain.
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Comprehensive Farmer Support
Greenikk provided services like financing, seed supply, crop advisory, insurance, weather forecasts, and market connectivity to help banana farmers manage their operations efficiently.
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Challenges Identified in LinkedIn Post
Failure to Achieve Product Market Fit
In a LinkedIn post, Praveen Jacob admitted that Greenikk failed to establish PMF, despite offering a wide range of services and creating an app. Customers mainly viewed Greenikk as a vendor for working capital rather than a comprehensive ecosystem facilitator.
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Initial Demand Faded
Initially, Greenikk received strong inquiries, but after a few deals, demand dwindled. Jacob attributed this to customers already having access to working capital through other sources, making Greenikk's business unsustainable.