"Every bank I approached refused me," says Rajasthan farmer who has now built a 90 lakh turnover mushroom spawn business

Agriculture in Rajasthan mainly revolves around traditional crops such as millet, maize, groundnut, and pulses, as well as livestock-based livelihoods. 

Only a few entrepreneurs have ventured into the highly specialised, science-driven domain of mushroom spawn production. 

One such example is Shankar Meena, the founder and CEO of Jeevan Mushrooms. He spent his childhood playing in the maize fields cultivated by his father, but over time, he began to notice his father’s struggles and the low income they generated. 

He realised that conventional crops were no longer able to provide a sustainable income, and rather than following the usual path, he began exploring alternatives. 

His research led him to mushroom farming. Instead of entering cultivation like most farmers, he identified a deeper gap in the ecosystem: the lack of locally produced, high-quality mushroom spawn. 

Farmers across India were dependent on distant states for this critical input.

“Without a strong foundation, no structure can stand. Spawn is the backbone of mushroom farming, so I decided to work on it,” Shankar tells Startup Pedia in an exclusive interview. 

Acting on this insight, he laid the foundation for a dedicated spawn production venture that today supplies farmers across India, supports thousands of growers, and demonstrates how rural innovation can be both scientific and scalable.

The Background of the Owner of Jeevan Mushrooms

Born and raised in the small village of Dantli near Jaipur, Rajasthan, Shankar Meena comes from a traditional farming family that witnessed the limitations of conventional farming, which, despite constant effort, failed to provide a sustainable income. 

He completed his schooling in the village and later pursued his undergraduate studies, earning a bachelor’s degree in commerce. 

In 2012, he enrolled in a full-time MBA program at the University of Rajasthan designed for working professionals. However, he soon discovered that the curriculum did not align with his entrepreneurial objectives, and, as a result, he dropped out in the second semester in 2013.

Instead of searching for employment opportunities, he intended to build a business that could create long-term livelihood opportunities and be carried forward by future generations.

“I wanted to build something in agriculture that could provide sustainable career opportunities for future generations, not just for myself,” Shankar tells Startup Pedia.

To translate this intent into action, Shankar began formal training under Dr Pradeep Singh Shekawat at the Agriculture Research Centre in Jaipur. 

This phase provided him with the technical grounding and business clarity necessary to understand how an agricultural venture could be launched and sustained at scale.

“I didn't have much interest in corporate jobs. The nine-to-five kind of work was not for me. My entire upbringing in a village with strong agricultural roots made me think differently about my career,” the Rajasthan-based farmer says.

Building further on his training, in 2015, he travelled to the ICAR–Directorate of Mushroom Research in Solan, Himachal Pradesh, to attend a workshop and understand the finer aspects of mushroom cultivation. 

The Problem Shankar Meena Identified

Shankar observed a major structural gap in Rajasthan’s agriculture value chain. The state did not have a single dedicated unit for mushroom spawn production, which led to farmers becoming highly dependent on other states such as Himachal Pradesh, Haryana, and Delhi. After identifying this problem, he began working on it.

"Land is decreasing, water levels are dropping significantly, and seasonal diseases are wreaking havoc on crops. When these diseases strike, farmers resort to excessive fertiliser use. Mushroom farming solves all of these problems at once," he tells.

To validate the idea, he sourced mother culture from the ICAR–Directorate of Mushroom Research, Solan, and set up a temporary laboratory in his house’s garage, using capital from his family’s electrical business.

This trial phase focused on understanding spawn behaviour, quality control, and feasibility at a small scale. Subsequently, Shankar established a full-scale laboratory spread across 9,000 square feet. 

The facility was equipped with advanced machinery, including seed germination chambers, vertical autoclaves, and laminar airflow cabinets, to ensure sterile working conditions and consistent productivity.

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First Setup and Challenges 

Since Shankar comes from a commerce background and had no prior knowledge of laboratory work or microbiology, he faced several challenges. 

However, after completing his initial training in both Jaipur and Himachal Pradesh, he gained an understanding of key production processes such as sterilisation, incubation, and inoculation, which allow the fungi to grow and develop colonies. 

"Dr Sekhawat at the Agriculture Research Centre, Jaipur was exceptionally humble and generous. He told me, ‘I won't give you the kind of generic training available elsewhere. I will teach you everything practically. Whatever I do, I will show you.' That kind of support was invaluable," Shankar tells Startup Pedia.

Despite this, he often struggled with contamination, temperature imbalances, and improper handling, but he treated each failure as a stepping stone toward success by gradually refining the process.

Access to funds was another major challenge, as banks were hesitant to finance a science-based agriculture venture that was still new to the region. 

"Every bank I approached refused me. There's a huge gap in the system. Young people in India are talented and eager to work, but banks focus on meeting their loan targets rather than genuinely evaluating the viability of a business. That was my biggest hurdle," the farmer says.

First Investment and Growth Observed

To establish his mushroom spawn cultivation venture, Shankar invested around Rs. 16 lakh, a part of which (around Rs. 9 lakh) he arranged through a loan under the Pradhan Mantri Mudra Yojana.

The rest of the investment came from personal savings and his family’s electrical business.

In January 2017, he set up a single unit with an initial production capacity of 5 tonnes of mushroom spawn per year. 

In that year, he earned around Rs. 5 lakh by selling mushroom spawn at Rs. 100 per kg.

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About Jeevan Mushrooms

In 2023, Jeevan Mushrooms expanded its farm facility from 3000 sq. ft. to 12,000 sq. ft. The farm facility is now equipped with specialised infrastructure, including large autoclaves used for sterilisation. These autoclaves sterilise grain at 122°C under pressure.

Post-sterilisation, the material is transferred to cooling chambers, where it is gradually brought down to room temperature. 

It is then moved to incubation chambers maintained at the same temperature.

The facility also houses a laboratory section for inoculation, where fungal culture is introduced into sterilised grain. 

For storage, finished spawn that is not immediately dispatched is kept in cold storage units maintained at 4°C, ensuring quality preservation until distribution.

Jeevan Mushrooms operates from the Durgapura area of Jaipur, close to the Agriculture Research Centre. 

This location provides access to rail, air, and road logistics, enabling pan-India distribution.

Wheat is used as the primary grain substrate, as it provides lignin and cellulose, which serve as nutrition for fungal growth until the spawn reaches the farmer’s compost.

The venture provides a wide range of mushroom varieties, including button, oyster, lion’s mane, paddy straw, shiitake, ganoderma, and portobello.

Business Model, Production & Distribution Channel

The current output has recently reached 15–18 tonnes per month, after successive expansion rounds, with mushroom spawn selling at around Rs. 100 per kg across states.

"We sell mushroom spawn at one hundred rupees, which gives us a decent profit margin. Our customers get a fair deal, and we still make our profit. That's how we build long-term relationships," Shankar tells Startup Pedia.

Jeevan Mushrooms operates on a B2C model, supplying mushroom spawn directly to mushroom farmers. This approach is critical due to the short shelf life of spawn, making faster delivery and controlled handling essential. 

For bulk and repeat customers, pricing is negotiated depending on volume, delivery timelines, and logistics requirements.

Distribution is managed directly by the company. Local orders are fulfilled through direct delivery, while out-of-state supplies are shipped via rail or air, depending on urgency and distance. 

For long-distance and bulk consignments, the company uses specialised refrigerated containers and cooled packaging with ice gel to maintain optimal temperature conditions and preserve quality in transit.

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Annual Revenue

In FY21, Jeevan Mushrooms generated a revenue of approximately Rs. 15 lakh, primarily from mushroom spawn sales (priced at around Rs. 100 per kg) along with its emerging training vertical, developed in 2019 to provide affordable and practical mushroom cultivation training.

As the entrepreneur expanded both infrastructure and outreach, the business began building the training vertical as a strong second line of income, which also helped strengthen farmer trust, improve cultivation outcomes, and drive repeat demand for spawn. 

As a result, revenue rose to nearly Rs. 35 lakh in FY22 and further to around Rs. 52 lakh in FY23.

With continued scaling, distribution, and growing traction in training programs for farmers and youth, the venture recorded a revenue of approximately Rs. 75 lakh in FY24. 

In FY25, Jeevan Mushrooms generated a revenue of around 90 lakh.

In FY26, the venture projects a revenue of around Rs. 2.5 crore, driven by growth across both spawn sales and the training-led ecosystem it has built over the years.

Looking Forward

The company plans to further increase spawn production capacity beyond current levels by investing in more advanced technology and continuing to expand its distribution network across India. 

Alongside this, the venture aims to make its training vertical a key focus, offering internship and training opportunities to students in mushroom cultivation. 

Over the next five years, the focus will be on doubling production, setting industry benchmarks for quality, and expanding training to support more than 1,000 individuals each year.

"Young people with energy and ideas should see agriculture as their opportunity. There are problems to solve, farmers to help, and businesses to build. This is where I'm focusing my efforts, and this is where the true future of Indian entrepreneurship lies, in creating sustainable, science-based agricultural solutions,” Shankar concluded.

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