Bombay Hemp Company Private Limited, a Mumbai-based startup centered around cannabis medical research, recently announced that it has successfully raised $2 million from the family offices of Achin Kochar of Vi-John Group, and Raghav Mohan & Bakshi & Riteesh Mohan Bakshi of RRB Energy Limited.
Before this funding round, the company had completed a pre-series round of $750000 with the participation of Prakhar Agarwal of Adept Ventures, AngelList Trust, and Arphi Electronics. In the initial rounds, the company collected around $2.33 million.
The company further states that it will use the funding amount to fuel up the production capabilities, customer acquisition activities, build omnichannel distribution, and improve the quality control activities. It further continues to state, the company has planned for a rapid business expansion to direct-to-customer nutrition, wellness, and health brands.
The company was founded in 2013 by Sumit Shah, Jahan Jamas, Chirag Tekchandaney, Avnish Pandya, Delzaad Deolaliwala, Yash Kotak, and Sanvar Oberoi. The startup deals in the supplies of premium hemp leaf extract along with industrial hemp products. The company is the country’s first startup to study the medical applications of hemp.
Ratan Tata, the chairman emeritus of Tata Sons in 2018, backed the company with $1 million in a seed funding round. However, several other investors who participated in the round include Yash Kela of Singularity Ventures, Nikhil Velpanur, an angel investor, Srinivaas Sirigeri of Shakti Group, and MA Tejani of Gits Food.
The company in 2017 collaborated with the Council of Scientific and Industrial Research (CSIR) to examine the medical application of cannabis for the treatment of epilepsy and breast cancer.
The company utilizes its hemp potential in medical technology and agriculture. It helps the local farmer in cultivating the crops by offering improved seeds and best practices in innovating Agro products and cultivation techniques. Currently, the company led its selling activities through its channel partners and e-commerce website.
The global industrial hemp market is likely to reach $15 billion with a 16% growth rate by 2027. However, the global medical hemp market is likely to grow to $46 billion by 2027 with around a 23% growth rate, Tekchandaney pointed out.
He further added he wishes to lead the company as a global player in the health and wellness space. “Throughout the world, consumer and regulatory attitudes regarding the medical use of hemp are shifting, and we see that shift daily as consumers purchase our arthritis, stress, and pain management products,” he said.
In addition, the market is likely to spur exponentially as the consumer behavior towards medical hemp is transforming rapidly throughout the world, and thereby exceptional shifts can be seen as people globally are buying such products to manage pain, stress, and arthritis.