Friends Called Him Crazy for Quitting Merchant Navy Job to Start Mushroom Farming; Today This Kerala Man Has Built ₹2 Crore Turnover Biz

Mushroom farming is not a new practice for Kerala’s farmers.

For decades, the state has recognized the growing importance of mushrooms, not in terms of their economic potential but also for their nutritional and health benefits.

Yet, for a long time, cultivation remained small-scale, scattered, and largely disconnected from structured markets.

This potential caught the attention of Rahul Govind, the founder and CEO of Monsoon Mushrooms, in early 2016. 

At the time, Rahul had returned home to Kannur during a leave period from his Merchant Navy job, where he had worked as a junior officer between 2011-16. 

Founded in 2018 in the Kannur district of Kerala, Monsoon Mushrooms gradually evolved from a small cultivation unit into a farmer-centric ecosystem. 

Today, the venture operates 7 farms with a total capacity of 2,500 beds each, serves over 12,000 farmers across the state, and has helped establish nearly 50 independent high-tech mushroom farms. 

About Rahul’s Background

Rahul Govind hails from Iritty, a town in the Kannur district of Kerala. He was raised in a traditional farming family that owned eight acres of land, where they cultivated coconut, paddy, pepper, and banana. This background provided him with a fundamental understanding of agriculture. 

In 2010, Rahul earned his undergraduate degree in English Literature, followed by a one-year diploma in Nautical Science in 2011.

Shortly after, he began his professional career as a Junior Officer in the Merchant Navy, a role he held from 2011 to 2016. 

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What It Really Took to Build Monsoon Mushrooms?

In 2016, Rahul returned home due to pressing family responsibilities and spent nearly a year managing personal matters. During this period, a long-standing idea began taking shape. 

Seeing potential in a mushroom farm as a sustainable food farm model, he shared the idea with his mother.

Initially, his mother was hesitant, but seeing the determination in his son’s eyes, they both got enrolled in a training program at Krishi Vigyan Kendra (KVK), Kannur, where they learned structured mushroom cultivation techniques suited for small and scalable organic farm setups.

Applying this learning, Rahul started cultivation in a modest 50 sq. ft. storeroom located on his traditional land and cultivated mushrooms around 100 beds, with the first harvest ready in 21 days. He invested around Rs. 2,000 in it.

Encouraged by the quick turnaround of mushroom farming, he took a decisive step by the end of 2016, leaving his Merchant Navy career to focus on building Monsoon Mushrooms as a commercially viable mushroom farming venture.

However, his decision was not fully understood and accepted by some of his friends, and they called him crazy. He had, instead, the support of his family, which enabled him to move forward in mushroom farming. 

Also Read: Jaipur Woman Once Invested Rs 5,000 To Grow Mushrooms In A Small Room With No AC; Now Her Ayurvedic Mushroom Biz Is Eyeing Rs 1 Cr Revenue

Partnership with ARYA

During his training tenure at Krishi Vigyan Kendra (KVK), Rahul came across the ARYA (Attracting and Retaining Youth in Agriculture) project.

It was initiated by KVK to help youth below the age of 35 years join agriculture. He joined this project and benefited from it, gaining exposure and networking opportunities that ultimately helped increase his understanding of mushroom farming.

"We are actively working through the ARYA project to attract and retain youth in agriculture by equipping them with skills for various farm-linked enterprises. This is crucial for development; without it, the old system of small-scale, traditional farming methods will persist,” Rahul shared this in an exclusive interview with Startup Pedia.

Identifying the Market Gap

After completing his training and successfully growing 100 mushroom beds, Rahul made a critical observation. He noted that in Kannur, only two farmers were cultivating mushrooms on a large scale, and they were producing just 10 kg of mushrooms per day. 

Realising that the market was largely untapped and had massive potential, and with the support of his family, he ultimately decided to learn more about mushrooms and build this into a real business.

"The depth of the market is very big, but nobody has touched that area. So I thought I could do better because of my age and no limitations. All the things that are necessary to grow mushrooms were already available,"Rahul shared this in an exclusive interview with Startup Pedia.

Beginning of Monsoon Mushrooms and Initial Investments

The brand’s name reflects the climate of Kerala and Rahul’s belief in growing with nature. 

Rahul began his agroventure journey in 2017 with a modest experiment rather than a formal business plan. 

With an initial investment of Rs. 2,500, he purchased mushroom spawn and set up 80 to 100 beds in a small room created specifically for his mother. The space was not a farm, but a simple, functional setup meant to explore cultivation at a basic level.

The results were encouraging. From this small setup, Rahul was able to generate returns of Rs. 7,000-10,000 per cycle, provided all activities were handled independently. This early success gave him the confidence to continue learning and experimenting.

In 2018, Monsoon Mushrooms formally took shape. By 2019, Rahul expanded into a larger setup using garden nets and green nets, though it was still not a high-tech farm. 

This phase focused heavily on learning, manual operations, and understanding cultivation challenges. 

During this period, water spraying, temperature control, and hygiene were managed manually, making the process labour-intensive.

The first high-tech mushroom farm was established in 2022, marking a major operational shift. 

Automated temperature and humidity control enabled year-round production, eliminating dependence on seasons. 

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Productivity, Production Cycle, and Returns

Today, mushroom cultivation at Monsoon Mushrooms runs as a continuous process, with beds producing mushrooms daily.

Each mushroom bed has a productive life of around 100 to 120 days. The first harvest begins within 21 days, followed by multiple harvest cycles. 

Once a bed completes its life cycle, it is converted into organic manure, and a new bed replaces it. 

Production is maintained through a rotational batch system across multiple farms, ensuring consistent daily output.

Currently, Monsoon Mushrooms produces around 40 to 60 kg of mushrooms per day. 

A structured and planned production system includes the following:

• Each farm completes three production cycles per year

• For one production cycle in a single farm:

• Investment: Approximately Rs. 1.5 lakh (bed filling, materials, and operations)

• Returns: Around Rs. 3–4 lakh

• Labour and regular maintenance costs are included within operational expenses

6 farms are located across various districts in Kerala, and 2 more in Aralam, run in collaboration with the state government, and mainly grow oyster, milky, and rare varieties like turkey tail and lion’s mane. 

In a question about his source of investment, Rahul said that they are not only earning an amount but are also reinvesting all the money back into the industry.

"We are not only earning an amount, but we are also reinvesting all the money within this industry," Rahul said.

Business Model and Revenue System

Over the last 3 years, Rahul has invested close to Rs. 1 crore in building the infrastructure, including farms, laboratories, machinery, vehicles, offices, and staffing. 

This investment was funded almost entirely through earnings from mushroom-related products and services. 

The only external funding involved was a Rs. 15 lakh agricultural loan, taken from a bank, used specifically to expand the spawn production unit.

Today, Monsoon Mushrooms functions as a multi-department organisation with accountants, office staff, production teams, and sales personnel. 

Financially, the business records daily sales of Rs. 40,000 to Rs. 60,000, depending on operations. This generates an annual turnover of approximately Rs. 1.85 to Rs. 2 crore.

Monsoon Mushrooms operates on a hybrid business model. The firm is not limited to mushroom cultivation alone, and its revenue is driven by multiple verticals, which include:

• Large-scale production and supply of mushroom spawn across India

• Introduction and sale of Mush Pellet, a first-of-its-kind cultivation medium in India

• Supply of essential mushroom farming materials

• Conducting 100+ training programs annually

• Designing and constructing mushroom farms for improved yield

• Production of value-added mushroom food products

• YouTube and digital education outreach

“In about 21 days, we are harvesting mushrooms for sale. We have several varieties ready for market in three weeks and expect to receive payment within that timeframe,” Rahul said, highlighting the production cycle of mushrooms.

Desire to Expand Digitally During the COVID-19 Times

In 2020, when COVID-19 was at its peak, Rahul started a YouTube channel to share mushroom farming knowledge with others. At that time, he realised that there were no Malayalam channels creating content on this topic. 

He began uploading step-by-step videos on mushroom cultivation for Malayali farmers, and as a result, these videos gained significant reach, and he started receiving many enquiries related to mushroom farming. Today, the channel has around 22,000 subscribers.

Also Read: MBA Grad From Delhi Grows Button Mushrooms In Three Rooms; Clocks Rs 60 Lakh Revenue Annually

Role of Mush Pellet in Mushroom Cultivation

Monsoon Mushrooms launched the mush pellet in July 2023. It is an alternative medium that allows mushroom growth in a contamination-free environment. 

The innovative substrate was introduced by Rahul’s business advisor, Adam Shamsudeen. Traditional mushroom cultivation methods have the potential to cause disinfection and often require high labour demands. 

The mush pellet is a sterile, nutrient-balanced medium, made primarily from disinfected rubber sawdust.

"Because of the mush pellet, we can grow mushrooms only in a neat and clean place. We can't use any pesticides or anything else. We just make the temperature and humidity accurate for the specific type of mushrooms we need to grow,” Rahul Said.

While product innovation has been central to Monsoon Mushrooms’ journey, strong financial stewardship has played an equally important role behind the scenes.

As a partner at Monsoon Mushrooms, Sreekanth, who joined the business in 2023, now oversees all financial operations, including budgeting, cost management, and long-term planning.

Working quietly in the background, he ensures financial discipline and stability, allowing the team to focus on innovation and scaling the business. His steady involvement has been instrumental in supporting the company’s sustainable growth.

Introduction of Mushrooms into Everyday Food to Add Value

After achieving massive success in mushroom farming and consultancy services, Rahul soon realised that there was a growing demand for ready-to-cook and healthy food products, especially in the aftermath of COVID-19. 

He decided to venture into processing mushrooms into tasty, shelf-stable products, and his first value-added product, mushroom soup, was launched in 2020 at the Viaga Agricultural Expo. 

Due to its affordable price and exceptional taste, the product quickly gained popularity, pushing Rahul to launch retort-packed mushroom biryani and masala, which can be stored for up to 8 months without preservatives. 

In a collaboration with Eatery Malabaricus, Monsoon Mushrooms sells its value-added products, and it now reaches government ministries and consumer markets across the state.

Also Read: Shocked by Adulteration in Indian Spices, Kerala Man Builds a 100% Farm-Fresh, Traceable, Premium Spice Brand - Eyes Rs 2 Cr In Revenue

Looking Forward

With a total of around 12,000 customers in their base, Rahul's emphasis is to educate and train a larger number of people to help them overcome their misconceptions related to mushrooms. 

He also said that he is willing to take more training classes in a year and increase his reach beyond the state of Kerala. 

Concluding the talk, Rahul discussed the health benefits of mushrooms and the need to raise awareness around them.