Dairy fintech start-up DGV to provide farmers access to institutional credit bl-premium-article-image

BL Chennai Bureau Updated - October 26, 2022 at 09:03 PM.

Digivriddhi Technologies Private Limited (DGV), India’s first integrated dairy fintech and marketplace platform, will provide dairy farmers access to institutional credit with an objective to ease and digitalise the dairy value chain. 

DGV has entered into a partnership with GCMMF (AMUL) to create the last-mile financial access infrastructure for 3.6 million dairy farmers in Gujarat. A company statement said the partnership should seen from the fact that 70 per cent of dairy farmers depend on informal credit. 

 DGV provides dairy farmers banking, financial services and insurance (BFSI) access starting with simplifying payments to them for the milk they pour at village-level societies. They are provided access to like digital cattle loans, insurance and a marketplace to discover quality bovines. 

DGV PAY and DGV MONEY will form the basis of financial inclusion for dairy farmers and dairy micro-enterprises in a simple and seamless way, the statement said.

Founded in 2019 by rural digital banking and payments veteran Ragavan Venkatesan, DGV works with some of India’s leading co-operatives dairy unions and their respective milk co-operative societies and farmers. It provides them access to payments, liabilities, and asset products in partnership with the Federal Bank.

Ragavan Venkatesan, Founder MD and CEO of DGV, said, “We first identified the cost and delay in accessing payments to the milk farmers and simplified the payment value chain through DGV PAY. Then we started addressing the basic banking needs and customized savings accounts for farmers, and current accounts for milk societies.”

Through direct integration with ERP systems across the dairy value chain, DGV has created an underwriting mechanism to facilitate digital working capital loans to milk societies and digital cattle loans for dairy farmers.

Since the livestock management industry is a $70-80 billion opportunity, where bovine discovery and pricing pose challenges, DGV came up with DGV Connect to simplify the discovery and establish the connection between buyer and seller with finance options for facilitating cattle loans, a one-stop platform progressively addressing all needs of dairy farmers - right from veterinary services to green foliage, vaccines for cattle and dairy farming equipment in the long run.

Digivriddhi Technologies Private Limited (DGV) raised $3.1 million in a pre-Series-A round from Info Edge Ventures and Omnivore in November 2021. DGV works with a number of leading banks and the Reserve Bank Innovation Hub (RBIH) on creating embedded digital financial journeys for the dairy ecosystem. 

Published on October 26, 2022 15:16

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