Produze, a UAE-based agricultural expertise start-up, raised $2.6 million in a seed funding spherical that it’s going to use to develop its operations and promote meals safety within the Center East.
The funding spherical was led by California-based personal fairness firm Accel, which is greatest identified for being among the many first buyers in social media platform Fb and music streaming service Spotify, with the participation of Indian-based enterprise capital firm All In Capital and different buyers, the corporate stated on Tuesday.
You are reading: UAE AgriTech start-up Produze raises $2.6m in funding spherical
Produze goals to make use of expertise to deal with the challenges of the agricultural provide chain by connecting farmers with worldwide retailers, eradicating obstacles to assist commerce flourish and supply aggressive costs to customers, stated co-founder and chief government Ben Mathew.
“Cross-border provide chain for agri-produce immediately is fragmented with a number of intermediaries and poorly managed processes, which creates inconsistency in high quality, inefficient costs and wastage — resulting in loss in worth for the retailers and distributors,” he stated.
The corporate at present affords pulses from India, based on its web site, and shall be serving a number of “agri-produce classes in a number of international locations” within the Center East, North America and Europe, the corporate stated.
The beginning-up plans to regularly add perishables and non-perishable classes, which would come with sub-categories akin to spices, vegetables and fruit from extra international locations, Mr Mathew informed The Nationwide.
“We’re constructing a world sourcing functionality that can assist retailers procure from wherever,” he stated.
The worldwide produce market is projected to succeed in greater than $211 billion by 2028 from about $144bn in 2020, increasing at a compound annual development fee (CAGR) of about 5.1 per cent, knowledge from Verified Market Analysis reveals.
It’s a part of the broader agriculture sector, which is predicted to succeed in about $12.5 trillion in 2022 and develop to greater than $18.8tn by 2026 at a CAGR of about 11 per cent, based on The Enterprise Analysis Firm.
Streamlining meals provide chains is essential to making sure meals safety, a rising precedence the world over, particularly after the Russia-Ukraine battle, which started in February, and provide chain disruptions.
The UAE is selling the usage of expertise to spice up the AgriTech sector, and has additionally pledged to take motion on the worldwide meals disaster.
The Center East is a “large strategic focus” for Produze, Mr Mathew stated, describing the UAE as a “dynamic and globalised market”, with residents searching for high quality meals merchandise at aggressive costs.
Produze will use expertise to hyperlink producers with retailers to make sure “constant high quality, higher costs and full just-in-time fulfilment”, Mr Mathew stated.
Pratik Agarwal, a principal at Accel, stated expertise and provide chain capabilities may assist to enhance the choice of recent farm produce for patrons “at extra reasonably priced costs whereas compensating the producers pretty”.
Produze was based in 2022 by Mr Mathew, Gaurav Agrawal, Rakesh Sasidharan and Emil Soman.
Mr Mathew and Mr Agrawal had been a part of the management workforce at Ninjacart, India’s largest AgriTech start-up.