Dairy fintech startup Digivriddhi Technologies (DGV) has raised a Series A funding of Rs 50 crore ($6 million) led by Omidyar Network India, with participation from existing investors Omnivore and InfoEdge Ventures.
Enhancing tech capabilities
According to the startup, the raised capital will be instrumental in expanding reach and enhancing technological capabilities. DGV's aim is to simplify and digitize the payment chain in the dairy sector, providing financial services to farmers and micro-enterprises.
What does DGV do?
Founded in 2019 by Ragavan Venkatesan, DGV provides dairy farmers and microenterprises access to institutional credit while easing and digitizing payments across the dairy value chain.
Ragavan Venkatesan, founder and CEO, DGV, said, "The dairy sector provides a key avenue to multiply the disposable income of Indian farmers. With DGV PAY, we simplified the payment value chain for dairy farmers and micro-enterprises, helping with their basic banking needs."
"Integrating ERP systems across the dairy value chain, we've built a unique underwriting mechanism that facilitates digital working capital and bovine loans through DGV MONEY. The livestock management industry presents a $70-80 billion opportunity with significant gaps in bovine discovery, pricing and productivity. DGV CONNECT addresses these gaps with embedded financing options and is progressively becoming a one-stop platform meeting all the needs of the Indian dairy farmer," Ragavan added.
Providing financial access to millions of farmers
The startup claims to have established a strong presence in Gujarat, working with 75% of the region's dairy processors, including Amul, to provide financial access to over 3.6 million dairy farmers. It is now extending its services to several other Indian states.
DGV has partnered with leading banks, dairy processors, and government entities. Notably, The startup has collaborated with RBIH (Reserve Bank of India Innovation Hub) to create a digital infrastructure for bovine loans, offering a seamless loan experience for rural farmers.
What does Omidyar Network India say about DGV?
Treasa Mathew, firector, Omidyar Network India, said "India's 80 million dairy farmers represent a large segment of the #NextHalfBillion that is underserved by financial institutions due to the lack of reliable data to estimate their incomes. DGV's integrated fintech and marketplace model, which is embedded within the dairy supply chain, promises to unlock access to convenient, affordable financial products and improve livelihoods for India's dairy farmers."
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