Agriculture and technology are finally together, and the bond is relied upon to become more grounded and more engaging with the time. Five years ago, agritech was the new phrase in India. However, today, we witness several entrepreneurs creating technologies changing Indian agriculture practices as the Indian Farmer advances. Additionally, new funding agency have an emphasis on the Indian Agritech sector.
In recent years, the presence of AgTechs has expanded. According to information from Startup India, the nation has almost 3,116 enlisted food and agriculture startups. This number has raised 25% to 30% yearly. A large portion of these new agritech companies emerged in recent five years, and almost 500 have crossed the Proof of Concept (PoC) stage.
According to the number of AgTechs, India positions second around the world, just behind the US. A 2018 PwC report assessed the general target market for AgTechs in India to be more than USD 350 billion. Still, the joined income of all food and Agri startups in India is under 100 million USD, demonstrating a tremendous open door for AgTechs to disrupt the market. This also opens opportunities for an agritech funding agency.
Investments by Funding Agency in the Agritech Sector has increased exponentially.
The increasing requirement for online business in rural India fascinated Venture Capitalists from all over the world. In recent years funding agencies have put investment into almost a dozen agritech organizations in India. The momentum and quantum of funding appear to be expanding as a portion of the beneficiary organizations have raised series B or series C. The majority of these organizations have a disruptive model for the conventional Indian farming sector.
Funding agencies are likewise intrigued by AgTechs in India. This sector presently has over 90 active institutional investors and 250 angel investors. This interest has converted into higher venture estimates—the industry has seen investments worth about USD 500 million since 2014, with over 50% of this amount was invested in 2019. AgTech in India got a significant lift almost a year ago, with Tiger Global putting USD 89.5 million in NinjaCart. Besides, this sector has got attention because of COVID-19, as AgTechs provide primary products and services. The pandemic has introduced an open door for development for lots of AgTechs and has shown their flexibility and significance.
Here are some active Funding Agency for Agtech Sector
1. Accel Partners
Accel, earlier known as Accel Partners, is an American investment firm. Accel works with the startup in seed, early, and growth-stage ventures. This funding agency has developed its interest in the agricultural sector and funded many Agritech startups in India, namely, NinjaCart, AgroStar, and Clover.
Started in 2015, Ninjacart is a Bengaluru based startup established by Thirukumaran Nagarajan, Kartheeswaran K, Ashutosh Vikram, Sharath Loganathan, and Vasudevan Chinnathambi. Ninjacart uses its creative technology to work on one of the most challenging agricultural supply chain issues and empower retailers and dealers to fresh source produce straight from the farmers at a competitive cost.
Agri-tech stage Ninjacart has raised Rs 250 crore in a Series B funding round from funding agencies such as Accel US, Neoplux, Trifecta Capital, Joe Hirao (the organizer of ZIGExN), HR Capital, and Syngenta Ventures.
Pune-based ULink AgriTech Pvt. Ltd, which works direct-to-farmer mobile-based retail platform AgroStar. The startup has raised $10 million (around Rs 66.6 crore) in its Series B round by Accel Partners, the organization said in an announcement.
“There is a scope to use innovation to solve the issues faced by farmers in India. AgroStar has exhibited that farmers are prepared to adjust in the latest technology that can make their life easy and improve profitability,” said Prashanth Prakash, partner, Accel India.
Greenhouse agritech startup Clover has brought over $5.5 million in a Series A funding round, from funding agency Omnivore and existing financial investor Accel and Mayfield. Accel funds into Clover’s seed round in December 2018, when the organization was still in secrecy mode.
Clover is an agritech platform that works with farmers across India and markets greenhouse developed produce through business to business (B2B) and business to customer (B2C) channels.
Omnivore is a funding agency that puts funds into India’s startup, creating advanced technologies for food, agriculture, and the rural economy. Omnivore thinks that the way to change rural India lies in expanding agriculture’s profitability, improving cultivation, and diminishing farmers’ vulnerability.
It supported different agritech startup, for example, DeHaat, Clover, Bijak, and Stellapps.
Impact funding investor Omnivore has made a new bet in the agritech area. It funded $4.3 Mn (INR 30 Cr) pre-series A round in Gurugram-based online commercial place for farm products and services, DeHaat.
Established in 2012 by Shashank Kumar, DeHaat offers end-to-end agrarian services to farmers, including distribution of best quality Agri inputs, modified farm advice, door to financial services, and market linkages for selling their product.
Clover Ventures Pvt., an Agri-tech startup set up by ex-executive at investment firm Aavishkaar Venture Management Services Ltd, has raised $5.5 million (Rs 39.14 crore) from funding agency Omnivore.
Clover, which was founded in December 2017 by Avinash, says it is a greenhouse Agri-tech startup. The platform partners with farmers across India and markets premium quality, branded, greenhouse developed fresh products through B2B and B2C channels.
Bijak, a B2B trade stage for the rural region, declared it had raised $2.5 million from Omnivore, Omidyar Network India, Sequoia Capital India’s rapid scale-up program – Surge, and Better Capital.
Omnivore said it is looking forward to aiding Bijak to scale up, utilizing its network over the Agri biological system, and onboard B2B clients.
3. Ankur Capital
Ankur Capital is an early phase funding agency that puts funds into circumstances made by rising aspirations and digital access for billion Indians. One of Ankur Capital’s focus territory is technologies and product developments in agribusiness. Ankur Capital has put funds into five agribusinesses – CropIn (prescient AgTech), BigHaat (internet business for Agri inputs), Tessol (eutectic based cold storage), Suma Agro (Soil nutrition), and Health Sutra (ready to eat/cook millet-based items). Ankur is the leading beginning phase financial investor in Agri and, with ThinkAg2030, drives the discourse for the upcoming Ag transformation.
Ankur Capital has funded Rs 50 lakh ($81,000) in convertible debt in Bangalore-based CropIn Technology Solutions Pvt Ltd, which gives a cloud-based stage to help farmers track their produce and transfer status, for 30% stake.
The shortcoming in the Agri distribution space drove by Bengaluru-based BigHaat to directly interface the Agri produce providers. The startup sells seeds, products (for plant protection and nutrition), tools, and so on., to the farmer, to essentially eliminate the travel time required for the acquirement of goods. It raised funding in December 2016 from funding agency Ankur Capital.
An agri-tech startup Agricx Lab has raised about Rs.3.2 crore ($500,000) funding led by Ankur Capital. IIM Ahmedabad based incubator CIIE additionally took part in the financing round.
Ritu Verma, the managing partner at Ankur Capital, commented that Globally, there is a need to comprehend the quality of food we eat. Much of global production comes from geographies with low penetration of organized players, many different seed varieties and farming practices, and a multi-point value chain.