• Agrizy is India’s fastest-growing B2B agri-processing platform, driving supply chain efficiency and SME profitability.
• The funding will go towards expanding services for existing and new product lines, developing value-added advisory services, and providing quality financial services to better serve processors and Farmer Producer Organizations (FPOs).

Bengaluru, August 05, 2024: Indian B2B agri-processing platform Agrizy today announced the close of a $9.8M (INR 82 cr) Series A equity round. The investment will enable Agrizy to scale up its business by aggregating excess capacity from hundreds of small-scale agri-processors for its growing customer base of brands in both India and international markets. On the one hand, Agrizy provides market access to processors, and on the other, it simplifies procurement for large brands by aggregating capacity and ensuring quality and timeliness through its technology and processes.

The round was co-led by Accion, a global nonprofit focused on financial inclusion, and Omnivore, an impact venture capital firm that pioneered agritech investing in India. Other investors include Global South specialist VC firm Capria Ventures and  Thai Wah Ventures, the strategic investment arm of one of APAC’s largest agri-food companies, Thai Wah Group. Agrizy’s existing investor, Ankur Capital, also participated in this funding round.

Agrizy will use the funds to expand its services into new product areas and geographies, develop advisory services, and offer financial services for processing businesses and farmer-producer organizations. The company will also invest to strengthen its B2B platform, transforming traditional agri-processing through an online-enabled marketplace and improving production support.

India’s $400 billion agri-processing market, though growing 9% annually, faces a bottleneck: only 10% of farm produce gets processed today. This pales in comparison to global leaders like China (40%) and developed nations (60-80%). At the root of this is the fragmented supply chain, with 1000’s of sub-scale processors without the technology, capital, and market access to be a reliable supplier to large brands.

More than 2 million MSMEs in food processing are operating significantly under capacity, and despite their proximity to agricultural regions, they struggle to connect with brands nationwide. This is where Agrizy steps in as a fully managed B2B marketplace in agrifood supply chain and processing.

Vicky Dodani, Co-founder and CEO at Agrizy, said, “India lags behind in food processing levels. Agrizy aims to transform the country into a leading global food processing hub by improving accountability throughout the value chain through technology integration. We will help FPOs and MSME processors comply with global quality standards while offering these underserved stakeholders working capital from formal financial institutions. The current investment will empower Agrizy to actively drive these crucial initiatives in both local and global markets.”

Surya Mantha, Managing Partner, Capria Ventures, said, “Agrizy is uniquely positioned to capitalize on the $400 billion opportunity of the underserved agri-food processing market. With their deep understanding of supply chain dynamics and operational efficiency, the Agrizy team has demonstrated impressive revenue growth and expanded margins in a short time. We are confident that their technology-enabled solution, enhanced by IoT-based sensors and Generative AI, will make Agrizy a trusted partner for both domestic companies and importers across the globe.”

John Fischer, Chief Investment Officer at Accion, said, “Agrizy is seeking to reshape traditional agri-processing by providing a robust marketplace and support to improve production. The company aims to also address lack of quality financing for small processors and the Farmer Producer Organizations that supply them, helping to increase incomes in rural communities. Through our partnership with Agrizy, we will leverage Accion’s global expertise to help the company grow, connecting many processors and smallholder farmers to responsible financial services and formal markets for the first time.”

Mark Kahn, Managing Partner at Omnivore, stated, “We are proud of our partnership with Agrizy and their vision of upgrading the Indian agri-processing sector. The company’s foray into contract manufacturing is critical for streamlining intricate, export-oriented supply chains. By prioritizing innovation and sustainability, Agrizy is positioning India’s food processing industry to meet evolving global market needs.”

Since its inception in 2021, Agrizy has served over 100 institutional clients across domestic and international markets, including Europe, North America, and Asia. The platform has processed more than 100,000 MT of agrifood products, revolutionizing the industry for both processors and brands.

You can read more about why we invested in Agrizy here.