FarMart, a business to businessfood supply platform, raised $32 million in its latest funding round led by US venture fund, General Catalyst, with participation from existing backers Matrix Partners India and Omidyar Network India.

The funds will help the company grow its digital distribution network across India and to export markets. It also plans to make investments into R&D, automation and technology.

The financing round for the software-as-a-service or SaaS platform which helps food businesses source produce from them comes six months after it raised $10 million as part of its first institutional raise. The previous fundraise was led by Matrix Partners India, with participation from Innoven Capital, existing investors Omidyar Network India, Avaana Capital, and 500 Startups.

With the new round, the total capital raised by the company so far is $ 48 million (Rs.366 crore).

Deep Nishar, MD, General Catalyst says, “the fast-growing B2B platform activates critical connections between farmers and agri-retailers, enabling millions of farmers to supply fresh produce to consumers all over India, creating powerful, positive change for these stakeholders.”

Founded in 2015 by Sanghera and Mehtab Singh Hans, FarMart’s model is centred on agri-input retailers and solves some of the challenges faced by the retailer community. It provides a micro-SaaS platform that enables retailers to digitize their workflows, increase sales to farmers and conduct their existing business in a more efficient manner. The startupt also helps retailers procure commodities from farmers and sell directly to large enterprises through the FarMart platform, opening up a completely ompletely new source of revenue for them.

Alekh Sanghera, cofounder and CEO, FarMart says, “our current annualized revenue run rate stands at $70 million with a 25-30 percent month on month growth. We will also look at inorganic growth opportunities to help us widen our product portfolio, enhance our tech abilities or to scale non-linearly by acquiring companies.”