How TraceX Is Building The Data Layer For Verifiable Supply Chains

In today’s world, an “organic” label on a product might sound reassuring, but it barely scratches the surface. Tracing the entire journey of a food product, from raw material sourcing to manufacturing and quality control, to packaging, transport, and storage, is essential before it is declared safe for consumption. Even though many companies are working towards this, the gaps are still hard to ignore. According to the latest reports, consumption of unsafe food claims 420,000 lives and leaves at least 600 million people sick across the world every year. The gaps continue to surface across areas such as sourcing, quality checks, and compliance reviews, where stakeholders often rely on fragmented records and manual documentation. Without a shared, verifiable data layer, proving compliance or sustainability claims becomes difficult as supply chains grow more complex.

India ranked 102nd out of 123 countries on the Global Hunger Index. Foodborne pathogens strike hard, with a major portion of the market still far from organized. This is where Bengaluru-based TraceX Technologies steps in, looking to close these gaps in India’s food traceability market, which is expected to reach $1.7 billion by the end of the decade. Launched in 2019 by Srivatsa Sreenivasarao, the startup is offering end-to-end visibility, meeting global compliance, and managing carbon footprints across every touchpoint of the supply chain to agro-processing industries and packaged food companies.

“We put AI to use in building a platform to capture, connect, and verify supply chain data at scale,” Sreenivasarao told Inc42. Its offerings span use cases such as EU Deforestation-free Regulation (EUDR) compliance, food traceability, digital product passports, farm management, and sustainability reporting, serving agribusinesses, carbon project developers, and compliance teams. The company runs a team of about 20 people and follows an enterprise-led model, with a minimum annual ticket size of around ₹18–20 lakh. TraceX recorded significant growth in its first two years, demonstrating the demand for a robust data layer in supply chains.

The founders of TraceX recognized the need for a unified, verifiable data layer in the food supply chain to address the challenges of fragmented records and manual documentation. By leveraging AI and blockchain technology, TraceX has developed a platform that captures and verifies data across the entire supply chain, from raw materials to the final product. This enables stakeholders to trace the product’s journey, ensuring compliance with regulations and sustainability claims.

One of the key challenges in the food supply chain is ensuring compliance with regulations such as the EU Deforestation-free Regulation (EUDR). TraceX’s platform helps companies verify that their supply chain is free from deforestation-related issues, ensuring they meet the EUDR requirements. This not only helps companies avoid legal penalties but also enhances their reputation as environmentally responsible entities.

Another critical aspect of TraceX’s platform is food traceability. By providing end-to-end visibility into the supply chain, TraceX helps companies quickly identify and address any issues that may arise, such as contamination or unsafe practices. This ensures that the final product is safe for consumption and builds consumer trust.

TraceX’s platform also offers digital product passports, which provide a comprehensive record of a product’s journey from the farm to the consumer. This includes information on sourcing, quality checks, and compliance reviews, making it easier for consumers to make informed decisions about the products they purchase.

In addition to food traceability, TraceX’s platform also supports farm management and sustainability reporting. By capturing and verifying data across the entire supply chain, TraceX helps farmers and agribusinesses make more informed decisions about their operations, leading to increased efficiency and reduced environmental impact.

TraceX’s enterprise-led model, with a minimum annual ticket size of around ₹18–20 lakh, ensures that the platform is accessible to a wide range of businesses, from small-scale farmers to large agribusinesses. The company’s focus on scalability and customization allows it to cater to the specific needs of each client, making it a valuable partner for businesses looking to improve their supply chain operations.

The success of TraceX in the first two years of its operation highlights the growing demand for a robust data layer in the food supply chain. As the market for food traceability is expected to reach $1.7 billion by the end of the decade, TraceX is well-positioned to play a significant role in addressing the challenges faced by the industry and ensuring that consumers can trust the products they purchase. By leveraging AI and blockchain technology, TraceX is building a future where supply chains are transparent, compliant, and sustainable.