You can be on Entrepreneur’s cover!

Indian Agrifoodtech Startups Raise $2.4 Billion In 2022: Report India became the second-best funded market for agrifoodtech startups in 2022, after the US and overtaking China for the first time, as per the report

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

AgFounder and Omnivore have released the India Agrifood Startup Investment Report for 2023 that detailed $2.4 billion in startup investment, a 33% year-over-year decline from $3.6 billion in 2021. As per the report, the decline matches the global downward trend but there were bright spots where investors backed innovations focused on farmers and climate change.

While funding to startups in downstream and midstream categories fell 37% and 65% respectively in 2022, investments rose 50% in upstream categories in India, which is expected to overtake China as the world's most populous country this year. Furthermore, India became the second best funded market for agrifoodtech startups in 2022, after the US and overtaking China for the first time, as per the report.

Highlighting more insights, the report revealed that, startups innovating upstream, closer to farmers and across the supply chain, bucked the downward trend witnessed globally, raising $617 million, up 50% from $409 million in 2021. Adding on, farmtech investment also remained relatively strong, raising $1.1 billion in 2022, only a modest 15% drop from 2021.

"It is a challenging funding environment for startups globally and, as our report shows, India is no different. The relative increase in upstream financing is a welcome bright spot and reflects the urgency to fund technologies addressing the multiple inefficiencies in our food production and distribution systems that contribute to climate change and hunger," said Michael Dean, founding partner at AgFunder

As per the report, capital availability in India has tightened along with the rest of the world, although not as steeply as in developed markets. Indian venture investors remain bullish on upstream agrifoodtech innovations – those operating on the farm and in the supply chain – that offer deep moats and deliver affordable solutions to smallholder farmers.

"Across India's agrifoodtech ecosystem, 2023 will stress test startups, while also being an ideal vintage for VCs who can enter promising deals at cheap valuations. Despite the transient headwinds, agrifoodtech in India will continue to surge ahead," said Mark Kahn, managing partner, Omnivore.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Franchise

One Factor Is Helping This Entrepreneur Tackle Business Ownership Later in Life. Now, She's Jumping Into a $20 Billion Industry.

Stacey Howell has reinvented herself multiple times. In her latest move, she leverages her extensive corporate career, history of public service and experience running a nonprofit as a Woodhouse Spa franchisee.

Business News

A Look Inside the Company That Is Making $500 Million a Year Serving Italian Beef Sandwiches Made Famous by 'The Bear'

Portillo's CEO Michael Osanloo shares his secret to keeping hungry customers coming back again and again. (Hint: It requires a lot of napkins.)

Marketing

This Is the Framework You Need to Create a Brand Worth Your Customers' Loyalty and Make More Money Doing It

The first impression your customers will get of your business in this day and age is your website — so it needs to be created with intent. Here's how to use compelling storytelling on your website and one specific framework to capture their attention.

Growing a Business

Stanford Professors On the Counterintuitive Strategy That Helps Google Hire Top Talent

We assume that the best processes are seamless, but a little friction can go a long way.

Making a Change

New Users Can Take 20% off Lifetime Access to Babbel for a Limited Time

Take a lifetime to learn as many as 14 languages by using code ENJOY20 for an affordable subscription that could boost your business.

Side Hustle

How to Get the Most Money Out of Your Side Hustle During Tax Season, From an Expert Who Raised $75.2 Million to Make Filing Easier

Lauren Myrick started Found to solve the common problems she saw small business owners face.