August 13, 2019
India's agritech sector growing 25% year-on-year: Report
According to a report by the National Association of Software and Service Companies (NASSCOM) released last week, as of June 2019, India's agritech sector is growing 25% year-on-year and has received more than US$248 million in funding, a rise of 300% compared to the previous year, Livemint reports.
According to the report, Agritech in India - Emerging Trends in 2019, India currently has more than 450 start-ups in the agritech sector.
The sector has over recent years seen some global and sector-focused funds investing directly in agritech start-ups.
With the increase in funding, 48% agritech CEOs believe they have the next agritech unicorn in the coming three years. A unicorn is a term used in the venture capital industry to describe a startup company with a value of over US$1 billion.
Debjani Ghosh, president, NASSCOM, says, "India's agriculture sector is advancing steadily towards its digital transformation and the start-up ecosystem is playing a critical role here, bringing innovation and disruption in much-needed areas. Adoption of technology in agriculture has always needed a structured institutional focus and technology firms are trying to break into the agricultural landscape using newer business models. The findings of the report are testimony to the potential of the agritech industry and the opportunities that India presents in the agriculture and farming landscape.
With a rising number of local farmers accepting start-up solutions, there has been a marked shift seen from B2C to B2B start-ups.
Corporates and investors were reported to play a critical role in support of over US$200 million investment in B2B start-ups in the past 18 months, making it a key revenue generating segment in the overall agritech sector. This has enabled creating better access to market, faster technology adoption and bringing domain-specific product development support to the industry. Indian companies are increasingly looking at global markets to expand with a focus on regions like Southeast Asia, Europe, Africa and South America.
Emerging areas like market linkage, digital agriculture, better access to inputs and financing are gaining traction. These technology adoptions are enabling startups to help local farming become a sustainable and profit-yielding enterprise.
With public private partnerships and government support, several Indian states have established progressive agritech policies.