Our Food to invest $200m in Telangana in micro food processing units

Our Food Pvt Ltd, a portfolio company of 3Lines’ Fund I, said that it will invest more than $200 million in the southern Indian state of Telangana.

The technology-driven agribusiness platform has signed a memorandum of understanding in this regard with the Telangana government for establishing more than 20,000 micro food processing units across the state.

Balareddy – CEO of Our Food Pvt Ltd said: “We have developed eight different machine types to process agricultural produce such as rice, pulses, spices, groundnut, millets, turmeric and a few vegetables. We are looking at setting up 5,000 units per year in the State.

“3Lines Venture Capital has been instrumental in accelerating our growth through seed investment in our journey since 2017 to position the business to scale and would play an important role in raising a $35M equity-cum-debt to further scale the business.”

According to Our Food Pvt Ltd, farming entrepreneurs in rural India will be given end-to-end solutions for establishing food processing units. The solutions include loans from banks, installing processing machinery, and also providing them operational training.

Our Food also plans to help the farmers in selling their produce directly to bulk buyers or to sell it via its brand.

The agribusiness platform said that the agreement with the Telangana government will supplement the process of installing the food processing units near the farms apart from creating rural employment and enhancing farmer’s income.

Krishna Kunapuli – Founder of 3Lines said: “Decentralizing the food processing is the future of agri-industry, which is also a very hard problem that needs unmatched execution at the field level and a deep business knowledge. I found this unique blend of a twin skillset in Balareddy and committed to the model’s success.

“3Lines India Chairman Mr. Lalit Jalan’s deep operational expertise and guidance would be key for the next phase of Our Food’s growth.”