India currently hosts more than 450 start-ups in the agritech sector, according to the National Association of Software and Service Companies (NASSCOM) report that was released on Monday.
According to the report, Agritech in India – Emerging Trends in 2019, the sector in India is growing at a rate of 25%, year on year, and has over the recent years witnessed some of global and sector-focused funds directly investing in agritech start-ups.
According to the report, as of June 2019, the sector has received more than $248 million funding, a rise of 300% as compared to the previous year.
With the recent rise in funding, 48% agritech CEOs, as per the NASSCOM survey, believe they have the next agritech unicorn in the coming three years.
According to Debjani Ghosh, President, NASSCOM: “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 more and more local farmers accepting the innovative start-up solutions, there has been a considerable shift witnessed from B2C to B2B start-ups.
Corporates and investors are playing a vital role in supporting this with over $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 South East Asia, Europe, Africa and South America.
In the last five years, more than five global agritech companies have ventured in India, as compared to more than 25 Indian agritech companies with global presence.
Emerging areas like market linkage, digital agriculture, better access to inputs and financing are gaining traction. These technology adoptions are enabling numerous agritech startups to bring forth farming-related advanced technological mechanisms 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.
It is estimated that by 2020 the agritech sector will be at the centerstage of innovation and will lead India's journey towards overall transformation. Therefore, the ecosystem needs to focus on driving innovation, data collaboration, easy working capital and providing digital infrastructure to enable real-time access to farmers across the country.