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Produze, a UAE-based agritech startup, has raised $2.6 million in seed funding to expand its business and outreach food safety in the Middle East.
The round was led by Accel, a California-based private equity firm known for being the first investor in social media platforms Facebook It also has participation from music streaming service Spotify, Indian venture capital firm All In Capital and other investors, the company said on Tuesday.
Produze aims to address the challenges of agricultural supply chains by connecting farmers with international retailers, removing barriers to help trade flourish and providing consumers with competitive prices, said Ben Mathew, co-founder and CEO of Produze. .
“Today, cross-border supply chains for agricultural products are fragmented, with multiple middlemen and poorly managed processes, which create inconsistent quality, price inefficiencies and waste – leading to lost value for retailers and distributors,” he said.
According to its website, the company currently offers pulses from India and will serve multiple “agricultural categories” in the Middle East, North America and Europe.
The start-up plans to gradually increase the perishable and non-perishable categories, including sub-categories such as spices, fruits and vegetables from more countries, Mr Mathew told National.
“We’re building a global sourcing capability that will help retailers source from anywhere,” he said.
According to Verified Market Research, the global agricultural market is expected to grow from about $144 billion in 2020 to more than $211 billion by 2028, a compound annual growth rate (CAGR) of about 5.1%.
It is part of a broader agricultural sector that is expected to reach about $12.5 trillion by 2022 and grow to more than $18.8 trillion by 2026, a compound annual growth rate of about 11 percent, according to Business Research.
Simplifying the food supply chain is critical to ensuring food safety, a growing global priority, especially after the Russia-Ukraine conflict and supply chain disruptions that began in February.
UAE is promoting the use of technology to advance the agtech industry and is also Commitment to Action on Global Food Crisis.
The Middle East is a “major strategic focus” for Produze, said Mr Mathew, who described the UAE as a “dynamic global market” where residents seek quality food at competitive prices.
Produze will use technology to connect producers with retailers to ensure “consistent quality, better prices and fully timely fulfillment,” Mr Mathew said.
Pratik Agarwal, head of Accel, said technology and supply chain capabilities could help “improve fresh produce choices for customers at more affordable prices while compensating producers fairly”.
Produze was founded in 2022 by Mr Mathew, Gaurav Agrawal, Rakesh Sasidharan and Emil Soman.
Mr. Mathew and Mr. Agrawal are part of the leadership team of Ninjacart, India’s largest agtech start-up.
Updated: August 9, 2022 at 11:20 am
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