In an age where ‘organic’ labels are commonplace, understanding the complete journey of food products is crucial. This includes tracking everything from raw material sourcing to manufacturing, quality control, packaging, transport, and storage.
Despite efforts from various companies, significant gaps persist in the food supply chain. Reports indicate that unsafe food contributes to 420,000 deaths and sickens at least 600 million people globally each year. Issues arise in sourcing, quality checks, and compliance, where stakeholders often depend on fragmented records and manual documentation.
Without a unified, verifiable data layer, demonstrating compliance or sustainability claims becomes increasingly challenging as supply chains become more intricate.
India ranks 102nd out of 123 countries on the Global Hunger Index, with foodborne pathogens posing a serious threat. A large portion of the food market remains unorganized. This is where Bengaluru-based TraceX Technologies aims to make a difference, targeting the food traceability market projected to reach $1.7 billion by the end of the decade.
Founded in 2019 by Srivatsa Sreenivasarao, TraceX provides end-to-end visibility in supply chains, ensuring compliance and managing carbon footprints for agro-processing industries and packaged food companies. Sreenivasarao shared, “We put AI to use in building a platform to capture, connect and verify supply chain data at scale.”
TraceX's services include compliance with the EU Deforestation-free Regulation (EUDR), food traceability, digital product passports, farm management, and sustainability reporting, catering to agribusinesses and compliance teams.
The startup operates with a team of around 20 and follows an enterprise-led model, with a minimum annual ticket size of ₹18–20 lakh. For FY25, TraceX reported a revenue of approximately ₹3 crore and aims for an annual recurring revenue (ARR) of ₹4.5 crore in FY26.
Sreenivasarao, an electrical engineer, has over a decade of experience in software product development. His journey into the startup world began after leading product and engineering at a tech startup, which pivoted away from foodtech. His interest in food systems and supply chains was further deepened through an executive management program at IIM Bangalore.
Prior to TraceX, he co-founded Jivabhumi, an agritech venture focused on chemical-free produce. It was during this time that he recognized the significant structural gaps in supply chains, where farm data was often manually recorded and inconsistently maintained.
TraceX was born out of the need for reliable verification of how products move from farm to consumer. The platform aims to create a digital infrastructure layer for supply chains, enabling various stakeholders—from farmers to exporters—to capture and share verified data.
At the heart of this system is a chain-of-custody framework that documents every step of a product's journey, using blockchain technology to maintain a tamper-proof record of transactions.
To tackle the challenge of data collection, particularly in regions with uneven digitization, TraceX employs multilingual, offline-first applications that allow field agents to gather data directly from the ground. This data is then integrated with enterprise systems and external datasets to provide a comprehensive overview.
TraceX's platform addresses three core needs: regulatory compliance, sustainable sourcing, and digital measurement, reporting, and verification (DMRV). As regulations like the EUDR gain momentum, companies must maintain detailed records of sourcing and production. TraceX aids enterprises in mapping supply chains, assessing supplier risks, and generating audit-ready documentation.
By digitizing data at the farm and crop levels, the platform enables companies to validate responsible procurement practices and comply with global sustainability certification requirements. Additionally, it supports environmental reporting by tracking nature-based interventions and calculating carbon emissions.
To assist businesses with complex regulations, TraceX has developed an AI-powered compliance platform called Clara, which streamlines supplier due diligence and geographic risk assessments.
While originally designed for agriculture, TraceX's solutions are applicable across various industries, including paper and automotive. Notable clients such as JK Paper and Yokohama utilize the platform for tracking raw material sourcing and assessing environmental risks.
As supply chain transparency becomes essential, TraceX stands out by integrating traceability, compliance, and sustainability reporting into a single platform. This approach empowers companies to leverage supply chain data for informed decision-making and regulatory compliance.
Looking forward, TraceX is focusing on European markets where regulations around sourcing transparency and sustainability are tightening. For companies exporting to these regions, traceability is becoming a critical requirement, positioning TraceX to meet the growing demand for verifiable, data-driven operations.
