Dairy-focused neobank DGV gets $3.1 million in first institutional funding

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Digivriddhi Technologies (DGV), a dairy-focused neobanking startup, has raised $3.1 million from Info Edge Ventures and Omnivore as its first institutional funding.

The capital will be used to expand the company’s network from 80 locations at present to 500 by the end of the current fiscal, according to a statement released on Tuesday.

“The funds will be utilised to further add neobanking product lines specific to the needs of dairy farmers — like cattle loans, etc. We shall be deploying a large part of the funds raised in hiring sales, product and engineering talent,” said Ragavan Venkatesan, founder and chief executive of Digivriddhi Technologies. “We are growing at 20% month-on-month and expect to multiply our transaction run rate per month by 8X in the next 4-5 months.”

Founded in 2019 by Venkatesan, DGV focusses on dairy farmers, providing them access to formal banking and financial services. It is currently working with some of India’s leading cooperatives, and their respective milk cooperative societies and farmers, by providing them access to payments, liabilities, and asset products through its partnership with Federal Bank.

“Info Edge Ventures’ experience in scaling digital marketplaces, and Omnivore’s deep experience in agritech, will allow us to create an unmatched full-service platform for Dairy farmers,” Venkatesan said.

“We are excited to partner with Ragavan in his mission to provide class-leading financial services to 100 million stakeholders in India’s dairy sector,” said Jinesh Shah, Managing Partner at Omnivore.

There are 75 million dairy farmers in the $145-billion dairy sector in India, according to a statement from DGV, and is among the largest in the world contributing over 4% of India’s gross domestic product and 25% of agricultural output.

“Despite the huge size of this industry and its importance to our livelihoods, dairy farmers lack access to basic financial products and services and even struggle to access cash conveniently,” said Kitty Agarwal, partner at Info Edge Ventures.

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