Agritech startup Agrizy eyes $100 million in revenue by FY24
By Team Startupcity | Thursday, 16 March 2023, 09:28 IST
Agrizy, a tech-first platform to connect the processed agri supply chain, anticipates ending FY 23 with $35 million in revenue and aiming to reach $100 million in revenue in FY 24. In order to discover and complete transactions as efficiently as possible, the platform links agri suppliers, agri processors, and purchasers of agri products across food and non-food categories. In April of last year, it completed a $4 million seed round under the direction of Ankur Capital.
Delivering tailored agrifood products to customers, giving consistent demand to SME processors, resulting in higher revenue and profits, and strong tech and product adoption throughout the value chain have been the driving forces for growth in FY23. In order to boost revenue and put a stronger emphasis on developing export sales channels, the company plans to further solidify its position in these markets in FY 24.
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.
"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. 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.
"We have partnered with NBFCs and we're attempting to give these processors working capital support so that they can do more business," he continued. One of the barriers to their enterprises expanding is their working capital. The NBFCs are in a better position to conduct credit assessment calls thanks to our platform data about these processors, including how they behave on it, how many orders they submit, when their payments are due, and whether they are made on time or not. They can make better credit assessment calls using this data.
The agritech company intends to increase its geographic reach in two ways. First, the company is looking at other states, and second, it is hiring teams that are also concentrating on the export market. According to Dodani, Agrizy is currently focused on India, its neighbours, and some countries in the middle east.
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