Suumaya Industries has acquired 51 per cent stake in payAgri Innovations, a tech-driven agri and food business company solving the problems of key stakeholders such as farmers, processors and consumers in the Agri value chain for an undisclosed valuation.
Suumaya Industries is building a holistic agribusiness model to explore multiple avenues like B2B, B2C through its retail foray and corporate. payAgri’s ‘Seed 2 fork’ phygital business model, with a strong farm-gate supply chain expertise and holistic selling capabilities, thrives to create better livelihood for farmers and good value for consumers.
Ushik Gala, Chairman & Managing Director, Suumaya Industries said, “Suumaya Industries has embarked onto an ambitious journey with Suumaya 2.0 strategy. Diversifying into agribusiness is a new pathway for the company which is unfolding new opportunities and markets for us. The company has already made substantial inroads into the segment and we are certain that this highly scalable and sustainable business would be the next big growth engine for the company. Agribusiness has been instrumental in the robust financial performance of the company. Within few months, the company is positioned as one of the leading organised players in the Agri value chain. In line with this vision, the company is also exploring various inorganic opportunities to be recognised as a significant player driving the sector in unchartered frontiers.
“The capital infusion by Suumaya Industries will help drive the growth and expansion of payAgri as a farmer-centric value chain focused hybrid bulk and retail supply chain model. We are excited to partner with Rajkumar KVM and Rajeev Kaimal, both first-generation entrepreneurs, who have created a strong business through their market acumen and perseverance. There is a great synergy as it will give access to Suumaya in the southern markets, entry into higher value agri commodities as well as a wider range of customers and vast access to the farmers’ network which are the key strengths of payAgri, Gala added.
KVM Rajkumar, Co-Founder & MD (Bulk Value Chain Business), payAgri Innovations said, “We are building a unique and workable ‘seed 2 fork model’ with a focus on spices and grain value chains. We are excited to see the acceptance and appreciation from our B2B customers, especially food processing MSME customers for our quality and supply reliability. We plan to scale up our bulk value chain business by on-boarding 100+ MSME and overseas buyers and increase our wallet share to a minimum 50 per cent of their procurement requirements in the coming 12 months.”
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“We are delighted to have Suumaya Agro as our investor as they can leverage their huge business network to propel us to achieve fast-track growth, besides their equity investment and continuous working capital support. The investment will help us to invest in critical farm-gate and supply chain infrastructure, expand our FarmConnect Hubs within and outside India and also strengthen our tech platforms,” Rajkumar added.
Rajeev G Kaimal, Co-Founder & MD (Products & FinTech Business), payAgri Innovations said, “At payAgri, we aimed to build a sustainable inclusive model in the Agri value chain keeping farmers’ interest at the core. The solutions that we provide from market linkage, technology linkage to financial linkage not only helps farmers and farmer institutions but also the various actors in the value chain. With this investment support from Suumaya, we aimed to take this model across geographies in the coming months and establish ourselves as a prominent player in the Agri value chain space providing unique tailor-made market and financial solutions to the various value chains players.”
payAgri has built a healthy portfolio of the farmers and farmer institution intervention through its business model. The number of farmer producer organisations (FPOs) registered with payAgri are 70 whereas the number of farmer members covered is 70,000 and the number of farmers produce and products listed on the payAgri online market are 210. payAgri, an agri-fintech organisation digitises the entire transaction in an Agri value chain operates on three functions; removal of the middlemen in the Agri value chain through direct market linkages; creating a cashless ecosystem and providing benefits to smallholding farmers.