Feb 2023: Agrizy, a tech-first platform serving the US$400 billion processed agrifood supply chain, has partnered with Ankur Capital, British International Investment (BII), and Dutch Good Growth Fund (DGGF) to improve the processing capabilities and capacity utilisation of MSME food processors.
The processing of fruit and vegetables is a big area of opportunity in India, with only 2% of fruits and vegetables (F&V) getting processed into value-added agricultural products, compared to 30% in China and 60% in the U.S. According to the Indian Agricultural Research Institute (IARI), nearly 40% of F&V goes to waste. On the other hand, food processing units are underutilised, operating at only 50-60% of their annual capacity. Many sit idle for 5-6 months of the year.
Through its strategic partnership with Ankur Capital, Agrizy will further its efforts toward reducing the gap in processing that leads to high levels of wastage. The company is working with MSMEs in this space, seeing a big opportunity in optimising supplier discovery, supporting technical upgrades, and enabling the right market linkages – all of which can significantly improve productivity, plant utilisation and thus business outcomes; boosting operational utilisation of plants will also regularise workers’ employment and improve their earning potential.
Supported by its partners, Agrizy is also working on studies and pilot projects with food processing MSMEs to provide the technical know-how and market linkages for new processed agrifood products, which should boost productivity.
Krishnan Neelakantan, Managing Partner at Ankur Capital, said, “Improving profitability in the food processing industry is critical to the sustainability of food systems. Agrizy’s playbook can unlock global opportunities for India’s food and agriculture industries.”
Manav Bansal, Managing Director and Head of India at BII, commented: “The Agrizy platform is an example of how tech-enabled businesses can add value at all levels in supply chains. We are delighted to be supporting Agrizy which is helping to reduce food waste, improve food security, and potentially increase the profitability of MSMEs in this sector”.