South Australian AI agtech startup Cropify has secured $2 million in funding, in a capital raise cornerstoned by Australian VC Mandalay Venture Partners and Singapore-based Hatcher+.
Mandalay and Hatcher+ contributed a combined $850,000 to the funding round, which represents their first joint investment under a new partnership announced this week.
The two funds say they are working together to “accelerate the growth of startups focusing on solutions from ‘farm-to-fork’”, and this will include on-farm technologies, farm gate solutions, supply chain innovations, and point-of-sale advancements”.
Founded in 2019 by CEO Anna Falkiner and chief operating officer Andrew Hannon, Cropify uses AI to improve the accuracy and efficiency of grain grading.
The Cropify system is designed to be used by growers, grain bulk handlers, and marketers to grade or classify pulse samples in a precise way that is both objective and repeatable.
It promises improved efficiency across the sector, leading to cost savings, as well as more sustainable processes that reduce CO2 emissions and the use of plastic.
Apart from grants from the Australian Institute of Machine Learning and the South Australian Department of Primary Industries and Regional Development’s AgTech Growth Fund, Cropify has largely been self-funded, according to Falkiner.
“This funding round marks a pivotal moment, enabling us to strengthen our team and focus on commercialising our innovative technology in Australia in 2025,” she said in comments provided to SmartCompany.
Hannon said Cropify has the potential to make a difference to the global agrifood market “and it’s clear our investors share that vision”.
“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,” he added.
The Australian grain growing sector is home to “a remarkable entrepreneurial spirit”, said Hannon, and this is why Australia is poised to be “at the forefront of global agriculture”.
“The future will belong to those growers and business owners who adopt technology to boost efficiency,” he said.
“Those who are relentless in their pursuit of business and supply chain optimisation will be best equipped to succeed, particularly as they navigate evolving economic and climatic challenges.”
Cropify joins a growing list of portfolio companies for Mandalay Venture Partners, which was founded in Brisbane in 2020.
This list also includes Nbryo, Naturo (Haelen), Harvest B, Agscent and FUL Foods.
Earlier this year, Mandalay revealed it had secured close to $27 million in funding commitments, with the Queensland Investment Corporation (QIC) among the investors to contribute to the fund. The VC has also received support from LaunchVic’s VC Support Program.
Mandalay managing partner Mark Gustowski told SmartCompany on Thursday that the VC has not committed to funding a specific number of companies, but plans to deploy capital through the Mandalay Fund 1 over the next four years.
“Where investments align with both Hatcher+ and Mandalay’s mandates, we will pursue co-investment opportunities in both Australian and international companies,” he says.
“South Australian-based Cropify, which boasts world-class technology, is the perfect example of this.”
Mandalay’s mission is to “sustainably feed the world’s growing population by supporting the most promising agrifood tech startups”, says Gustowski, and partnering with Hatcher+ will help further that goal.
In particular, the partnership will give Mandalay access to Hatcher+’s AI-powered FAAST (Funds as a Service Technology) platform, which Gustowski says will allow the investor to “ensure we’re backing the best innovators with the potential to transform the global food system”.
“We are committed to providing these startups with the global capital, expertise, and networks they need to succeed, and this partnership amplifies our ability to do so,” he added.
Hatcher+ managing partner John Sharp said in a statement the partnership will allow the VCs to “offer unparalleled support to startups, ensuring they have the resources, knowledge, and network to succeed”.
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Eloise is an experienced business journalist and editor, who has held senior editorial roles at SmartCompany since 2014. Prior to joining SmartCompany, Eloise was news editor at Books+Publishing, the trade press for the Australian book industry. Eloise has degrees in media and communications, marketing and business management, and political science. You can follow her on LinkedIn, and Twitter at @ellykeating.
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