The platform connects the agri suppliers, agri processors and buyers of agri products across food and non-food categories to optimally discover and fulfil transactions. It raised $4 million in its seed round led by Ankur Capital in April last year.
The driving factors for growth in FY23 has been been delivering customized agrifood products to the buyers, providing regular demand to the SME processors leading to increased revenue and profits and strong tech and product adoption throughout the value chain.
In FY 24, the company aims to further strengthen its position in these areas to increase its revenue and increase focus on building export sales channels.
India’s addressable agritech market is estimated to hit $24.1 billion by 2025. But even now, the sector is plagued by pricing inefficiencies and a broken supply chain due to the lack of credit flow, resulting in low productivity and steadily falling revenues.
To drive transactions at scale and sustainable pricing, Bengaluru-headquartered Agrizy was set up in 2021 as an agricultural e-marketplace to help wholesalers procure non-perishable farm products and cash crops like cereal, pulses, oilseed and jute directly from producers.
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“The platform provides networking, logistics and warehousing services besides automating payment cycles (for sellers) to facilitate trade. It further helps buyers and sellers with working capital, gets a commission on every transaction and earns interest on the capital. Agrizy started its operations in West Bengal, Assam, Tripura and other eastern states and currently services northern and central India,” said Vicky Dodani, founder of Agrizy. The firm, which started its operation in 2021 claims to have onboarded 100 plus B2B clients till date.Dodani said that Agrizy Is a B2B platform where they connect multiple suppliers and agri processors. “One can procure the raw material from the platform in a transparent manner,” he said. T
In India, the overall capacity utilization of all the agri food units combined ranges between 60 – 70%. “At least, 30-35% of the processing capacities are underutilised. So, when we work with these SME processors, we are actually improving their capacity utilization because we are giving the orders which we are sourcing from very large buyers,” he said.
He added,”We have tied up with NBFCs and we’re trying to give working capital support to these processors so that they can do more business. The working capital is one of the constraints to grow their businesses. Our platform data about these processors of how they behave on our platform, how many orders they are giving, when their payments are due, the payments are on time or not, the NBFCs are in a better position to undertake credit assessment calls.”Using this data, they are able to take better credit assessment calls.”
The agritech firm is planning to expand its geography in two ways. Firstly, by looking at more states and secondly, the firm is hiring teams which are focusing on the export market as well. Dodani said that at this point of time, the focus of Agrizy is India and its neighbouring countries and some of the middle east countries.