The India AgriFoodTech Investment report of 2023 says that the agri food tech sector in India witnessed a significant increase in funding, with a total of USD 2.4 billion raised through 133 deals in 2022. The most active categories in terms of the number of deals were agribusiness marketplace, fintech, and eGrocery.
However, online restaurants and meal marketplaces, apart from Swiggy’s late-stage funding round of USD 700 million, did not experience substantial investment.
According to the India AgriFoodTech Investment report of 2023, the global economic slowdown and the impact of climate change have greatly influenced investment trends. Capital flows have become more cautious, with increased scrutiny on various performance metrics. The past decade, especially the years during the pandemic, highlighted the significance of technological innovation in ensuring food security.
The report also mentioned that India, like the rest of the world, faced a slowdown and reduced investment in 2022. However, there were some positive aspects, such as an increase in upstream investment. Macroeconomic challenges had a greater impact on downstream categories focused on consumers, leading to a significant decline in funding.
The report emphasised that apart from eGrocery, downstream and midstream categories experienced a decrease in investments and deal sizes. On the other hand, upstream categories, including agribusiness marketplace, fintech, farm robotics, and miscellaneous sectors like carbon credits creation and farmer-centric social media platforms, had a relatively better year with larger deal sizes.
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Regarding the amount raised, the report highlighted that Agribusiness Marketplaces and Fintech startups secured USD 428 million in 2022, representing a notable increase from the previous year. This category also stood out as the most active one in terms of the number of deals, with 32 deals closed throughout the year. Notably, DeHaat, a full-stack agricultural platform, led the way by raising USD 106 million in two funding rounds. The growth in technology adoption within the ecosystem allowed startups to address long standing challenges, particularly in accessing affordable formal finance.
To fortify livelihoods and supply chains, Fintechs and neo-banks like Ayekart and Jai Kisan are developing tailored products for various stakeholders.