The agritech segment in particular has attracted a surge of startups that are offering technology-based solutions thereby allowing large-scale traditional enterprises to focus on increasing operational efficiencies.
A Surge In Agritech Startup Funding
According to industry estimates, India is said to have more than 1000 agritech startups employing artificial intelligence (AI), machine learning (ML), and internet of things (IoT) as on March 2022.
India has received a total funding of $1.6 Bn in agritech startups till 2021, making it the third largest country in the world with regard to agritech funding.
The Confederation of Indian Industry (CII) in collaboration with Bain & Company jointly produced a report in March 2022 which indicates that private equity (PE) investments are primarily focused on systemic issues in the agritech industry and its sustainable development. PE investments in agritech startups between 2017 and 2020 amounted to INR 6.6 Cr, with a growth rate of over 50%.
While the pandemic hampered business dynamics across industries, the agriculture sector remained largely unaffected, rather putting them on an upwards growth trajectory. The consistently growing demand for food has further improved the potential for expanding market reach for farmers and agribusinesses in the country.
