From Boom to Slowdown: Agritech Faces Harsh Reset as Funding Plunges in 2025 Yet the broader slowdown has not affected every sub-segment equally. Dairy-tech, for example, has held investor interest due to its scale and everyday consumption patterns.

Agritech funding in India has declined sharply this year, reversing the surge seen during the pandemic years and creating a turning point across the sector. According to data from Tracxn, agritech startups raised only about USD 182.19 million in 2025, a steep fall from USD 390.52 million in 2024 and USD 498.28 million in 2023. The contrast with the peak years is even stronger, when funding reached USD 1.17 billion in 2021 and USD 850.62 million in 2022. The slowdown has led to shutdowns, distressed deals, and a deeper evaluation of operating models that can withstand volatility.

Investors believe the reset is structural but not terminal. Jinesh Shah, Managing Partner at Omnivore, said, "Agritech funding in India has dropped sharply in 2025. From Omnivore's vantage point, what we see are overlapping forces at play. Global venture markets have recalibrated toward profitability, and Indian agritech sits inside that broader capital evolution. At the same time, the earliest cohort of agritech companies in India has reached a stage where their outcomes are being digested by investors, and that digestion period always feels like a slowdown."

He added that the slowdown reflects the deeply operational nature of building agritech businesses in India. "India's agritech opportunity is huge in real terms, but it is deeply operational. Venture investors outside the ecosystem are spending time building conviction in these models again, and that period of conviction building produces lower volumes temporarily. This is less a retreat and more a phase of architectural thinking."

Despite substantial capital inflow over the past decade, the sector has not yet produced a single unicorn. According to publicly reported valuation data, Ninjacart, DeHaat, and WayCool have raised major rounds in 2022 at valuations of about USD 815 million, USD 705 million, and USD 700 million respectively, without crossing the billion-dollar threshold.

City-wise investments also show long-term concentration patterns. According to "Agritech Report 2020–H1 2025" compiled by TheKredible, Delhi-NCR startups led funding with more than USD 851 million across 71 deals, accounting for 40.6 percent of total investments. Bengaluru followed with about USD 550 million across 76 deals. Chennai, Pune, and Mumbai attracted USD 254.75 million, USD 149.89 million, and USD 145.55 million respectively, while emerging hubs like Hyderabad, Kochi, and Ahmedabad also gained traction.

Yet the broader slowdown has not affected every sub-segment equally. Dairy-tech, for example, has held investor interest due to its scale and everyday consumption patterns. Ranjith Mukundan, CEO and Co-founder of Stellapps Technologies, said, "Dairy is a daily velocity segment and contributes nearly 8 percent of India's GDP. Prices remain stable, and the category is largely recession proof. This steady demand and direct income impact for millions of farmers make dairy-tech more resilient despite the broader slowdown."

Mukundan noted measurable improvements in farmer productivity. "In a controlled intervention over three years, Stellapps has demonstrated 56 percent increase in per-cattle productivity and 500 percent increase in farm income improvement," he said.

He added that climate-linked advisory, traceability, water-efficient practices, and new insurance products are strengthening resilience in dairy value chains. "To unlock the next phase of growth, India needs stronger digital infrastructure, wider cold-chain reach and clearer data standards for traceability."

Post-harvest services have also shown surprising strength. Anand Chandra, Co-founder and Executive Director of Arya.ag, said the funding crunch is accelerating consolidation around platforms that offer end-to-end services. "Demand hasn't gone down. It has become more focused. Farmers and FPOs are choosing to work with platforms that offer real value. In FY25, our financing crossed INR 2,000 crore with near-zero NPAs, while the broader sector struggled to justify unit economics." He added that Arya.ag grew revenue by 27 percent and profits by 70 percent in the same year.

Chandra said climate shocks have changed how farmers use storage infrastructure. "Storage has become a financial strategy. Farmers are increasingly using our warehouses mostly for price arbitrage. They deposit grain, take commodity-backed financing, and wait for better prices." He noted that climate uncertainty is making scientific storage more valuable than ever, while digital trading remains constrained by quality assurance and logistics gaps.

Investor caution has also sharpened deal flow. Sandiip Bhammer, Founder and Managing Partner at Green Frontier Capital, said, "If anything, the slowdown has improved the quality of deal flow. A lot of the asset-light marketplace models have disappeared. What we're seeing now are founders who understand agriculture, unit economics, and climate risk." He noted that full-stack businesses controlling quality and supply chains are scaling fastest, citing examples such as Nutrifresh and KisanKonnect.

Bhammer added that climate-resilient models are increasingly central to investment decisions. "Controlled-environment farming, climate-resilient growing systems, precision irrigation, and soil-free production are no longer niche. They are India's insurance policy against heat and erratic rainfall." He argued that profitability, climate impact, and scalability must converge for investor confidence to return.

Looking ahead, investors expect funding to remain selective in 2026–27 but believe strong, operationally grounded models will continue to attract capital. Shah of Omnivore said, "Capital is moving toward models that lean into resilience, margin quality, climate performance, and infrastructure rather than purely digital brokerage." He noted that climate-aligned technologies such as bio-inputs, soil health solutions, cold-chain systems, and deep-tech innovation remain strong themes.

The policy environment is also evolving. Since 2024, more than 210 venture capital, private equity, and government-backed funds have been launched in India, but only 23 specifically target agritech, including Northern Arc, Stride Ventures, Orient Growth Ventures, and Omnivore. Government-backed programmes such as AgriSURE, the Innovation and Agri-Entrepreneurship Development Programme under RKVY RAFTAAR, and Agri Udaan continue to support early-stage ventures.

For now, the sector is undergoing a necessary correction. As Chandra put it, "The fundamentals are strong. Indian agriculture has genuine problems that technology can solve. What we need is discipline in execution and honesty about what works. The capital will return when the sector earns it."