Agritech startup Agrizy raises $9.8 million in funding led by Accion, Omnivore

Agrizy, an agritech startup, secured $9.8 million in funding from Accion and Omnivore, along with other investors. The capital will be invested in expanding products, launching new services, and providing financial aid to MSMEs and farmer groups. Founded in 2021, Agrizy connects agricultural suppliers, processors, and buyers to facilitate transactions and aims for global food processing prominence.

Agritech startup Agrizy raised $9.8 million (about Rs 82 crore) in a funding round co-led by Accion and Omnivore.The round also saw participation from Capria Ventures, Thai Wah Ventures, and existing investor Ankur Capital, Agrizy said in a statement on Monday. The company didn’t disclose its valuation in the latest round.The funds will be used for expanding into new product areas and markets, launching contract development and manufacturing organisation (CDMO) and value-added advisory services, and providing financial services to MSME processors and farmer-producer organisations (FPOs).

Agrizy last raised $4 million in April 2022 in a funding round led by Ankur Capital.

Founded in 2021 by Vicky Dodani and Saket Chirania, the Bengaluru-based platform connects agricultural suppliers and processors as well as buyers of farm products across food and non-food categories to optimally discover and fulfil transactions.

“Agrizy aims to transform India into a global food processing hub by helping FPOs and MSME agri-processors access export markets and comply with global quality standards, while offering these underserved stakeholders working capital from formal financial institutions,” said cofounder and chief executive Dodani.

The startup works with agrifood processing MSMEs, providing a range of digital services to boost long-term revenue and enhance operating margins, while streamlining procurement and sales cycles.

Agrizy claims to serve more than 100 institutional clients in India and overseas spanning Europe, North America, and Asia.

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 the lack of quality financing for small processors and the Farmer Producer Organizations that supply them, helping to increase incomes in rural communities.”

“The company's foray into contract manufacturing is critical for streamlining intricate, export-oriented supply chains,” said Mark Kahn, managing partner at Omnivore.