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After a successful 20-year corporate engineering career, Karan Hon decided to pursue his dream of trying to solve the problems faced by Indian farming.

Hon co-founded Farmpal in 2017. The company’s mission is to empower farmers by connecting them to buyers directly using its innovative technology which facilitates an end-to-end post-harvest supply chain. Its mobile app matches farmers to businesses like hotels, retailers and caterers in a matter of hours, reducing the cost to consumers, increasing profits for farmers and dramatically reducing food wastage. Read more about the Farmpal story.

We spoke to Hon about life at a startup, the importance of data for decision making and how the business secured angel investment.

Q&A

What was your biggest motivation for starting Farmpal?

Karan Hon: The most important thing for me has always been the purpose behind Farmpal. I wanted to help out Indian farmers, because they are really struggling. I also wanted to supply fresh and hygienic food for Indian consumers. That’s what drives me.

What personality traits have helped you get to where you are?

Hon: Anyone starting out as an entrepreneur or founder needs to have passion and persistence. Without these you won’t be able to overcome the numerous hurdles you encounter every day. There are lots of risks, lots of unforeseen challenges, but with enough passion and persistence, you will find the solutions you need.

How do you assess a business opportunity?

Hon: Every opportunity has its risks and its rewards. So what are the risks involved and how we can mitigate that risk? What problem are we solving and is that really a problem for the customers? Can customers pay for solving that problem, or are we just creating a nice product or service for the customer? When we were assessing the Farmpal opportunity, we knew we were solving a problem for both the farmers and the customers, so both were ready for our services.

What kept you up at night when you were starting Farmpal?

Hon: The biggest challenge for us was that we are dealing with perishable fruits and vegetables. And we didn’t have accessible data to assess demand, supply level, margins and profits and losses in a timely way. The data was in different places on various Excel spreadsheets. We needed it on a daily basis, but it literally took us until the end of the month to work out.

At what point on the journey did you decide to switch to a cloud ERP?

Hon: After a year in business we knew we wanted to get accounts payable and receivable in a single system. We also wanted to get all our inventory in one place, so we could access clear historical data about consumer demands, which varies on a seasonal basis. That’s why we started with inventory management and accounts payable and receivable modules with NetSuite SuiteSuccess. Then we started to explore the various other options like Route Planning and Human Resource Management. Next we'll look at transport management. Our system will grow with us.

What advantages have you experienced now that you have access to real-time data?

Hon: You can’t rely on monthly reporting. It should come on a daily basis. That helps us to understand the finances, and how we are growing. We know what’s coming in terms of demand and in terms of customer acquisition. All this is possible when you have the data in place.

Did technology help you navigate the challenges of 2020?

Hon: We use technology very effectively at Farmpal. All employees used to be in the office, but now many work from home to support those in transportation or production. We've realised this works well and it’s actually helped to remove some costs.

Farmpal has received significant outside investment. How did it come about?

Hon: We started with seed investment and then we had two rounds of angel investment. The angel investors believed that we were solving a critical problem, and they believed in the team. We used to go to road shows and present our ideas. Investors liked our use of technology, data and insights, because it gave them a clear idea of exactly how we're going to achieve our vision. Now we are talking with venture capitalists from India and globally.

In your opinion, what are investors looking for?

Hon: Investors are looking for opportunity in terms of market size. How big is the opportunity and how much can be captured? And then, is there the right team and the right expertise who can successfully capture that opportunity and create a viable business? If those two things are in place, investors will show interest.

What advice would you give to entrepreneurs looking to build a startup?

Hon: We started using NetSuite after a year in business. But if possible, entrepreneurs or startups should get a cloud ERP earlier. If you adopt the right technology from day one, then you can effectively capture data at every transactional and operational level. The insights and analysis will help you build a strategy that works for your customers much faster.