Agrizy secures INR 82 crore investment in Series A funding round

New Delhi: Agrizy has received a commitment of $9.8 million (approximately INR 82 crores) in its Series A funding round from Accion, Omnivore, Capria Ventures, Thai Wah Ventures, and returning backer Ankur Capital.

This funding will drive Agrizy’s mission to revolutionize India’s agri-processing industry, addressing critical challenges in the sector.

India’s agri-processing market, valued at $400 billion and growing annually at 9%, currently processes only 10% of its agricultural produce. This figure is significantly lower than China’s 40% and the 70% typical in developed countries. Despite having over 2 million micro, small, and medium enterprises (MSMEs) in food processing, many struggle with operational inefficiencies and securing B2B customers, especially for export markets.

Co-founded in 2021 by Vicky Dodani and Saket Chirania, Agrizy aims to bridge this gap with its innovative B2B marketplace. This platform connects all stakeholders in the agrifood supply chain, streamlining transactions and enhancing operational efficiency. By collaborating with MSMEs, Agrizy provides digital solutions to improve long-term revenue streams and operational margins while simplifying procurement and sales processes.

The company plans to use the new funding to expand its product range and geographical footprint. Agrizy also intends to introduce contract development and manufacturing organization (CDMO) services, value-added advisory, and financial services tailored to MSME processors and farmer-producer organizations (FPOs).

CEO and Co-founder Vicky Dodani stated, “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. The current investment will empower Agrizy to actively drive these crucial initiatives in both local and global markets.”

Mark Kahn, Managing Partner at Omnivore, expressed, “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.”

John Fischer, Chief Investment Officer at Accion, remarked, “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. 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.”