Agritech Startup Agrizy Secures Debt Financing in Order to Reach More Indian SMEs
The cash will assist Agrizy in carrying out its goals to empower India’s agro-based food processing business. The startup’s goal is to ensure a long-term future for all parties participating in the process.
SBI, Yes Bank, Vivriti Capital, and other financial institutions have provided $5 million in debt investment to agritech company Agrizy. The new funds will be used by Agrizy to develop its technology and processing skills, as well as to reach out to additional agrifood processing SMEs in India and major agrifood customers in foreign markets.
According to Agrizy, the money is a key step towards its aim of developing a seamless supply chain for agricultural food processors and would aid in the execution of its ambitions to strengthen India’s agro-based food processing business. It also intends to create a long-term future for all parties participating in the process.
Vicky Dodani and Saket Chirania founded the firm in 2021 with the goal of driving growth in India’s agrifood processing sector. The Bengaluru-based agrofood processing firm plans to use cutting-edge technology to service the $400 billion Indian agricultural food sector. It aspires to create a sustainable future by combining agriculture with technology and constructing a resilient food system, according to Agrizy.
The business aims to solve worldwide gaps in the agriculture supply chain. It links dispersed suppliers and food processing plants to improve food supply chain management.
To accomplish all of this, Agrizy provides tailored solutions to meet the demands of the agrofood value chain. The startup’s B2B platform enables food processing plants to acquire food goods and assures end-to-end fulfilment services via quality assurance, logistics, and payment options.
Agrizy provides custom-processed agrofood products to big agrifood processors and brands, enhancing capacity utilisation and profitability for SME processors.
Last year, Ankur Capital led a $4 million seed round, including participation from Omnivore and angel investors Rajesh Yabaji (CEO, BlackBuck), Zetwerk cofounders Srinath Ramakkrushnan, Amrit Acharya, Rahul Sharma, and Vishal Chaudhary, among others.
Sustainability is a developing trend in the food sector, as demand rises for agro-based food items farmed and processed in environmentally responsible ways. Recently, actor Akshay Kumar and former Indian cricketer Virender Shehwag, among others, invested in Two Brothers Organic Farm in Pune.
INI Farms, another sustainable agro-based food company, has received $1.95 million from ESG First Fund to achieve multifold development and expand throughout the full farm output sector.
Use of tech in the food industry has seen upward trends for better management of the supply chain ensuring less wastage. Inc42 found that there is going to be an increased focus on creating a robust and agile infrastructure to ensure the food safety standards are effectively maintained as we anticipate food production to double by 2050.
According to a study by MarketsAndMarkets, the use of AI in the agriculture market is anticipated to reach $4 Bn by 2028.