Founded in 2016 by Selvakumar Varadharajan, VilFresh has emerged as a transformative player in India’s agricultural landscape.
Based in Coimbatore, Tamil Nadu, the startup aims to close the urban-rural divide that has long put farmers at a disadvantage, while simultaneously offering urban consumers access to premium, fresh agricultural products.
Bridging the Rural-Urban Gap
In rural India, a staggering proportion of the consumer price for agricultural products does not reach the farmers.
Reports suggest that less than 50% of the price paid by consumers for many commodities actually benefits the farmers who cultivate them.
This discrepancy arises from a convoluted supply chain riddled with middlemen, resulting in low profits for farmers and inflated prices for consumers.
Selvakumar’s inspiration for founding VilFresh stemmed from his personal experiences and the pressing need to reform this inequitable system.
The motivation for this venture became personal for Selvakumar when he faced challenges in sourcing high-quality agricultural products for his family.
His young daughter’s dietary needs highlighted the gap in the market for fresh, preservative-free products.
With two decades of experience on the farm and a decade of urban exposure, he was uniquely positioned to understand both sides of the equation—rural challenges and urban demands.
Empowering Farmers and Youth
VilFresh’s business model centers around direct procurement from farmers, which eliminates middlemen and ensures that a more substantial portion of consumer payments goes back to the agricultural community.
By focusing initially on milk, VilFresh established a streamlined process where VillagePreneurs collect milk from farmers and deliver it to urban markets within 162 minutes.
This rapid turnaround ensures freshness and quality while providing farmers with a revenue increase of 25% to 35% compared to traditional channels.
The impact of this model extends beyond dairy. VilFresh plans to utilize the same distribution network for a variety of agricultural products, guaranteeing farmers 40% to 60% better returns on fruits and vegetables.
Furthermore, the startup doesn’t just focus on selling products but also on providing essential agro-inputs at competitive prices, thus lowering the overall cost of farming.
A Three-Dimensional Impact
The essence of VilFresh lies in its three-dimensional impact model:
1. Farmers
At the heart of VilFresh’s model are the farmers, who receive direct benefits from eliminating middlemen in the supply chain.
Traditionally, farmers have been earning only a small fraction of the consumer price for their produce, but VilFresh’s model ensures they retain a significantly larger share of the earnings.
2. Rural Youth
In addition to benefiting farmers, VilFresh empowers rural youth by offering them opportunities to become “VillagePreneurs.”
These young entrepreneurs collect and distribute products, earning substantial income while staying connected to their rural roots.
3. Urban Consumers
VilFresh is also redefining the way urban consumers engage with the food supply chain.
Urban customers are increasingly seeking fresh, chemical-free, and preservative-free products, but access to such high-quality agro-produce has often been limited.
VilFresh fills this gap by providing “Farm to Home” deliveries of fresh, unadulterated products such as A1 and A2 milk, vegetables, fruits, and other dairy products like paneer, curd, and butter.
A Strong Community and Sustainable Practices
At its core, VilFresh fosters a community-driven approach. The startup partners with local producers, homepreneurs, and micropreneurs, thereby amplifying the economic benefits within the community.
The platform offers a dream come true for local producers, effectively doubling their margins while also promoting the sales of homemade products like pickles, masala powders, and sweets.
The company also emphasizes sustainable practices, encouraging farmers to adopt efficient farming techniques that not only increase yield but also preserve the environment.
This commitment to sustainability is evident in their supply chain model, which focuses on local sourcing and minimizes transportation-related emissions.
Expanding Product Categories
While VilFresh has made significant strides with dairy and certain processed foods, the future looks even more promising with plans to expand into other product categories.
Fruits and vegetables are in the pipeline, and the startup aims to leverage its distribution model to bring these products to urban markets at competitive prices.
With a keen eye on maintaining the quality and freshness that consumers demand, VilFresh is poised to scale its operations while ensuring that its core values of fairness and sustainability remain intact.
A Bright Future for VilFresh
In just a few years, VilFresh has not only established itself as a pioneer in transforming India’s agro supply chain but also as a champion for farmers and rural youth.
With its unique approach of directly connecting farmers to consumers, the startup is setting a precedent for sustainable agricultural practices while significantly enhancing the livelihoods of rural communities.
