Agrigator, an agricultural supply chain platform, said it expects to register Rs.400 crore in gross merchandise value in FY23, a fivefold increase over the current fiscal year, capitalizing on the rising demand for agri-product supply chain and automation across operations.
The company offers full stack solutions in the agri supply chain, including a digital freight platform that connects grain shippers with independent truck carriers and online trading, as well as a marketplace that helps buyers and sellers trade while ensuring quality sourcing, access to on-demand logistics, and banks for financing to ensure a smooth transaction. The platform also offers price discovery to aid in logistics and trade negotiations, as well as automating activities such as inventory planning, forecasting, and re-ordering to assist companies avoid waste and minimize capital assets.
Changes in technology and capabilities, along with greater investment in the agri-tech space, according to Agrigator, will multiply productivity across processes in the Indian agriculture sector. "Our ultimate goal is to become a one-stop solution for all agri supply chain needs. We are developing a platform that will serve as a gateway for all supply chain stakeholders to investigate different connections. This also involves financing via fintech product that assists with ready finance for trade and in turn exponentially grows their company "Udit Sangwan, co-founder of Agrigator, agreed.
Two years ago, the firm began with local industries and mandis in and around Bhopal, Madhya Pradesh, and has since expanded into five new markets: Gujarat, Delhi, Haryana, Chhattisgarh, and Uttar Pradesh.
According to a 2021 report by Bain & Company, recent technological and regulatory changes could create around $30 billion to $35 billion of value pool in agri-logistics, off take, and agri-input delivery by 2025, despite the fact that the $370 billion Indian agriculture sector is one of the least digitized industries at the moment.
"We have been using technology to assist shippers in locating trucks and fleet owners in locating cargo, followed by a transparent transaction. We intend to advance our technology even further by introducing price engines that use machine learning. This will not only assist to standardize market pricing, but will also demonstrate to many players in the supply chain that prices are influenced by external factors such as diesel prices, distance, and commodity "Sangwan said.
Agrigator, founded in 2019 by Sangwan and Charu Chaturvedi, is a 100X.VC portfolio firm which raised an undisclosed sum in December 2020 from Venture Catalysts, Manish Modi, and industrialist Ness Wadia. It addresses the market disorganization in the agricultural supply chain by enabling trade and logistical services between buyers, sellers, and transportation providers in exchange for a modest commission on each transaction and a membership fee for premium service.
