DGV Raises $3.1 Mn To Extend Neobanking Facilities To Dairy Farmers

Dairy industry-focused neobanking startup Digivriddhi Technologies Private Limited (DGV) has raised $3.1 Mn in a Pre Series A round from Info Edge Ventures and Omnivore. 

Founded in 2019 by Ragavan Venkatesan, Bengaluru-based DGV currently works with Indian cooperative dairy unions and milk cooperative societies and farmers to provide them access to payments, liabilities and asset products, in partnership with Federal Bank. 

For example, partnering with Amul in Gujarat, DGV offers a micro ATM Payment Center facility for milk producers, allowing dairy farmers to withdraw money instantly using an Aadhar card-based system. 

“We are delighted to welcome Info Edge Ventures and Omnivore to lead our first institutional round. Info Edge Ventures’ experience in scaling digital marketplaces, and Omnivore’s deep experience in Agtech, will allow us to create an unmatched full-service platform for Dairy farmers,” said Ragavan Venkatesan, founder and CEO of DGV. 

Apart from the founder who was part of the Indian government’s direct benefits platform team, DGV’s senior management includes former members of the RuPay Card Scheme’s founding team, NPCI, and VISA Processing Services.

“Federal Bank’s partnership with DGV is another step towards expanding financial inclusion in the country. Under this arrangement, we are providing API Banking services across payments, liabilities, and relevant asset products to Dairy Farmers in Gujarat. DGV’s execution model is unique and aids the re-imagining of financial access to farmers. We intend to replicate this model in other parts of the country, and are confident that this collaboration with DGV, will revolutionise the Dairy Neo Banking space,” Shalini Warrier, executive director & business head- retail of Federal Bank, said. 

India has the largest bovine population in the world, with a population of close to 300 Mn producing almost 198.4 Mn tonnes of milk in 2019-2020. Despite pandemic restrictions, the organised sector is projected to grow at a 5-6% rate. The sector generated INR 1.5 lakh Cr in 2021-22, according to CRISIL.

In 2020, value-added products’ sales dropped due to pandemic restrictions, but the increase in demand and the increased penetration of food delivery services has led to a demand surge for the same in 2021-22.

India exported dairy products worth INR 1,358,29 Cr in the year 2020-21, with the United Arab Emirates being the largest export market by far. The popularity of Indian dairy products in the Middle Eastern country can be attributed to the large Indian diaspora. 

Last month, Bengaluru-based dairytech startup Stellapps had raised a total of $18 Mn in a Series C funding round led by Nutreco, an animal nutrition and aquaculture company. Before that, US-based Dairy tech company Dairy.com acquired a 100% stake in Gurugram-based Mr.Milkman — a dairy supply chain SaaS startup — in a bid to enter the massive Indian dairy market.