Agritech startups fared better in fiscal 23 than in fiscal 22, when funding reached a record $878 million in 54 deals, according to data from research firm Venture Intelligence. On a calendar year basis, investments in the first nine months of 2022 increased 67 percent to $393 million from $235 million the prior year
Indian agritech startups reportedly raised $296 million across 27 private equity and venture capital deals in the first half of this fiscal year, nearly double the $157 million through 23 deals during the same period. in fiscal year 22.
As other segments grapple with a funding winter, agtech continues to attract investors optimistic about the growth potential of the nascent sector amid rising demand for quality food, supported by macro tailwinds such as climate change and food safety concerns. . Agritech startups fared better in fiscal 23 than in fiscal 22, when funding reached a record $878 million in 54 deals, according to data from research firm Venture Intelligence. On a calendar year basis, investments in the first nine months of 2022 increased 67 percent to $393 million from $235 million the prior year. This also occurs when investors reduce funding for high-growth startups and turn bullish toward companies with a focus on profitability.
Robots, temperature and humidity sensors, aerial imagery, and GPS technology are commonly used in agriculture today. Robotic and precision farming systems, as well as advanced devices, allow companies to be more profitable, efficient, safe and environmentally friendly. Technological advances have helped all stakeholders in the domain, be it farmers, industry, consumers or the government. “Effective management of pre- and post-harvest productivity as well as dissemination of final products according to the market needs identified through technology in the agricultural sector,” said Akhilesh Jain, Co-Founder of Agrotech India.
Total investments in new-age Indian startups via the PE/VC route dropped by about 49 per cent to $9.8bn in the April-September period in FY23 from $19.2bn in the same period in FY22 amid rising inflation and dwindling liquidity concerns.
While funding for sectors such as edtech, healthtech and e-commerce moderated after Covid-19 restrictions were relaxed and offline services opened up, others, such as the fintech segment, faced the hurdles of a regulatory environment. uncertain.
Sheetal Bahl, partner at Merak Ventures, said: “In agritech, the focus of investment today is on companies trying to increase performance and provide solutions for waste management. New companies should offer services such as development and discovery of seeds for precision agriculture. In addition, improving the supply chain in the sector could also attract investors.” He also mentioned that the population is increasing exponentially and that the adverse impact of climate change on food production and distribution are the focal points of the segment.
Over the years, new-age technology companies have tried to create disruptive models within and across various segments of the agricultural value chain. The start of the pandemic in March 2020 brought a change in the way investors perceived agritech companies.
During the pandemic, new age ag tech solutions rose to the occasion. Jain further added that funding has a significant impact on the agritech sector, as identification of potential development areas is one task and implementation is another. There must be adequate research, development and innovation structures to face the problem we have with our current agri-food system.
Over the years, startups in the sector have attracted funding from a number of local sector-focused investors, with Omnivore and Ankur Capital being the most active in FY22. More recently, the founders said global tech investors, like Sequoia Capital and Alpha Wave Global, have begun investing in agtech startups.