Thai agritech startup Freshket secures US$23.5m Series B round

THAI agricultural technology (agritech) startup Freshket on Friday (May 20) announced it has raised US$23.5 million in Series B funding, led by PTT Oil and Retail Business (PTTOR), a subsidiary of state-owned oil and gas company PTT.

Other investors who participated in the round include venture capital firms Openspace Ventures, Volta Circle and Orzon Ventures, as well as Betagro Holding, holding company of agro-food conglomerate Betagro.

The fresh funds will be used to enhance Freshket's operations through supply chain technology development and improved service efficiency.

It also aims to expand beyond its current operations in Huahin and Bangkok and its vicinity in the next 1 to 2 years, with its eye on Pattaya, Phuket and southern Thailand, and north and north-eastern Thailand, Freshket told The Business Times. Product offerings will also be increased, with a focus on meat, processed food and specialty products.

Additionally, the new funds will be used to develop demand forecasting technology to reduce food waste and ensure transparency for its customers.

Founded in 2017, Freshket aims to provide consumers, hotels and food businesses with a variety of agricultural produce, sourced from local farmers and suppliers.

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Freshket noted: “30 per cent of Freshket products are currently sourced directly from farmers and the aim is to increase that to help improve farmers’ income.”

PTTOR had previously indirectly invested in Freshket through Orzon Ventures. The new investment from PTTOR is an opportunity for Freshket to become another food-supply avenue for PTTOR’s restaurant operators, noted Rajsuda Rungsiyakull, ORion Project senior executive vice-president of PTTOR.

Komjak Rattakham, Freshket chief of staff, said the funding round was part of the startup's strategy to achieve "rapid and progressive growth" in 2022.

"Freshket will grow alongside its business networks, OR's distribution channels as well as other joint investors, while developing and launching products and services shaped to meet the needs of more users.”