Kerala Couple Helps Farmers Earn Rs 6 Cr With Their Mushpellets

Adam Shamsudeen was living a comfortable life in Saudi Arabia with his parents until his father, an engineer, had a major heart attack when Adam was in 11th grade. The entire family returned to Kerala, India, for his treatment.

"My father could not work post-heart attack, so we had to take loans to survive," said Adam during an exclusive conversation with Startup Pedia.

He graduated with a BTech in computer science and secured a job at TCS. He then joined Saama Technologies, where he worked in the pharma domain for four years. During this time, he learned about the process of making medicine, leading him to realize that "it's better to work on prevention than curing people with a healthy lifestyle," Adam told Startup Pedia.

While researching how to live a healthy life, Adam discovered the benefits of adding mushrooms to one's diet. Hence, Adam, along with his engineering-turned-entrepreneur wife- Raeesa Manaal, embarked on a mission to improve people's health with mushrooms under their brand 'Grow The Funguy.'

The Journey of Grow The Funguy

Armed with ambition and resourcefulness, Raeesa and Adam launched their business, Grow The Funguy, from the comfort of their home. They took on multiple roles: product creators, packagers, customer service representatives, and shippers.

"The office was our room," Raeesa said during a conversation with Startup Pedia. "All the ideas were in our minds."

Their initial investment of around Rs. 10 lakh came entirely from their savings. They used the money to set up a mushroom lab in their room and for marketing their products.

The agri-tech startup's first product, a user-friendly mushroom grow kit priced at Rs. 699, was a game-changer. This innovative kit allowed anyone to cultivate fresh and organic mushrooms at home with minimal effort. The concept resonated with customers, and soon, the company was expanding its offerings.

Then came the invention of "Mushpellets"—Adam's brainchild. These pelletized mediums, entirely organic, drastically simplified the mushroom-growing process for farmers.

"Farmers can just pour hot water and put the seed. The mushroom grows without any further effort," co-founder Raeesa explained to Startup Pedia.

Mushpellets became a runaway success, not only propelling the startup's revenue but also earning the co-founders a trademark and establishing them as pioneers in the Indian market.

Grow The Funguy co-founders' ambition doesn't stop at a few products. They are currently pioneering a revolutionary concept called Grow Room, a method of growing mushrooms in containers controlled by smartphones with the help of AI. The Kerala-based mushroom brand is almost ready with its first Grow Room order from Kochi, which is soon to be delivered.

Adam, the co-founder of Grow The Funguy, said, "One Grow Room or mushroom container costs around Rs. 10-15 lakh, which can be recovered within a year. This is the best way of growing any kind of mushroom anywhere in the world."

The product line of Grow The Funguy has since diversified to include a range of mushroom-based supplements, DIY kits for aspiring mushroom farmers, and exotic mushroom varieties like Lion's Mane and Reishi.

Raeesa emphasizes the focus on organic practices, stating, "Our mushrooms are not like a seed product which is made inorganically. They are organically made."

The most popular product, Mushpellets, has sold around 20 tonnes in the last month alone. "Over 500 farmers now consistently purchase our Mushpellets, enabling them to cultivate mushrooms worth a staggering five crores (approximately USD 6.2 million) in just one year," claimed the co-founders.

Today, they have a dedicated lab for mushroom spawn production and a manufacturing partnership for their signature Mushpellets. They employ a team of seven to eight full-time staff and fulfill orders across India. The rainy season, prime time for mushroom cultivation, sees a surge in demand, with daily shipments exceeding 1,000 kg of mushrooms.

While Kerala remains a strong market for their hero product, Mushpellets, metro cities like Bangalore, Delhi, and Hyderabad are driving sales for their premium offerings like exotic mushroom supplements and mushroom grow kits.

Financial journey of the brand

The first year of Grow The Funguy was challenging, making Rs. 2-3 lakh annually. In FY24, the mushroom brand crossed Rs. 1 crore in revenue. "The boost in our revenue is because of our hero product, Mushpellets," Adam told Startup Pedia.

More than the financial success, the co-founders feel accomplished and content that they have contributed to the healthy lives of people across India. 

"We have 3,000 customers who regularly buy products from us. Moreover, farmers growing our mushrooms are also selling to many more people. I am happy that we are able to impact so many lives," said Adam.

He further added that they have managed to grow 1,50,000 kg of mushrooms so far, which is an accomplishment in itself in the last two years. He targets Rs. 3 crore in revenue in the current financial year, 2024-25.

The brand has received various funding and grants, including initial support from the Kerala Startup Mission and other government programs that support agriculture-related startups. In total, they have secured Rs. 3 lakh in funding and grants from the Kerala government.

From High-Paying Jobs to Entrepreneurship

For Adam, who received a Rs. 5 lakh salary from his last job, transitioning from being an employee to becoming an entrepreneur was a tough mindset shift journey.

"It was tough to leave the comfortable job and work on something that had no fixed timeline for yielding good profit. I went from Rs. 4-5 lakh per month to zero. However, my passion for a healthy brand and support from my wife made the journey easy," said Adam.

Raeesa, Adam's wife and co-founder, is also an engineer who worked earlier but left the job once her venture of handmade decorative products made good revenue.

"Now, I feel good that I am able to succeed in entrepreneurship and make an impact in others' lives," added Ada