Accel invests $2.6 Mn in Produze to help farmers with global exports

Accel invests $2.6 Mn in Produze to help farmers with global exports

Accel has reportedly completed a $2.6 million investment in Produze, an Indian company focused on helping local agri producers, for expanding footprint into international buyers.

The investment marks the latest series of bets amidst ongoing efforts of investors and entrepreneurs to enhance efficiency and empower one of the largest agri producers in the world.

Conventionally, farmers deliver their output to a farmer aggregator, who then distributes it to a trader, who ultimately sends the products to an exporter.

Followed by this, the produce goes through a distributor and an importer before reaching the store. After that, the output is sent to the target nations.

It is thus imperative to note that, an unending supply chain adds to the difficulty of exporting agricultural products as established retailers frequently procure fruits that fall short of their standards for quality. 

Meanwhile, the intermediaries additionally charge a margin of up to 5% to cover the risk of payment default, quality issues, inventory losses, and pricing changes.

According to Ben Mathew, a former Ninjacart employee, pricing inefficiencies of nearly 25 to 30 percent are weighing down the agri-producers with lower margins that are offered by retailers.

Mathews added that the latest funding is intended to facilitate reliable and secure access to the international market for agri producers, allowing them to reap more margins for their produce.

Apparently, the firm has already established an office in Dubai with further plans for offices in Europe and the U.S. over the next two months.

The seed funding for the startup, included participation from Kartheeswaran KK, All in Capital and Ninjacart chief operating officer and founder, as well as Thirukumaran Nagarajan, Ninjacart’s chief executive officer. The officials recently began accepting applications for retailers and agri producers, while claiming to be overwhelmed by the volume of responses.

According to a statement from Pratik Agarwal, a Principal at Accel, Produze technology and supply chain skills may assist in expanding the variety of fresh farm products for customers at more affordable costs while paying the producers properly.

Source Credit: https://techcrunch.com/2022/08/08/produze-seed-funding-2-6-million-usd-accel-agri-supply-chain-india/