Four professionals with backgrounds in Germany, the US, and Argentina returned to India over a decade ago to explore opportunities in aquaculture, an industry they were unfamiliar with. They discovered a vast ₹35,000 Cr shrimp export market in Andhra Pradesh, largely operating without formal financial systems, insurance, or reliable data.
This realization led to the founding of AquaExchange, an agritech startup dedicated to creating a full-stack technology platform for shrimp farming. This platform integrates IoT devices, financing, insurance, and market connections.
Founded by Pavan Kosaraju, Hemasundar Dhavili, Kareem Mohammod, and Kiran Bandi, AquaExchange has made significant strides, currently working with over 71,000 acres of farms and nearly 6,000 farmers. Their goal is to revolutionize aquaculture by establishing a robust data infrastructure directly on farms.
Market Impact
India is a major player in the global shrimp export market, with 7.16 lakh MT of frozen shrimp exported in 2023-24, valued at $4.88 billion. This accounted for 40.19% of the total quantity and 66.12% of the dollar earnings from seafood exports, according to the Marine Products Export Development Authority (MPEDA).
Despite this, the sector suffers from a lack of visibility and data. Kosaraju noted that basic questions about cultivation areas often went unanswered. AquaExchange identified the core issue as the absence of structured data and risk management, prompting them to build a bottom-up infrastructure.
Innovative Solutions
One of AquaExchange's first innovations was Powerman, an IoT-based power monitoring system for shrimp ponds. This device tracks aeration motors, crucial for maintaining shrimp health, and alerts farmers to power disruptions. Currently, over 20,000 devices are in use, providing valuable operational insights.
The company has expanded its offerings to include automated feeding systems, water monitoring devices, and analytics tools. AquaExchange designs and manufactures its devices in-house to keep costs manageable for small farmers, emphasizing frugal engineering.
Financial Services and Insurance
Once data visibility was enhanced, AquaExchange began integrating financial services. By collaborating with banks and non-banking financial companies (NBFCs), they introduced financing solutions based on real-time farm insights and a standardized risk scoring system.
Insurance products have also evolved, now covering disease risks, which are a significant issue in shrimp farming. In the past six months, farmers have claimed over ₹2 crore for losses due to diseases like white spot syndrome.
Market Linkages and Future Plans
AquaExchange is focusing on market linkages by digitizing farm data and collaborating with certification bodies. This helps farmers meet global quality standards and gain access to international markets.
The company competes with AquaConnect and operates within a crowded agritech ecosystem, which has seen varied funding trends. Despite a slowdown in funding, interest in precision agriculture and supply chain technologies remains strong, benefiting AquaExchange.
In March, AquaExchange raised $8 million in a Series B funding round, which will support its growth. The company anticipates revenues of approximately ₹275 Cr in FY26 and aims to achieve profitability by FY27.
Global Expansion
AquaExchange has plans to expand internationally, having already entered markets in Ecuador, Saudi Arabia, and Madagascar. The long-term vision is to replicate their successful model across other sectors, including fish, poultry, and dairy, establishing a digital infrastructure for the broader animal-protein economy.
