September 4, 2024

By Gerelyn Terzo, Global AgInvesting Media

South Australian agtech Cropify, which is behind AI- and machine learning-powered technology to grade grains in the supply chain, has attracted A$2 million (US$1.3 million) to its coffers in a seed round, according to reports. Led by Australian and Singaporean VCs Mandalay Venture Partners and Hatcher+, respectively, the round marks a shift in strategy for the company, which until now was mostly self-funded. The backing represents the first joint investment between the VC firms with a view toward backing “many more” agri-food startups, according to Mandalay Venture Partners.

In 2022, Cropify was among a cohort of South Australian agri-business recipients of grant funds through the Agtech Growth Fund. Cropify was co-founded by CEO Anna Falkiner and COO Andrew Hannon in 2019 amid a grant and engineering support from the Australian Institute of Machine Learning.

The latest capital injection is expected to go a long way toward accelerating the commercialization of its cutting-edge smart-grading system. Cropify’s Falkiner is cited by SmartCompany as saying, “This funding round marks a pivotal moment, enabling us to strengthen our team and focus on commercializing our innovative technology in Australia in 2025.”

Cropify’s technology uses AI and machine learning to objectively and precisely test pulse and grain commodities globally with the lofty aim of replacing the subjective testing of these crops from paddock to destination port. Its grain classification system recognizes a trio of objective categories, comprising defective, contaminant and foreign material, swapping out the conventional grading method with AI and machine learning. In turn, these test results are shared with growers, marketers and end users in real time to enable more informed decisions across the food supply chain, thereby achieving lower costs, greater sustainability, a smaller carbon footprint and fewer plastics.

According to Cropify, the impact on Australia’s ag industry could be massive. The company predicts potential reduced carbon emissions of 138 metric tons (MTs), 22 MTs of plastic removed, 167 MTs of carbon reduction in pulse testing and over A$44 million (US$29.6 million) in potential industry savings.

Cropify COO Andrew Hannon touted an alignment of vision with investors to impact the global agri-food market and is cited by SmartCompany as saying, “We are thrilled to see this level of investment, which underscores the value of our technology and the pressing need it addresses. The strong backing from all corners of the agricultural industry — from growers to advisors — is incredibly encouraging…. Those who are relentless in their pursuit of business and supply chain optimization will be best equipped to succeed, particularly as they navigate evolving economic and climatic challenges.”

Mark Gustowski of Mandalay Venture Partners stated on LinkedIn, “Delighted to announce our investment collaboration with Hatcher+ to invest in amazing agri-food tech startups globally. No better way to kick things off than to work with the Cropify team Anna Falkiner and Andrew Hannon on a Mandalay X Hatcher+ investment. More announcements coming soon!”

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