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In India, agri-asset management is still a fledgling business, with just a few competitors competing with Hosachiguru, such as Beforest and Big India Farms. However, humanity's rising affection for all things green, as well as its desire to create riches, are expected to drive the business ahead.
Masterminds Behind Hosachiguru
Engineers Ashok Jayanthi, Sriram Chitlur, and Srinath Setty abandoned their employees to engage in agriculture. They have joined forces to establish Hosachiguru, a Bengaluru-based agricultural asset management firm. Farmland has been passed down through the generations to all three of them. Even though they couldn't devote much time to farming as working professionals, they managed to do it on weekends.
Hosachiguru was created in 2015 by three engineers who left high-paying IT careers to pursue their passion for farming. It sounds romantic, and the founders knew exactly what they were selling to their customers: the romance of owning a farm. Through its farm-as-a-service approach, a Bengaluru-based agritech business assists consumers in owning agricultural assets and managing them on their behalf.
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People began approaching them for assistance and recommendations on how to manage their agricultural property after seeing how effectively they balanced farming and their professional life. This is how they came to the decision to launch a business to assist others in investing in agriculture. Hemanth P., who has experience in financial and asset management, joined them. Hosachiguru, which means delicate sprouts in Kannada, now oversees agricultural assets in horticulture, forestry, protected cultivation, and nursery valued over USD 7 million.
Hosachiguru: This agritech startup helps people own and manage farms for long-term wealth benefits
The Kannada words hosa (meaning "new") and chiguru (meaning "shoot") are combined to form Hosachiguru. They signify sensitive cultivation when used together. People who desire to invest in agriculture for long-term wealth benefits can use the Agri asset management company's farm-as-a-service. The Bengaluru-based business assists individuals in purchasing, growing, cultivating, and managing farmland, as well as earning an income from their harvest. In exchange, Hosachiguru charges a land fee (Rs 60 per square foot) and a yearly farm maintenance fee to its consumers. Hosachiguru also assists landowners in earning 20-30% more for their fruit, which the firm sorts, grades, packs, and distributes.
Drone monitoring and security, remote IoT sensors, high-speed irrigation units, power supply, rainwater harvesting systems, hammocks, cycling tracks, work-from-farm amenities, in-campus farming apartments for contractual labour, and more are all available on Hosachiguru's farms.
How Hosachiguru Farms works
Hosachiguru begins by hand-picking farms for its purchasers based on essential criteria such as property titles, soil type, water availability, irrigation infrastructure, and connection. Land plots ranging in size from 0.25 acre to 1 acre are available, with prices ranging from Rs 10 lakh to Rs 32 lakh. They can choose crops (seasonal fruits and vegetables) and timber (teak, sandalwood, mahogany, Melia Dubia) to cultivate on the plot after they become landowners.
Cultivation, soil management, drip irrigation systems, fertiliser-free crop upkeep, agroforestry, the building of weekend cottages and gated farm communities, and harvesting and distribution of the product are just some of the high-tech farming services offered by Hosachiguru.
In its agri-investment concept, Hosachiguru uses a straightforward three-step procedure.
• It begins by acquiring land for its investors. The property is chosen based on the availability of water, soil qualities, and the investor's budget. If a client already owns the land, Hosachiguru assumes responsibility for its management.
• It then plans and develops the land based on the crops that will be grown there. It prepares the land for farming, instals a drip irrigation system or a borewell, engages farm labourers, secures a farm electrical line, and so on.
• Hosachiguru oversees the operations for three months once the land is bought and prepped.
Creating an Impact in the Society
Hosachiguru now maintains approximately 1,000 acres of land over 20 farms in Karnataka, with a revenue target of Rs 50 crore for the year. It also claims to have employed over 500 local farmers and over 100 contract labourers, as well as reducing rural migration. The firm promises to be able to reduce the cost of starting a farm by 70% compared to what an individual farmer would normally pay.
Another reason clients like the firm are because it provides them with real-time data on their farm. Clients may obtain reports online to keep track of their investments and agricultural success, including facts such as how much fertiliser has been used, crop growth, and so on. Customers can watch their farms from a single dashboard and remain on top of critical agro data like soil moisture, wind velocity, rainfall, harvest cycles, estimated production, and areas that need care.
Growth and the business model
It gets paid a fee for selling land and for delivering annual agricultural management services. It also takes a 30% cut of the money that farmers make from selling their crops. Sales of seedlings cultivated at Hosachiguru's nurseries also bring in money. It handles $7 million in agricultural assets and promises to be expanding at 30-40 per cent each year. Prestige Group CEO Venkat Narayan has invested unknown amounts in the firm. To expand operations, it is currently searching for "serious investment partners."
Nature and society are becoming empowered.
Hosachiguru efficiently contributes to the removal of atmospheric carbon through their numerous efforts. Organic activities, as well as flora and fauna, contributing to increasing soil health. The firm also contributes to groundwater recharge, using over ten distinct activities to do so. In addition, Hosachiguru has employed over 100 local farmers. Family members of these farmers have also been accommodated by the firm.
Plans for the future
As the demand for sustainable practices and weekend getaways grows, Hosachiguru aims to develop hospitality and ecotourism on its farms. Hosachiguru hopes to manage 5,000 acres of property in the next three years, as well as grow into coffee and tea plantations. Hosachiguru is looking to buy fresh acreage in the neighbouring states of Telangana, Andhra Pradesh, and Tamil Nadu, where farm ownership regulations are less stringent and enable people with no agricultural history to purchase the property.