Agritech startup Agrizy secures $9.8 Mn from Accion, Omnivore, Capria Ventures, and Thai Wah Ventures.
Fresh capital to fuel expansion, introduce new services, and support small-scale processors.
Company aims to streamline agri supply chains and boost India's food processing sector.
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Bengaluru-based B2B agritech startup Agrizy has raised $9.8 Mn (INR 82 Cr) in a Series A funding round co-led by Accion and Omnivore.
The round also saw participation from Capria Ventures, Thai Wah Ventures and existing investor Ankur Capital.
Agrizy plans to use the fresh funds to expand into new products and regions. It also plans to launch contract manufacturing and advisory services, and offer financial services to MSME processors and farmer-producer organisations (FPOs).
Founded in 2021 by Vicky Dodani and Saket Chirania, Agrizy aims to bridge the processed agri supply chain by connecting agri suppliers, processors and buyers of agricultural products across food and non-food categories.
The startup offers a digital marketplace for agri-products, custom sourcing of agri food products for buyers, demand aggregation for small processors and working capital support through partnerships with NBFCs. It also offers networking, logistics, warehousing services and automates payment cycles.
Dodani said, “Agrizy aims to make India a global food processing centre by helping FPOs and MSME agri-processors reach export markets and meet global quality standards. It will also provide these stakeholders working capital from formal financial institutions.”
In April 2022, Agrizy raised $4 Mn in a seed funding round led by Ankur Capital and a $5 Mn debt funding from SBI, Yes Bank, Vivriti Capital, and other financial institutions, last year.Krishnan Neelakantan, Managing Partner, Ankur Capital, said,
Krishnan Neelakantan, managing partner, Ankur Capital, said, “As an early investor, working closely with Agrizy, we have been impressed with the team’s ability to establish market fit and scale their business over the last two years. The company also demonstrates superior metrics on margins and capital efficiency. “
It is pertinent to note that the Indian agricultural sector accounts for nearly 16% of the country’s gross domestic product (GDP) and employs nearly 44% of the national workforce.
While the sector is still plagued by old-age practices and obsolete technology, homegrown agritech startups are trying to transform the Indian agriculture landscape, offering innovative digital solutions from providing weather-based crop advisory to soil analysis and from promoting IoT-enabled practices to AI-driven technology.
The fast-growing agriculture sector is expected to become a $24 Bn opportunity by 2025.
According to the Economic Survey 2022-23, there are more than 1,000 agritech startups in the country. Some of the notable startups in the space include AgroStar, Fasal, CropIn, Dehaat, Ergos, KisanKonnect, Ninjacart, Waycool, FarMart, and Gramophone.
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