Mumbai-based Suumaya Industries has acquired a 51% stake in agritech startup payAgri Innovations for an undisclosed valuation.
Suumaya Industries, which is into textile business, has recently ventured into agri-commodity business through its 100 per cent subsidiary Suumaya Agro Ltd.
The company had posted a net profit of Rs 406 crore and a revenue of Rs 4,263 crore during the last fiscal.
The company is building a holistic agri business model to explore multiple avenues like B2B, B2C through its Retail foray, Corporate, etc, the press note read.
Ushik Gala, Chairman and Managing Director of Suumaya Industries, said the company has embarked on an ambitious journey with Suumaya 2.0 strategy.
"Diversifying into the agri business 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 most certain that this highly scalable and sustainable business would be the next big growth engine for the company," he said.
With the acquisition, Suumaya Agro would gain a strong foothold in the agri value chain business in India.
"The capital infusion by Suumaya Industries will help drive the growth and expansion of payAgri as a farmer centric value chain focused hybrid bulk & retail supply chain model," Gala said.
The acquisition will help the company in getting access to the Southern markets, entry into higher value agri commodities as well as wider range of customers and a vast access to the farmers network.
"The investment in payAgri not only underlines our commitment to exponentially grow the agri business but also see huge potential in the new commerce agri-fintech which will further boost the digital ecosystem for millions of farmers, consumers and agro and food MSMEs," Gala said.
KVM Rajkumar and Rajeev G Kaimal founded payAgri in 2017 and it is a tech-driven agri and food business company. It is a farm-gate level operator with investments in primary processing infrastructure for the focused value chains such as spices and coconut.
payAgri has built strong expertise in chilly, turmeric, cardamom, coriander, coconut, paddy, maize, millets and wheat value chain. It caters to both B2B segment with commodities and B2C segment with value added products.
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