Which started as a mission to introduce health benefits of mushroom, is now earning a revenue of Rs 1 crore annually. Kerala-based startup, Grow the Funguy was founded in 2022 by the couple Adam and Raeesa. Having a close experience with a major heart attack and its after effects faced by Adam’s father, he decided to quit his high-paying job and find something that can be induced in diet to make them healthy.
| Startup Name | Grow the Funguy |
| Founders | Adam Shamsudeen and Raeesa Manaal |
| Industry | Agri-tech |
| Company Classification | Adam Mushrooms Pvt Ltd |
| Headquarters/based-in | Thrissur, Kerala, India |
| Idea | To provide best-quality mushrooms and mushroom growing kit and encourage people to eat and stay healthy. |
| Revenue | 2022 Rs 2-3 lakh
In FY23-24 Rs 1 crore |
| Date of Commencement | 2022 |
| Investments | Bootstrapped with Rs 10 lakh
Rs 3 lakh from funding and grant |
| Number of Customers | 3000+ and hundreds of farmers |
The Problem: Why Does This Matter?
In a fast-moving world, we are engulfed in winning the race and give little to no importance to our health. We sure are eating but mostly fast food, junk food, ready-to-eat dishes or, in general, we eat outside.
We are not paying attention to hygiene, the calories and nutritional content of the food that we eat. This is leading to numerous health-related problems and the most common is high blood pressure, uncontrolled cholesterol, which leads to heart problems.
Adam Shamsudeen’s family faced a similar health emergency situation when his father had a major heart attack. Adam was in the 11th standard at that time. To pursue the treatment the family moved from Saudi Arabia to Kerala, India.
After the attack, his father couldn’t work, and things took a hard turn.
Millions of people have heart attacks in a year, and if the person is the bread earner of the family, it leads to a difficult life dealing with treatments and financial problems.
The Solution: Grow the Funguy
While Adam was researching ways to live a healthy life, he found the notable benefits of mushrooms. Together with his wife Raeesa Manaal, an artist, he decided to start his entrepreneurship journey of founding a healthy brand with mushrooms.
Thus, in 2022, with Rs 10 lakh, the couple bootstrapped Grow the Funguy from their room. The startup provides high-quality materials to grow mushrooms at home. They also guide people in starting their mushroom farm as a livelihood.
Due to its unique product range and innovative approach, the brand received various funding and grants, including support from the Kerala Startup Mission and other governmental programs. Gradually, they succeeded in securing Rs 3 lakh in total from the Kerala government.
Mushpellets were Adam’s innovation. These are pelletized medium and organic mushrooms which simplified the mushroom growing process for farmers. Simply, they have to pour hot water, put the seeds in, and wait. No more effort is needed. Numerous farmers are consistently purchasing Mushpellets for their farm.
Grow the Funguy has a wide product range including mushroom-based supplements, DIY kits (for aspiring mushroom farmers), and exotic mushroom varieties (reishi and lion’s mane); everything is organic.
Business Model: How Do They Make Money?
- During the 1st year, 2022, their revenue was Rs 2-3 lakh.
- In FY23-24, their revenue has crossed the Rs 1 crore mark.
All this became possible with their loyal customer base of more than 3,000.
Their 1st product was a user-friendly mushroom growing kit at Rs 699. It turned out to be a game-changer for them as with it anyone can grow fresh organic mushrooms with minimal effort.
This easy-to-use approach of their products made the brand famous among the customers. Mushpellets became an instant hit and boosted the company’s revenue. Moreover, it also earned a trademark for the startup and established them as mushroom pioneers in the Indian market.
With a team of 7 to 8 full-time employees, the startup is shipping orders across India (with major customer bases in Kerala, Delhi, Hyderabad, and Bangalore). Moreover, during the rainy season (peak time for mushroom cultivation), there is a surge in demand and their daily shipment exceeds 1,000 kg.
Challenges/Struggles: What Roadblocks Are They Facing?
In the beginning, the couple had to play numerous roles: product creators, packagers, customer service representatives, and shippers. The money went in setting up a mushroom lab in their room and marketing the products.
Deciding to leave the comfort zone of earning Rs 5 lakh/month to start from zero was a difficult decision. His wife, who is an artist and managed her home venture of handmade decorative products, joined hands with him as the creative and marketing head of the team.
A Glimpse into Founder’s Life
After graduating in BTech in computer science, Adam started working at TCS, then he joined Saama Technologies and worked in the pharma domain for 4 years. While working on how to make medicine during 4 years at Saama, he realized prevention is better than cure. And that it is possible through a healthy active lifestyle.
Future Vision: What’s Next?
Grow the Funguy is also working on a concept of Grow Room, through which they can grow mushrooms in containers controlled by smartphones with the help of AI. Furthermore, the founders aim to achieve Rs 3 crore revenue in FY24-25.
Key Takeaways: Why Should Users Care?
From Adam and Raeesa, we learn:
- Prevention is better than cure.
- We should learn to value health before it is too late.
- Offer a solution which is beneficial for others; it can be health-wise also.
- There is always a market for health-related products.
- Do not feed on anyone’s problems; rather learn from your and others’ experiences to develop better solutions.
