Bengaluru-based agritech startup Agrizy has successfully raised $9.8 million (approximately Rs 82 crore) in a recent funding round, co-led by Accion and Omnivore.
The round also saw contributions from Capria Ventures, Thai Wah Ventures, and existing investor Ankur Capital. While Agrizy has not disclosed its current valuation, the fresh capital will significantly bolster its expansion plans.
Agrizy plans to utilize the newly raised funds to diversify into new product areas and expand its market presence. The company also intends to launch contract development and manufacturing organization (CDMO) services, along with value-added advisory offerings. Additionally, Agrizy will extend financial services to micro, small, and medium enterprise (MSME) processors and farmer-producer organizations (FPOs). This latest funding round follows the $4 million Agrizy raised in April 2022, led by Ankur Capital.
Founded in 2021 by Vicky Dodani and Saket Chirania, Agrizy is on a mission to revolutionize the agricultural processing landscape in India. The platform facilitates seamless transactions between agricultural suppliers, processors, and buyers across both food and non-food categories. Agrizy aims to position India as a global leader in food processing by helping FPOs and MSME agri-processors access international markets and adhere to global quality standards. The platform also supports these often underserved stakeholders by providing working capital from formal financial institutions.
Agrizy’s innovative approach has already attracted over 100 institutional clients, both in India and internationally, with markets spanning Europe, North America, and Asia. The startup’s digital services are designed to enhance long-term revenue, improve operating margins, and streamline procurement and sales cycles for agri-food processing MSMEs.
John Fischer, Chief Investment Officer at Accion, highlighted Agrizy’s efforts to modernize traditional agri-processing by offering a comprehensive marketplace and essential support to boost production efficiency. He also emphasized the company’s role in addressing the financing gap for small processors and FPOs, which could significantly uplift rural incomes.
Mark Kahn, Managing Partner at Omnivore, underscored the importance of Agrizy’s venture into contract manufacturing, noting that it plays a crucial role in optimizing complex, export-oriented supply chains.
Agrizy’s latest funding round marks a significant milestone in its journey to transform India’s agricultural processing industry. With a strong focus on expanding its service offerings and market reach, the startup is well-positioned to drive growth and innovation in the agritech sector. As Agrizy continues to scale, it is poised to make a lasting impact on India’s agri-processing ecosystem, enabling MSMEs and FPOs to thrive in a global market.
