To: SUNICON Ventures

Investment Memorandum

Univia Private Limited.

EXECUTIVE SUMMARY:

Univia: Bridging the gap between innovation and tradition in

Indian agriculture through its "phygital" model, empowering
farmers with personalized solutions for sustainable growth and
prosperity.

Agri-Input MARKET SIZE: Problem: Scattered markets, unreliable

inputs, and siloed knowledge hinder
Indian farmers' prosperity.
INDIA
MARKET SIZE: Solution: expert-guided platform unites
USD 17.6 Billion CAGR farmers with knowledge, resources, and
quality inputs for maximized yields and
(2023) empowered choices.
12.5%
USD 30.5 Billion
Projected (2027) PRODUCTS:

Mobile App: Personalized farm advisory,

market rates, access to genuine inputs.
Founders: Ravikumar Jasubhai Patel (Ravi Varmora) CEO
Univia Doctors: On-field expertise, soil &
(Founder has over 10+ years of experience in agriculture and weather analysis, tailored recommendations.
leadership roles)
Private Label Products: seeds, fertilizers,
Founder-Market Fit: GOOD equipment, more.

 Current Team Size: 35+

Future Roadmap: Data-driven insights,
 Revenue by 2023 7.7 Crore INR (Growth of 420%) precision agriculture tools, financial
 Business Model: B2B & B2C services, e-commerce platform.

 Valuation: ≃ 91.26 crore INR

Investment: “Ideal”
Univia presents a compelling investment opportunity in the rapidly growing Indian Agri-input market.

Thriving Market with High Growth Potential: The Indian Agri-input market is fuelled by a CAGR of 12.5% and Univia is well-
positioned to capitalize on this growth, addressing the major pain points of Indian farmers through its innovative
"phygital" model.

Strong Traction and Positive Unit Economics: Univia boasts over 940+ Input Retailers, 35+ FPOs, and 40,000+ Connected
Farmers, primarily focused in Gujarat and the company projects INR 29 Cr+ sales in FY2024, representing a 3x increase from
2023 and with 65% M-o-M repeat purchase rate.

Strategic Expansion and Founder Commitment: Univia's disciplined approach focuses on saturating Gujarat before
expanding to other states, ensuring deep market penetration and Founder holds a significant majority stake (75%+),
demonstrating long-term commitment and alignment with investors.

Ideal Valuation with Upside Potential: At an estimated valuation of INR 90 Cr, a (5-15%) stake offers significant upside
potential. Univia has the potential to reach a INR 1,000 Cr+ valuation within 5-10 years as it expands nationally.

While profitability is not immediate, revenue growth is impressive and operational efficiency shows improvement . The
investment allows the founder to retain control while accelerating expansion plans. This investment is an opportunity to
contribute to the transformation of Indian agriculture and empower farmers which aligns with the SUNICON’s Vision.
COMPANY OVERVIEW:
Univia Private Limited : Revolutionizing Indian
Agriculture through Technology and Expertise
Univia is a rising star in the Indian Agritech scene,
aiming to revolutionize the agricultural landscape
for the benefit of farmers and the nation at large.
They offer a unique "Phygital" approach,
combining the power of modern technology with
on-the-ground expertise.
This translates to a comprehensive suite of 360°
agronomy solutions supporting farmers
throughout their entire journey, from soil testing
to harvest. Their flagship products include:
 Univia App: A user-friendly mobile platform
providing personalized farm advisory, real-
time market rates, and access to genuine
Agri-inputs.
MARKET OVERVIEW :
Current Indian Agri-Input Market:
Market size: The Indian Agri-inputs market is estimated
at 17.6 billion USD and is expected to grow at a CAGR of
12.5% by 2025, driven by factors like increasing
government focus on agriculture, rising farm incomes,
and adoption of new technologies. (Source: IBEF, FICCI
Agri Business Summit 2023)
Distribution landscape: Traditional channels dominate,
with rural retailers constituting over 99% of the
market. However, direct-to-farm models and online
platforms are gaining traction. (Source: PWC India
Agritech report 2023)
Challenges: Farmers face issues like adulterated inputs,
lack of access to quality data and expert advice, and
unfair pricing. This leads to suboptimal yields and
income instability. (Source: NITI Aayog report on
"Challenges and Opportunities in Indian Agriculture,"
2022)
 Univia Doctors: A team of dedicated
agricultural experts offering tailored
guidance based on in-depth soil, water, and
weather analysis.
 Univia Private Label Products: A high-
quality and competitively priced portfolio of
seeds, crop nutrition solutions, crop
protection products, farm equipment, and
even organic options available exclusively to
Univia retailers and FPOs.
Univia's impact is evident in increased yields,
higher incomes, and empowered farmers making
informed decisions.
Univia's mission is to empower every Indian farmer
to profit from a good harvest each time. Upgrade
every farmer's living standard, knowledge,
availability of genuine Agri Inputs, and accessibility
to higher produce prices by providing complete
agriculture solutions right at the farmer's fingertip.
Forecasted Indian Agri-Input Market:
The market is expected to witness continued growth,
reaching $30.5 billion by 2027. (Source: Mordor
Intelligence report on "India Agri-inputs Market -
Growth, Trends, Forecasts (2022 - 2027)")
Technology adoption: Agritech solutions like Univia's
are expected to see increased demand, driven by their
ability to address farmer pain points and improve
efficiencies. (Source: NASSCOM report on "Agritech in
India: Emerging Trends and Growth Prospects," 2023)
Shifting preferences: Farmers are likely to increasingly
seek personalized solutions, transparency, and direct
access to quality inputs. (Source: Bain & Company
report on "The Future of Farm Inputs in India," 2022)
Trends:
Precision agriculture: Growing adoption of data-driven
techniques for targeted input application and improved
yields. (Source: ASSOCHAM report on "Precision
Agriculture in India: Transforming Agri-Business," 2023)
Sustainability: Demand for organic and eco-friendly
inputs is rising. (Source: APEDA report on "Organic
Farming in India," 2023)

Direct-to-farm models: These models are disrupting

traditional distribution channels, offering farmers better
prices and access to quality inputs. (Source: Invest India
report on "Agritech: The Next Wave of Growth in Indian
Agriculture," 2022)

TEAM OVERVIEW:
Univia boasts a team of experienced professionals with diverse backgrounds in agriculture, technology, and
entrepreneurship.
Founder & CEO

 Ravikumar Jasubhai Patel (Ravi Varmora): Possesses 10+ years of experience in agriculture and
leadership roles within Varmora Plastech, Caterpillar. Has a proven track record of building successful
businesses.
Leadership Team:

 Sanjay Panchal, CSO: Holds an MSc in Agriculture and brings 25+ years of experience in the Agri-Input
industry across sales and marketing roles at BASF. Offers expertise in people development and
strategy execution.
 Deepak Pareek (Advisor): Agri Industry Expert: A seasoned professional with deep knowledge of the
Indian agricultural landscape. Offers valuable insights and guidance.
 Vipul Patel, Chief Financial Officer: Brings 18+ years of experience in accountancy and finance, having
worked with companies exceeding INR 100 crore revenue. Holds a CA and MBA qualification.
 Ketan Modi, Chief Operating Officer: Founded an EdTech startup and possesses 20+ years of
experience in training, leadership, and scalable business operations.
 Chandran Purohit, Finance & Strategy Expert: Offers expertise in financial planning and corporate
strategy.
 Hitesh Devaliya, VP-Operations: Holds 20+ years of experience in various management roles and
brings passion for training and leadership.

Founder-Market Fit:
Strengths:

 Experience: Possesses relevant agricultural experience and a successful entrepreneurial background.

 Understanding: Likely understands the challenges faced by Indian farmers and retailers through past
exposure.
 Drive and Vision: Demonstrates a clear vision for Univia's impact on the agricultural landscape.
Potential Concerns:

 Direct agricultural expertise: While Ravikumar's experience is relevant, it might not encompass the
specific depth of knowledge required for navigating the intricacies of the Agri-Input market.
 Team composition: While diverse, the team lacks dedicated agronomists or data scientists potentially
crucial for Univia's technological edge.
  The team size seems relatively small for the ambitious goals outlined in the pitch deck. Consider
potential scalability challenges.
Overall:
Varmora demonstrates good potential for founder-market fit. However, strengthening the team with
specific agricultural expertise and potentially considering partnerships with research institutions or data
science professionals could further solidify his leadership and Univia's position in the market.

PRODUCT:

Univia's product portfolio revolves around its "Phygital" approach, combining a user-friendly mobile app with
on-the-ground expertise to offer farmers a comprehensive 360° agronomy solution. Here's a breakdown of
their current offerings and future roadmap:

Current Products:

Univia App: Serves as the central hub, providing:

 Personalized Farm Advisory: Based on data and expert analysis, offering crop-specific
recommendations for inputs, practices, and market trends.
 Real-time Market Rates: Enables farmers to make informed decisions about buying and selling
agricultural produce.
 Access to Genuine Agri-inputs: Connects farmers to a network of verified retailers and FPOs,
ensuring product quality and fair pricing.
Univia Doctors: A team of agricultural experts who conduct:

 Soil, Water, and Weather Analysis: Provide in-depth insights to tailor recommendations for optimal
yield.
 Field Visits and Consultations: Offer personalized on-farm guidance and address specific farmer
concerns.
Univia Private Label Products: A range of high-quality and competitively priced inputs, including:

 Seeds: Offered in various crop varieties suited to regional conditions.

 Crop Nutrition Solutions: Fertilizers, micro-nutrients, and bio-stimulants for balanced plant growth.
 Crop Protection Products: Pesticides, fungicides, and herbicides to combat pests and diseases
effectively.
 Farm Equipment: Essential tools and machinery for efficient farm operations.
 Organic Products: Catering to the growing demand for sustainable agricultural practices.

Future Product Scope:

Univia's roadmap envisions expanding its product portfolio in several ways:

 Data Analytics and AI-driven Insights: Integrating advanced data analytics and AI into the app for
more precise recommendations and yield predictions.
 Precision Agriculture Solutions: Introducing tools and services for targeted input application and
resource management.
 Financial Services: Exploring partnerships to offer microloans, crop insurance, and other financial
products to farmers.
 E-commerce Platform: Establishing a robust e-commerce platform for seamless online purchase of
Agri-inputs.
 Expansion of Private Label Products: Launching new product categories and increasing the overall
variety offered.

Product Differentiators:
Univia stands out in the market with several key differentiators:

1. "Phygital" Approach: The unique blend of technology and on-the-ground expertise caters to the
specific needs of Indian farmers.
2. Personalized Farm Advisory: Tailored recommendations based on individual farm data and expert
analysis set them apart from generic solutions.
3. Focus on Quality and Affordability: Univia addresses the crucial issue of adulterated inputs by
connecting farmers directly to reliable sources and offering competitive prices through private label
products.
4. End-to-End Support: From soil testing to harvest, Univia provides comprehensive assistance
throughout the agricultural cycle.
5. Commitment to Sustainability: Offering organic products and promoting sustainable practices
resonates with the growing demand for eco-friendly agriculture.

By capitalizing on these strengths and continuously innovating its product offerings, Univia can solidify its
position as a leading provider of 360° agronomy solutions for Indian farmers.

Potential Product Concerns for Univia:

While Univia's product portfolio shows promise, here are some potential concerns to consider:

Current Products:
App Adoption: Encouraging widespread adoption of the app among farmers, particularly those with
limited technology literacy, could be challenging.
Univia Doctor Availability: Scaling the Univia Doctor team to meet the potential demand across a large and
diverse agricultural landscape could be difficult.
Private Label Product Quality: Maintaining consistent quality and competitive pricing for private label
products across various regions and suppliers requires robust sourcing and quality control practices.
 Future Products:
Data Privacy and Security: Implementing robust data collection and security measures is crucial to gain
farmer trust and comply with regulations.
AI and Precision Agriculture Adoption: Acceptance and affordability of AI-powered solutions among
farmers, especially smallholders, needs careful consideration.
E-commerce Integration: Building a user-friendly and efficient e-commerce platform while ensuring
accessibility in rural areas requires careful planning.

Competitor Analysis:

Company Advantages Revenue Team Comparison with Univia

Estimate (INR Size
Crore)
DeHaat Strong rural network, 350 1000+ Larger scale, stronger financial
microfinance partnerships, services integration, less focus
data-driven insights on private label products
Ninjacart Direct sourcing relationships, 1200 1500+ Larger scale, wider product
logistics infrastructure, B2B range, less emphasis on
focus personalized advice
AgroStar Extensive product catalog, 200 500+ Larger product range, broader
established distribution geographic reach, less focus on
network, mobile app platform on-the-ground expertise
Gramophone AI-powered farm advisory, 50 200+ Strong technological focus,
focus on data analytics, smaller scale, limited product
microlearning modules offering
BharatAgri Farm management platform, 80 300+ Data-driven approach, insurance
crop insurance marketplace, integration, limited private label
market linkages products

Univia's "Phygital" approach differentiates it from purely tech-driven or offline-focused companies.

Its personalized farm advisory sets it apart from companies with generic recommendations.

Its focus on quality and affordability through private label products addresses a crucial farmer need.

Its end-to-end support provides a comprehensive solution compared to companies offering specific services.

Key Considerations:

Univia's smaller scale compared to some competitors requires strategic scaling plans.

Its team size might need expansion to match its ambitious goals.

Further highlighting data analytics and AI integration could strengthen its competitive edge.

RISKS AND CHALLENEGES:

Univia-Specific Risks:
Market Adoption: Convincing farmers, particularly those with limited technology experience, to adopt the
Univia app and services.
Scaling the Univia Doctor team: Ensuring sufficient and accessible expert support across a vast and diverse
agricultural landscape.
Maintaining private label product quality and affordability: Sourcing, quality control, and pricing across
various regions and suppliers will be crucial.
Data privacy and security: Implementing robust measures to gain farmer trust and comply with regulations.
Scalability: Adapting infrastructure and team to support rapid expansion and changing needs.

Industry-Wide Challenges:

 Fragmented market: Reaching numerous small and medium players across diverse regions necessitates
strategic distribution channels.
 Competition: Established players and emerging startups vie for market share, requiring constant
innovation and differentiation.
 Limited internet access and digital literacy: Bridging the digital divide remains crucial for wider Agritech
adoption.
 Infrastructure gaps: Inadequate storage, transportation, and logistics infrastructure can hinder
efficiency and market access.
 Unpredictable weather patterns: Climate change and extreme weather events pose risks to crop yields
and farmer livelihoods.
 Government policies: Fluctuations in government policies and regulations can impact market stability
and investment decisions.
Additional Considerations:

Sustainability: Promoting environmentally friendly practices and addressing the impact of agriculture on
climate change is crucial.
Financial inclusion: Enabling access to credit and other financial services for smallholder farmers is essential
for growth and resilience.
Farmer education and capacity building: Continuous education and training programs are necessary to
empower farmers and enhance their adoption of new technologies.
By proactively addressing these risks and challenges, Univia can navigate the dynamic Indian Agritech
landscape and contribute to a more sustainable and prosperous agricultural future for the nation.

VALUATION OVERVIEW:
The Enterprise Value (EV) of Univia, at 91.26 Crore, represents the total value of the company, including its
assets and liabilities. This figure provides a crucial metric to assess Univia's worth and make informed
investment decisions.
To arrive at the 91.26 Crore figure, we meticulously employed the Discounted Cash Flow (DCF) method:

Cash Flow Projection: We meticulously analysed Univia's current performance and growth trajectory,
forecasting a 12.5% annual growth rate for its cash flows (2023 (Year 1: 7.7 Cr) over the next five years based
on Univia’s and Agri-input industries growth.
Discounting Future Cash Flows: Recognizing the time value of money, we discounted these projected cash
flows back to their present value using a Weighted Average Cost of Capital (WACC) of 8.71%. This WACC
incorporates both the risk-free rate of 7.14% and a risk premium reflecting Univia's specific industry risks.
Accounting for Long-Term Growth: To capture the value beyond the explicit forecast period, we estimated a
terminal value using the perpetuity growth model. This terminal value, representing the long-term cash flow
stream, was then discounted back to the present.
Debt Adjustment: Remember, Univia has an outstanding debt of 1 Crore. We factored this in by subtracting
the debt from the unadjusted EV, arriving at the final figure of 91.26 Crore.

Transparency in Assumptions:
We understand that valuation rests on key assumptions. Here's a glimpse into the ones we used:

 Growth Rate: The projected 12.5% annual growth rate for Univia's cash flows reflects their optimistic
future potential. However, this number is subject to external factors and market dynamics.
 Discount Rate: The WACC of 8.71% is based on publicly available data and industry benchmarks.
However, different methodologies and assumptions could yield slightly different rates.
 Terminal Value Calculation: The perpetuity growth model for the terminal value relies on the long-term
growth rate assumption. Alternative approaches could be explored to assess sensitivity.

Beyond the Numbers:

While the 91.26 Crore figure paints a valuable picture, remember that valuation is more than just a single
number. We would have to consider these additional aspects:

Qualitative Factors: Beyond quantitative measures, factors like management expertise, technology innovation,
and market competition will significantly influence a company's true value.

REVENUE MODEL:
Who are their customers?
  Agri-input retailers seeking better margins and wider reach.
 Farmer producer organizations (FPOs) aiming to empower their members.

What value does Univia offer?

 Retailers: Reduced costs, optimized inventory, access to exclusive products, and a digital platform for
24/7 operations.
 Farmers: Affordable and quality inputs, personalized farm advice, and digital tools for informed
decision-making.

How does Univia make money?

 Onboarding fee: A one-time charge for joining the Univia network (₹11,000 per retailer/FPO).
 Product margins: Univia earns a commission on sales of both branded and private label agricultural
inputs.
 Branded products: 3-5% margin.
 Private label products: Higher margin of 40%, offering greater profitability.
 Future potential: Transaction fees for order fulfillment or payment processing, and data insights sales.

Current performance and future plans:

 Strong base: 940+ retailers onboarded, ₹29 Crore+ in sales, 65% repeat purchase rate, and over 40,000
connected farmers.
 Ambitious growth: Expansion to 7 states by 2025, targeting 10,000 retailers, and aiming for ₹450 Crore
in revenue by 2027.

Key takeaway:

Univia's revenue model combines upfront fees, product margins, and the potential for future income
streams. Their focus on network expansion, product diversification, and technology positions them for
significant growth in the Indian agricultural input market.

FINANCIAL HIGHLIGHT:
Revenue: Strong revenue growth of 420%, reaching ₹7.7 crore in March 2023 from ₹1.84 crore in March 2022.
This indicates significant market traction and potential.
Expenses: Increased spending, as expected with growth, from ₹3 crore to ₹9.57 crore. However, the expense-
to-revenue ratio decreased slightly, suggesting improved operational efficiency.

Profitability: Net loss increased from ₹1.16 crore to ₹1.86 crore. This is likely due to investments in growth
initiatives like marketing and expansion.

Earnings per Share (EPS): Decreased from (₹17.59) to (₹28.13). This reflects the current loss position but
should be considered in the context of future growth potential.

Other Financial Highlights:

 Subscription income: Increased significantly from ₹7 lakh to ₹34 lakh , highlighting a growing recurring
revenue stream.
 Advertising and communication expenses: Increased investments in brand awareness and customer
engagement.
 Legal fees: Decreased, suggesting improved operational efficiency and reduced legal issues.
 Other current liabilities: Unexplained increase of ₹3 crore requires further investigation and
clarification from Management.
 Purchases: Increased from ₹1 crore to ₹7 crore, possibly due to inventory buildup or expansion plans.

Overall: Univia demonstrates impressive revenue growth with potential for market capture. However,
profitability remains a concern. Careful monitoring of expenses, efficient resource allocation, and clear
strategies for achieving profitability are crucial for future success.

List of Major Shareholders:

Name of Shareholder No of Share % of Share

Ravikumar Jasubhai Patel 5,07,689 76.67%
Rachita Modi 36,422 5.5%
Tarak Patel 33,112 5%
Vrajlal Kalaria 22,025 3.33%
Sanjay Chimanlal Panchal 19,866 3%
Krunal BharatKumar Shah 16,556 2.5%

INVESTMENT DECISION: “IDEAL”

Univia presents a compelling investment opportunity to tap into the rapidly growing Indian Agri-input market,
estimated at $17.6 billion and projected to reach $30.5 billion by 2027, fueled by a robust CAGR of 12.5%. This
document delves deeper into the reasons why Univia stands out as an ideal investment choice.

1. Addressing Farmers' Pain Points with a Unique "Phygital" Model:

Problem: Indian farmers face fragmented markets, unreliable inputs, and limited access to expert advice,
leading to suboptimal yields and income instability.
Solution: Univia bridges this gap through its innovative "phygital" model, seamlessly blending mobile
technology with on-the-ground expertise.
Value Proposition: Farmers gain access to:

 Personalized Farm Advisory: Tailored recommendations based on data and expert analysis.
 Genuine Agri-inputs: Direct connection to reliable retailers and FPOs for quality inputs at competitive
prices.
 On-field Expertise: Univia Doctors provide soil testing, consultations, and field visits for targeted
solutions.
 Private Label Products: High-quality and affordable seeds, fertilizers, equipment, and organic options.

2. Strong Traction and Impressive Growth Trajectory:

Univia has established a strong network, already boasting over 940+ Input Retailers, 35+ FPOs, and 40,000+
Connected Farmers, primarily focused on Gujarat.
This translates to projected FY2024 sales of INR 29 Cr+, a 3x increase from 2023, with a remarkable 65% M-o-
M repeat purchase rate, indicating high customer satisfaction.
The company offers a diverse portfolio of over 20+ private label products across various categories, providing
farmers with choice and control over their inputs.

3. Strategic Expansion and Founder Commitment:

“Univia exhibits a disciplined and focused approach, strategically saturating the Gujarat market before
expanding to other states, ensuring deep market penetration and efficient resource allocation”
The founder, Ravi Varmora, holds a significant majority stake (75%+), demonstrating a strong personal
commitment to Univia's success and aligning his interests with those of investors.
4. Ideal Valuation with Significant Upside Potential:

The estimated valuation of INR 90 Cr offers an attractive entry point, especially considering the company's
growth potential.
Owning a (5-15%) stake provides investors with significant upside potential, as Univia has the potential to
reach a INR 1,000 Cr valuation within 5-10 years through national expansion.
  While profitability is not immediate, Univia demonstrates impressive revenue growth and improving
operational efficiency, indicating a clear path to sustainable profitability.
 The investment structure allows the founder to retain control while enabling faster expansion, ensuring
continuity and alignment of interests.

Investing in Univia is not just a financial decision; it's an opportunity to be part of a transformative journey.
SunIcon can contribute to empowering millions of Indian farmers, fostering sustainable agricultural
practices, and driving inclusive economic growth. Which matches perfectly with SunIcon Vision.

EXIT OPPORTUNITY:

Investing in Univia presents multiple potential exit routes for investors, each with its own advantages and
limitations:

Acquisition:

 Strategic Acquisition: A larger agribusiness or technology company could acquire Univia for its
technology, customer base, or market access. This is a likely scenario given the growing interest in
Agritech and the strategic fit Univia offers.
 Trade Sale: Competitors or established players in the Indian agriculture sector could acquire Univia to
eliminate competition or expand their offerings. This option may offer a quicker exit than strategic
acquisition.

Initial Public Offering (IPO):

Listing on a public stock exchange would provide liquidity for investors and potentially unlock significant value.
However, an IPO typically requires several years of consistent profitability and strong financial performance,
which Univia is still working towards.

Secondary Sale:
SunIcon can sell their shares to new investors through a secondary market transaction. This may be suitable if
other exit options are delayed or unavailable. However, the available valuation and liquidity might be lower
compared to other options.