Funding is pouring in, for agritech startups, that are disrupting farming and agriculture in the country, with innovative solutions ranging from supply chain for agribusiness, marketplaces for connecting farmers with buyers, trading platforms, solar-powered irrigation pumps, to loan platforms for farmers.

There are around 2,250 active agritech startups, in India and from 2021 onward to date, they have received close to $3 billion in funding, according to data provided exclusively to businessline by Tracxn. Since 2021, funding to agritechs has been 45.8 per cent of all time funding to the segment, which is around $6 billion.

Big opportunity

The agritech startup opportunity in India, has been estimated at $24 billion according to EY, and it has been barely scratched. The Central Government’s Digital Agriculture Mission, was launched in 2021, with the intention of helping startups in the segment leverage advances in cloud computing, earth observations and artificial intelligence.

In fact, there are quite a few startups that are using AI-enabled solutions, such as DeHaat, which provides services such as soil testing and yield predictions using artificial intelligence. CropIn, leverages AI models, to offer location and crop agnostic, ag-knowledge graphs, intelligence at crop, location, and pin code levels, and convergence of satellite imagery and cloud computing. It offers solutions for farming companies, agri-input companies, crop insurance providers, seed production companies, governments, and advisories.

At a rough estimate, online ecommerce platform that connect grainer growers and farmers with their customers, food tech and supply chain technologies are three major segments, where startups seem to be concentrated.

Crofarm, Fraazo, Ninjacart, Farmart provide either B2C or B2B platforms for farm produce.

Unicorns and Soonicorns

Licious, an app-based retailer offering meat products, became a unicorn in 2021, and is now valued at over $1.5 billion. Backed by Avendus, Temasek and Mayfield, the startup reported $100.6 million revenue in FY23, and loss of $65.4 million. It has received total funding, of over $490 million in 12 rounds.

Walmart-backed Ninjacart, is a soonicorn with a valuation of $775 million. It reported revenue of $151 million in FY23, and loss of $40.7 million. Last month, it entered into a partnership with Philippine B2B agritech innovator Mayani, to jointly set up an integrated Asian agri-food supply chain.

Waycool, a full-stack tech-led supply chain provider, focuses on food cultivation, processing and distribution. It has a valuation of over $712 million. Other Soonicorns include DeHaat with a valuation of $688 million  and FreshtoHomeFoods that has a valuation of $572 million.

Other areas where agritechs are making a significant impact are precision farming, that enhances crop yields, and promotes sustainable farming with efficient use of resources, data driven farming solutions, and machine-based quality management.

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