Indian Agritech To Become a $34 Billion Market By 2027: Avendus Capital Study While digitizing and optimizing the supply chain is the largest opportunity for the sector, agritechs are adding value across the farming value chain
By Teena Jose
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Avendus Capital, India's premier investment banking franchise, has launched a report that takes a deep dive into India's agritech sector. According to the report, Indian agritech is expected to lead the next decade's technology-first value creation opportunity, growing at a CAGR of 50 per cent over the next five years and addressing a $34 billion market by 2027. It is expected to replicate the success of other tech sectors, creating unicorns in the next couple of years.
"Agriculture which contributes $530 billion to India's GDP, sees less than 1 per cent tech penetration. Tech disruption in this sector has the potential to positively impact over 40 million farmers, doubling their incomes. While there are large global outcomes in the sector, we believe that Indian agritech will be a Bharat-first story, given the interesting India-first outcomes disrupting the sector. Such unique innovations in production, supply-chain/market linkage, quality assessment and digital traceability have the potential to become 'India to the world' solutions," said Pankaj Naik, executive director and co-head, digital and technology investment banking, Avendus Capital, while launching the report.
While digitizing and optimizing the supply chain is the largest opportunity for the sector, agritechs are adding value across the farming value chain. A few of them are building businesses by using warehousing, financing, quality testing services as a hook for farmer engagement, according to the report.
"India is standing at the cusp of an AgriTech revolution as we see the confluence of rural India warming up to increased usage of technology platforms and entrepreneurs building tech-first business models solving farmer and buyer challenges across the spectrum from pre-farming, farming to distribution. Indian AgriTechs have been experimenting and pivoting over the last few years and have now identified scalable, capital-efficient business models with a strong path to profitability," said Varun Gupta, executive director, digital and technology investment banking, Avendus Capital.
Avendus Capital, the investment banking arm, is consistently ranked among the top investment banks in the country on the back of its in-depth domain understanding and a best in the class track record of domestic and cross-border transactions.
