Agrizy Bags $5 Mn Funding To Help Agri Food Processors Streamline Supply Chain

Agritech startup Agrizy has secured $5 Mn debt funding from SBI, Yes Bank, Vivriti Capital, and some other financial institutions. Agrizy will use the fresh funds to strengthen its technological & processing capabilities, expand reach to more agrifood processing SMEs in India, and large agrifood buyers in international markets.

Agrizy stated that the funding is a significant step towards its mission of creating a seamless supply chain for the agricultural food processors and will be helpful in executing its plans to empower the agro-based food processing market of India. It further plans creating a sustainable future for all stakeholders involved in the process.

Founded in 2021 by Vicky Dodani and Saket Chirania, the startup aims to drive growth in the agrifood processing market in India. The Bengaluru-based agrofood processing startup looks forward to using cutting edge technology to serve the Indian agricultural food market worth $400 Bn. According to Agrizy, it aims at creating a sustainable future by integrating agriculture with technology and building a resilient food system. 

The startup tries to fill the gaps in the agricultural supply chain, globally. It connects fragmented suppliers and food processing units for better management of the food supply chain.

To conduct all these, Agrizy offers customised solutions for addressing the needs of the agrofood value chain. The B2B platform of the startup allows the food processing units to procure food products and ensures end-to-end fulfilment services through quality assurance, logistics, and payment offerings.

Agrizy caters to large agrifood processors and brands with custom-processed agrofood products, increasing capacity utilisation and profitability for SME processors. 

Last year, the startup raised $4 Mn in seed funding led by Ankur Capital, with participation from Omnivore and angel investors Rajesh Yabaji (CEO, BlackBuck), Zetwerk’s cofounders Srinath Ramakkrushnan, Amrit Acharya, Rahul Sharma, and Vishal Chaudhary among others.

Sustainability is a growing trend in the food industry as demand increases for agro-based food products that are grown and processed in an eco-friendly manner.  Recently, actor Akshay Kumar and former Indian cricketer Virender Shehwag have invested in Two Brothers Organic Farm based in Pune, along with others.

Yet another sustainable agro-based food startup INI Farms has bagged $1.95 Mn from ESG First Fund to achieve multifold growth, expand through the entire agriculture output business.

Use of tech in the food industry has seen upward trends for better management of the supply chain ensuring less wastage. Inc42 found that there is going to be an increased focus on creating a robust and agile infrastructure to ensure the food safety standards are effectively maintained as we anticipate food production to double by 2050.

According to a study by MarketsAndMarkets, the use of AI in the agriculture market is anticipated to reach $4 Bn by 2028.