The Rise of Agritech in India
- There's a reason agritech was predicted to be a top startup sector for 2023.
- Agritech startups have raised approx. INR 6,600 crore over the last 4 years, witnessing a growth of over 50% per annum! The sector is set to boom.
According to a report by NASSCOM, the Indian agritech sector received over $500 million in investments in 2020 alone. This is a testament to the sector's growth potential and the significant role it can play in India's economic development.
The Agritech Revolution
In recent years, India has seen a surge in the number of agritech startups, thanks to the increasing demand for sustainable agriculture practices and the need to feed its burgeoning population. These startups are leveraging cutting-edge technologies to revolutionize the way farmers grow and market their crops, and in the process, they are helping to transform India's agriculture sector.
What factors contributed to this sectoral growth?
Advancements in technology: The advent of new technologies such as artificial intelligence, machine learning, and data analytics has enabled agritech startups to develop innovative solutions that can help farmers improve crop yields, reduce costs, and increase profitability.
Government support: The Indian government has launched several initiatives to support the growth of the agritech sector in the country. For example, the government has launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme, which provides insurance coverage to farmers against crop losses due to natural calamities and other factors. The government has also launched the eNAM platform, which is an online marketplace for agricultural commodities that aims to provide farmers with a better price for their produce.
Increasing internet and smartphone penetration: The increasing internet and smartphone penetration in rural areas of India have provided a significant boost to the agritech sector. This has enabled farmers to access information about weather, crop prices, and farming practices, which in turn has helped them to make informed decisions.
Innovative business models: Agritech startups in India have developed innovative business models that allow them to provide affordable and accessible services to farmers. For example, some agritech startups offer farmers access to farm equipment and machinery on a rental basis, which reduces their capital expenditure and improves their productivity.
Focus on sustainability: Many agritech startups in India are focused on developing sustainable farming practices that reduce the use of harmful chemicals and pesticides. This focus on sustainability has resonated with consumers, who are increasingly concerned about the impact of agriculture on the environment.
India currently has over 1300 agriculture startups – which are actively employing artificial intelligence (AI), machine learning (ML), internet of things (IoT), etc. – to increase efficiency and productivity in the sector.
Some of the most common names in the industry that made it big include:
AgroStar - AgroStar is an agritech platform that provides farmers with information about crop management, pest control, and fertilizers. The platform also enables farmers to purchase agricultural inputs such as seeds, fertilizers, and pesticides at discounted prices.
CropIn - CropIn is a digital platform that helps farmers to monitor their crops in real-time. The platform uses satellite imagery, weather data, and machine learning algorithms to provide farmers with insights about their crops' health and growth.
Ninjacart - Ninjacart is a B2B agritech startup that connects farmers directly with retailers and restaurants. The platform enables farmers to sell their produce at fair prices and provides retailers with fresh produce at competitive prices.
DeHaat - DeHaat is an agritech platform that provides farmers with access to finance, inputs, and markets. The platform uses technology to aggregate demand and supply, enabling farmers to sell their produce at fair prices.
Ergos - Ergos is an agritech startup that provides warehousing and collateral management services to farmers. The platform enables farmers to store their produce in warehouses and access finance using their stored produce as collateral.
This year, Favcy also onboarded a disruptive agritech startup onto its portfolio - AgREmarket. Hear the Founder's pitch LIVE on Sunday, 26th March, 12 PM onwards to learn how AgREmarket is building India’s first agritech platform for agri-brokers to access on-demand buyers for reselling agri-goods with price bidding options and warehousing solutions.
These agritech startups are not only transforming India's agriculture sector, but they are also attracting significant investments from both domestic and international investors. According to a report by NASSCOM, the Indian agritech sector received over $500 million in investments in 2020 alone. This is a testament to the sector's growth potential and the significant role it can play in India's economic development.
In conclusion, the rise of agritech startups in India is a welcome development that is helping to transform the country's agriculture sector. These startups are leveraging technology to address some of the sector's most pressing challenges and are helping farmers to increase their yields, reduce costs, and improve their incomes. With continued investment and support, India's agritech sector has the potential to become a global leader in sustainable agriculture practices and a key driver of the country's economic growth.