FMCG Startup Mitra To Merge With BSE-Listed Tierra Agrotech, Eyes IPO This Year

Tierra Agrotech’s stock was trading at INR 46 after dropping 5% post the merger announcement.

FMCG startup Mitra has merged with BSE-listed agritech company Tierra Agrotech with plans to list the merged entity with a proposed INR 787 Cr IPO by September 2026. The merged entity will bring together Tierra’s seed manufacturing capabilities with Mitra’s grain production and processing capabilities to create an end-to-end food platform.

“As we prepare for our IPO, this structure gives us the strength, scalability, and credibility needed to build a truly national food platform around supply chain control, profitability, and long-term value creation,” Mitra’s founder and CEO Abhishek Kaushik noted.

As per Tierra’s regulatory disclosures, the merger is structured as an amalgamation into the listed transferee entity, alongside a capital reorganisation.

This would include reclassifying unused preference share capital into equity, reducing the equity face value from INR 10 to INR 4 and sub-dividing shares into INR 2 each, while writing off accumulated losses to clean up the balance sheet and create headroom for future equity issuances.

Post the merger, which currently awaits final approvals from SEBI and NCLT, the entity aims to post consolidated revenue to the tune of INR 400 Cr for the fiscal year FY27. The startup expects to complete operational integration and capital restructuring by Q3 FY27.

For context, Mitra is a D2C consumer brand that produces essential goods such as flour, pulses, rice and spices at affordable prices. It operates mainly in North India, claiming to have spread to 40K retail touchpoints and 500 distributors with operations across 38 cities.

On the other hand, Hyderabad-based Tierra Agrotech is a seed manufacturer that handles the entire lifecycle from growing to processing and ultimately selling the produce. Tierra Agrotech’s shares began trading on the Bombay Stock Exchange (BSE) in May 2022.

Important to highlight that Tierra’s total income for 9M FY26 stood at INR 67.7 Cr, up about 10% YoY, while its loss for the period halved YoY to INR 3.8 Cr. Mitra’s turnover for the H1 FY26 stood at INR 49.9 Cr, as per Tierra’s regulatory disclosures.

Founded in 2023, Mitra had previously raised $1.3 Mn (INR 11 Cr) in a pre-series A round in 2024 that was led by Bestvantage Investments.

Ultimately, through the merger with Mitra, the companies aim to expand their product portfolio spanning from seeds and agricultural inputs to finished food products like wheat flour and maida. This would allow the resultant company to tap into new customer segments, offer bundled solutions, and cross-sell products across various channels, thereby increasing customer reach and driving revenue growth.

Tierra Agrotech’s shares were trading up 1.16% at INR 48.98 as of 15:02 IST.