Current state of Agri-startups in India

  • Despite a pandemic-hit year, agritech start-ups in 2020 saw over $300 million of investments.
  • As per a recent study by Accel-Omnivore, funding in the agritech sector rose from $45.8 million in 2016 to $430.6 million in 2020—a 4x growth during this period.
  • The number of such start-ups has shown steady growth with around 600-700 start-ups dominating the Indian agritech ecosystem.
  • According to a Ken Research report,
    • the Indian Agritech market was expected to grow at a CAGR (revenue) of 32 per cent from FY20 to FY25.
    • Karnataka, Maharashtra and Delhi-NCR had the most number of Agri-tech start-ups in the country.
    • It is estimated that $10bn will be invested in Indian Agri-tech start-ups over the next 10 years.
  • Currently, 8% or 1294 of the total recognized start-ups in the country are in Agri startups space as per the Economic Survey of 2019-20.
  • Of these, 54% are classified as Agri-tech while the rest are in the field of dairy farming, food processing and organic agriculture.