As per a new report by Avendus Capital, India’s agritech sector is likely to grow in scale and will have 8-10 startups with more than a billion dollars in value each over the next five years.

The report titled ‘Agritech-Leading next decade’s tech-first value creation’ highlighted that over the next three to five years, 2-3 companies would become worthy of launching initial public offerings (IPOs).

For the report, Avendus Capital covered B2B agritech firms such as Absolute Foods, Arya.Ag, Agnext, Captain Fresh, Dehaat, Farmart, Vegrow, Bighaat, and Bijak and B2C firms such as Country Delight and Licious. 

Indian Agritech Sector

It highlighted that since 2010, almost $3 billion of funding had been invested in more than 1,500 agritech companies in India, compared to the $45 billion raised globally by such firms. Around 17 Indian startups have crossed $100 million in annual revenues. 

Speaking about the development, Pankaj Naik, Co-head, Digital and technology investment banking at Avendus, said, 

“Farming in India is characterized by relatively smaller farm sizes and lower yields per hectare vis-à-vis global counterparts. This, coupled with fragmented, inefficient supply chains and unorganized retail, lends a uniqueness to the market.” 

The report also highlighted:

• With increased rural India internet penetration and covid-19 driving structural changes in the supply chain, the last two years have seen a sharp turnaround for the sector. 
• In the last two years, almost $2 billion of capital was raised, amounting to 63% of the total capital invested in the space.
• This year, almost 1.2 billion went into the sector, while for nine months that ended September, $796 million was pumped into the sector.
• By 2027, the agri value chain disruption potential is expected to reach $34 billion, with almost 25 million farmers getting impacted.

Over the next five years, agritech space is anticipated to drive the next wave of technology-led impact with a compound annual growth rate (CAGR) of around 50%, reaching $34 billion in gross merchandise value (GMV) by 2027, a sharp rise from the current $4 billion. 

Follow us and connect with us on Instagram, Facebook, Twitter, and LinkedIn.

Note: If you are a budding entrepreneur and require assistance to register a Pvt Ltd Company, register a company, create financial projections, business development, LLP Registration, compliance filing, funding formalities, CFO Services, or other startup related legal services, contact us.