The Agritech Sector In India: Industry Overview and Angel Investing Opportunities

Widely hailed as the primary sectors of India's economy, the agriculture and allied sectors serve as the bedrock for several other sectors. With the sector contributing 18.8% to the Gross Value Added to the economy, it is pivotal that it remains on the path of constant evolution.

More importantly, almost 55% of the country's aggregate workforce is engaged in agriculture and allied activities, thereby making the sector the centrepiece of potential advancements. It is no secret that the application of technology has ushered in disruptions in all major sectors: The agriculture sector is no exception, with agritech revolutionising its operations.

What Is Agritech?

Agritech is the application of various technological tools to enhance the efficiency of agricultural activities. From soil monitoring to weather analysis, from pest control to irrigation, from harvest to storage, agritech carries seemingly ceaseless potential.

In India, agritech is primarily being applied by way of automated irrigation of fields, forecasting of weather, maintenance of soil quality and temperature, and utilisation of Artificial Intelligence-based software to effect pesticide administration.

The State Of Agritech Investment in India

There is a substantial requirement for agritech in India, owing to an array of reasons, including inadequate irrigation for crops, insufficient supply chain mechanisms, and inefficient market linkages for farmers. All these reasons have fuelled the advent of agritech startup investors in India

The total number of agritech startups in the country has risen from 43 in 2014 to 1,822 in January 2023. A similar upward trajectory has been observed in the funding for agritech, which has grown from $1.1 million in 2014 to $515 million in 2022.

With total funding of $2 billion in agritech startups (till 2022), the agricultural sector in India is projected to benefit from the application of advanced technology. $305 million of this funding has been targeted towards enhancing the market linkages for agricultural products in the country.

According to data released by Fintrackr, nearly 100 agritech startups raised a capital in excess of $1 billion between January 2020 and June 2022. During 2021, the angel investing opportunities in the agritech sector led to a three-prong YOY rise in funding ($155 million in 2020 and $636 million in 2022). As of July 2022, $539 million has already been raised for the sector this fiscal.

Angel Investing Opportunities in Agritech Startups

With more than 1,300 agritech startups in India and the number steadily growing, individual angel investors and investor companies in India have no dearth of options to allocate their funds. Multiple industry projections suggest that the agritech market in India shall grow to $24 billion by the year 2025.

With Indian agritech startups being fuelled by policy support from the government as well as keen interest from domestic and international angel investors, the sector can realise its potential in the next decade. Since the agritech sector is still in a nascent stage and has achieved only about 1.5% penetration, there is vast potential for investment.

The agritech sector in India comprises substantial angel investing opportunities . If you are an angel investor and wish to choose an agritech startup to fund, you can join us at Venture Catalysts .

As India's leading startup incubator, we have funded 176 startups thus far, including those in the agritech space. You can also participate in agritech investment by joining the leading angel investing platform in India.

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