Agrizy, an innovative agritech startup, has successfully raised $9.8 million in a funding round co-led by Accion and Omnivore. This substantial financial boost also saw participation from Capria Ventures, Thai Wah Ventures, and existing investor Ankur Capital. The announcement, made on August 5, 2024, marks a significant milestone for the Bengaluru-based company, which aims to revolutionize the agricultural processing industry.
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Founded in 2021 by Vicky Dodani and Saket Chirania, Agrizy provides a digital platform that connects agricultural suppliers, processors, and buyers. The platform facilitates transactions across both food and non-food categories, optimizing the discovery and fulfillment processes. Agrizy’s mission is to transform India into a global hub for food processing by enabling Farmer Producer Organizations (FPOs) and Micro, Small, and Medium Enterprises (MSMEs) in the agri-processing sector to access export markets and adhere to global quality standards.
The newly acquired funds will be strategically utilized to expand Agrizy’s product offerings and market reach. The company plans to launch a Contract Development and Manufacturing Organization (CDMO) and value-added advisory services. Additionally, Agrizy aims to provide financial services to MSME processors and FPOs, addressing the critical need for quality financing in the sector.
Agrizy is committed to reshaping traditional agri-processing by offering a robust marketplace and comprehensive support to enhance production. Their goal is to address the financing challenges faced by small processors and FPOs, thereby increasing incomes in rural communities. This was stated by John Fischer, Chief Investment Officer at Accion.
Mark Kahn, Managing Partner at Omnivore, emphasized the importance of Agrizy’s foray into contract manufacturing. This move is crucial for streamlining intricate, export-oriented supply chains. Agrizy’s innovative approach will significantly improve the efficiency and profitability of agri-processing MSMEs was noted by him.
Since its inception, Agrizy has made notable strides in the agritech sector. The company previously raised $4 million in a funding round led by Ankur Capital in April 2022. Agrizy currently serves over 100 institutional clients in India and overseas, spanning Europe, North America, and Asia. The startup’s digital services are designed to boost long-term revenue and enhance operating margins for agrifood processing MSMEs, while also streamlining procurement and sales cycles.
Co-founder and Chief Executive Vicky Dodani expressed his vision for the company’s future by stating that Agrizy aims to become a global leader in food processing by empowering FPOs and MSME agri-processors. Their platform will facilitate access to export markets and ensure compliance with international quality standards, ultimately contributing to the growth and development of rural economies.
Agrizy’s latest funding round underscores the growing investor confidence in the potential of agritech solutions to address critical challenges in the agricultural sector. With its innovative platform and strategic expansion plans, Agrizy is well-positioned to drive significant advancements in agri-processing and contribute to the broader goal of transforming India’s agricultural landscape.
