Imagine being a major enterprise in India, such as an FMCG giant like ITC or Adani Wilmar, constantly grappling with the challenge of sourcing reliable custom-processed ingredients for their branded food products. Brands face the dual struggle of price discovery and quality assurance. Additionally, procuring high-quality inputs while ensuring timely fulfillment can be challenging. Meanwhile, over 42,000 MSME food processors, often operating at less than 70% capacity, struggle to connect with brands spread across the nation.

This is where Agrizy steps in.  As a fully managed B2B marketplace in agrifood trading and processing,  Agrizy offers end-to-end fulfillment for brands with robust quality assurance, logistics, and payment solutions. By aggregating from a large number of suppliers and emphasizing high-quality products , Agrizy is a more attractive supplier than traditional traders and middlemen, who are not able to reliably supply the quantities brands need, often compromising on quality in the process. Utilizing IoT devices to monitor temperature, moisture, and humidity at processor factories,  Agrizy ensures remote oversight and maintains high standards. Additionally, their technology provides complete traceability of processed products, a crucial feature for importers.

Agrizy is transforming the agri-processing landscape by helping small processors optimize their idle capacity, improving utilization by 10-50%. Seeing these benefits, processors are more willing to upgrade to global standards. Agrizy provides access to consultants for achieving quality certifications like Halal, Kosher, BRC, and FSSC, leading to increased demand and a more diverse customer base.

Agrizy also enables higher realizations for farmers with lower or no commissions. A notable example is the procurement of red chillies from FPOs in remote villages of Andhra Pradesh, Telangana, and Karnataka. Farmers benefited from up to 10% better price realizations, with no commission deductions compared to dealing with traders. Additionally, farmers received assured payments at the loading point, in contrast to the average 10-day credit period when working with traders.

Agrizy solves one of the more critical problems faced by the agri sector in India i.e. wastage. Processed fruits & vegetables (F&V) is one of Agrizy’s key focus areas. Currently, only 3% of the country’s F&V output is processed, leading to a wastage rate of 35-40% of produce. Agrizy already processes 8,000 MT of F&V annually, contributing to the reduction of wastage.

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. Agrizy’s tech-driven approach, incorporating IoT-based sensors and Generative AI, streamlines the procurement process, making it more efficient and reliable.

Why We Invested in Agrizy

• Very Large Underserved Market: India’s agri-food processing market is approximately $400 billion and growing at 9% annually. However, only about 10% of agricultural produce is processed, one of the lowest rates globally, compared to 40% in China and 60-80% in developed nations. This gap underscores significant growth potential. According to NABARD, only 25% of processed food comes from the organized sector, with the rest from small-scale players. This creates a substantial opportunity for a B2B aggregator like Agrizy.
• Large Export Potential: India exports about $28 billion worth of food crops annually. Agrizy focuses on processed food exports, which offer longer shelf life and cost-effective transportation. Their tech ensures traceability and quality control, making Agrizy a trusted partner for global importers.
• Supportive Government Policies: The Indian government is all in on supporting the agri-processing sector, with tailwinds including policies permitting 100% FDI in agro-processing and mega food parks, and subsidies for food processing plants. Initiatives like the production-linked incentive scheme and Agristack – a digital repository that simplifies farmers’ access to credit, quality inputs, advice, and markets, further boost the sector.
• Strong Founding Team: Agrizy’s founders bring a wealth of experience from their time at Blackbuck, a leading logistics company. Their deep understanding of supply chain dynamics and operational efficiency has been instrumental in Agrizy’s early success. Their financial discipline and strategic foresight have enabled Agrizy to expand margins in a capital-efficient manner and attract top talent in the agri-value chain.
• Innovative Use of Technology: Agrizy leverages cutting-edge IoT-based sensors and Generative AI to develop a comprehensive toolset for the agri-processing industry. This innovative use of technology enhances operational efficiency and reliability, setting Agrizy apart in the market.

Agrizy is revolutionizing agri-food processing by connecting small agri-processors with large brands, ensuring quality, traceability, and efficiency.  Addressing issues of wastage and market discovery, and backed by favorable government policies and a strong founding team, Agrizy is poised to tap into a fast growing $400 billion market. We’re excited to support Agrizy in transforming India’s agri-food sector!

You can read the press release here.