Mitra, Tierra Agrotech Merge for INR 787 Cr IPO to Build Food Platform
Overview
FMCG startup Mitra is merging with BSE-listed Tierra Agrotech to create an integrated food platform. The combined entity targets a INR 787 crore IPO by September 2026, aiming for INR 400 crore revenue in FY27. This strategic move aims to control the supply chain from seeds to finished food products.
Merger Forges New Food Platform
FMCG startup Mitra has agreed to merge with BSE-listed agritech firm Tierra Agrotech. The strategic amalgamation aims to establish a comprehensive, end-to-end food platform, integrating seed manufacturing with grain production and processing. This move is a precursor to a planned Initial Public Offering (IPO) of the merged entity, targeting ₹787 crore by September 2026.
IPO Ambitions and Financial Targets
Mitra's founder and CEO, Abhishek Kaushik, stated the merger provides the necessary strength and scalability for national reach, focusing on supply chain control and long-term value creation ahead of the IPO. The merged company projects consolidated revenue of ₹400 crore for the fiscal year 2027. Operational integration and capital restructuring are anticipated to conclude by the third quarter of FY27, pending final regulatory approvals from SEBI and NCLT.
Corporate Restructuring Details
The merger is structured as an amalgamation into Tierra Agrotech, the listed entity. This includes a capital reorganization involving reclassifying unused preference share capital into equity. The equity face value will be reduced from ₹10 to ₹4, with shares subdivided into ₹2 each. Accumulated losses are slated for write-off to clean the balance sheet and facilitate future equity issuances.
Complementary Business Strengths
Mitra, founded in 2023, operates as a D2C consumer brand selling essential goods like flour, pulses, rice, and spices primarily in North India. It boasts a network of 40,000 retail touchpoints and 500 distributors across 38 cities. Tierra Agrotech, based in Hyderabad, specializes in seed manufacturing, managing the entire lifecycle from cultivation to processing and sales. Its shares commenced trading on the BSE in May 2022.
Financial Snapshot and Funding
For the first nine months of FY26, Tierra Agrotech reported a total income of ₹67.7 crore, a 10% year-on-year increase, with its loss narrowing to ₹3.8 crore. Mitra's turnover for the first half of FY26 stood at ₹49.9 crore. Mitra had previously secured $1.3 million (₹11 crore) in a pre-Series A funding round in 2024, led by Bestvantage Investments.
The combined entity seeks to expand its product portfolio from seeds and agricultural inputs to finished food products, enabling it to tap new customer segments and drive revenue growth through bundled offerings and cross-selling.
