SRINAGAR: In a very significant development with far-reaching implications, Qul Fruitwall Farm Installations, has become the first private company to have a foreign private equity investment of Rs 60 crore. As such, the company has been valued at close to Rs 400 crores.
It heralds a major move from debt financing of businesses to a non-interest-bearing, profit-sharing model of growing businesses.
Qul is set to modernise the region’s horticulture industry, drawing attention from global investors and paving the way for a brighter future for the farmers of Jammu and Kashmir.
Founded in 2019 by a young and dynamic entrepreneur, Mir Khurram Shafi, Qul Fruitwall Farm is not just a company; it is a movement.
With his deep-rooted connections to the agriculture sector, Mir recognised the untapped potential of the horticulture industry in Jammu and Kashmir and embarked on a journey to transform the lives of farmers. He has already transitioned 3000 small and marginal growers to higher-yield apple orchards.
The recent funding, with over 80 per cent coming from Incofin Investment Management and a portion from Fiedlin Ventures, marks a historic moment for the private sector in Kashmir, opening doors for more foreign institutional capital. “The transaction of Rs 60 crore not only opens the door for more foreign institutional capital in an untapped region of Jammu and Kashmir but puts the spotlight on the tremendous potential of its horticulture industry,” Mir said.
Qul Fruitwall positions itself as a tech-enabled integrated platform for growers, covering the entire horticultural value chain. From orchard installation, development, and maintenance to controlled atmospheric storage facilities and digital supply chain integration with the national market, Qul is redefining how farmers operate in the region.
Jammu and Kashmir contributes more than two-thirds of the total apple production in India. However, the industry faces challenges such as market intervention, lack of infrastructure, logistical support, and a poor transportation system. Qul aims to address these issues by leveraging technology and innovative farming techniques.
“Our mission is to transform lives and improve livelihood by at least quadrupling in five years the apple yield from the current levels of 12 metric tonnes per hectare,” an excited Mir said. Qul has already successfully transitioned over 5,000 farmers to high-tech, high-density farming, boosting farm income four to six times.
The investment is a significant step towards sustainable and efficient farming practices in the region. Rahul Rai, a partner at Incofin, expressed their excitement, stating, “We are excited by Qul’s ambition to take Indian apples to the world stage.”
“Qul bundles the best of Kashmiri entrepreneurship with international expertise resulting in a resilient and sustainable orchard platform,” Wim Wienk, Chairman of Fiedlin India, was quoted as saying. “State-of-the-art farm techniques are fully adapted to local circumstances thereby enhancing productivity, lowering farm inputs and thus increasing farmers’ incomes. Qul‘s early-stage profitability underscores the viability of the orchard platform. The scalability makes our investment in Qul appealing.”
Qul‘s unique strengths in operations, biotechnology, and digital technologies have positioned it as a leader in the sector. The company plans to scale its model to impact 30,000 farmers in the coming years, targeting revenues of Rs 1,000 crores in the next five years.
With a strong commitment to cutting-edge technology, sustainable practices, and farmer welfare, Qul is not just a startup; it’s a beacon of hope for the entire Himalayan region. The equity infusion from Incofin and Fiedlin reflects confidence in Qul’s vision, paving the way for a brighter and more resilient future for temperate crops in Jammu and Kashmir.
Qul, a Kashmiri word for tree and the universe in Arabic embodies the company’s mission of being in the business of the “universe of trees.” Beyond operational relevance, Qul seeks to represent the social and spiritual connotation of a business that gives back more wealth and wisdom, echoing the ethos of the fabled speaking tree of the Orient.
As Qul expands its operations beyond apples, venturing into cherries, plums, kiwis, pears, and more, the startup is poised to lead the way in transforming horticultural farming, ensuring a prosperous and sustainable industry for temperate crops. The recent investment is not just financial support; it’s an investment in the future of agriculture in the valley, promising water savings, employment opportunities, and sustainable farming practices for generations to come.
Inval, acting as an exclusive strategic advisor to Qul for this transaction, is playing a crucial role in supporting the startup’s growth. The advisory outfit, started by senior development banking and corporate advisory professionals, aims to unshackle entrepreneurship in the micro markets of India, aligning with Qul’s vision for sustainable and profitable agriculture in Tier II and Tier III cities.
Incofin Investment Management, the Belgium-based impact investor, sees Qul as a transformative force in the agri-food value chain. With a team of over 100 professionals globally, Incofin manages assets of over 1.4 billion Euros, supporting promising entrepreneurs in emerging markets. Fiedlin is an Indian growth capital platform for SME.
As Qul Fruitwall Farm Installations continues its journey, it not only cultivates apples but also a future where horticulture in Kashmir becomes synonymous with innovation, sustainability, and prosperity. “The goal is to create one of most transformative, ground up, environmentally conscious, socially aware and profitable businesses,” Khurram said. “I want to create an institution out of Kashmir that outlives us and the generations to come.”
