agritech%20report%20v9

Market Linkage
Contents Scope Of The Report

Executive Summary
03
04
FaaS (Farming-as-a-Service)
Farm Inputs
Introduction 05 Agri-Fintech
Agriculture In India: Overview 06 Precision Agriculture
The State Of Agriculture In India

Industry Analysis Of Agritech Market In India 47
Factors Driving The Growth Of Agritech
SWOT Analysis
India’s Agritech Startup Landscap 13 Growth Drivers For Agritech Market In India
Agritech In India: Key Highlights Issues & Challenges In Indian Agritech Market
India’s Agritech Market Size Which Tech Indian Farmers Using? 51

Agritech Startup Launches
How Policies Are Shaping India’s 52
Agritech In India: Sub-Sector Landscape
Agritech Landscape
Agritech Market Segmentation
Table Of
Prominent Agritech Models Rise Of Hydroponics in India 58

Agritech Trends For 2021 & Beyond 62
Agritech Funding Landscape In India 27
Analysts’ Recommendation 65
Competitive and Financial 37
Landscape Of Agritech Startups Methodology 68
Bibliography 69
© Inc42 Media | not for distribution 2
Scope Of The Report
With over 50% of India earning its livelihood from agriculture, India’s agritech revolution not only has a massive opportunity but also will
influence the lives of over half a billion people.
In India, farmers have had to face acute challenges over decades which has eroded the stability that once made agriculture a powerful
economic sector. With the rise of industrialisation and manufacturing, the services-based economy and technology startups, the agriculture
sector had to take a backseat in terms of entrepreneurial focus and policy-making. This led to challenges such as small and fragmented
landholdings, low farm income, unorganised supply chains, land saturation, groundwater depletion and climate change, inefficient transport
and storage as well as limited access to finance.
Stepping into solve these challenges, India’s agritech startups are enabling more efficient market linkages for farmers, distributors and
consumers. But opportunities also lie in areas such as crop intelligence and monitoring, climate monitoring, input management and
procurement, revamping the supply chain to reduce wastage, access to advanced hardware and machinery, production-linked
agri-financing, farming-as-a-service (FaaS), urban farming and a lot more.
The State Of Indian Agritech 2020 Report Will Cover

The State Of Agriculture In India Role Of Policy And Regulations In Agritech
Agritech Market Potential In India State Of Hydroponics And Urban Farming In India
Business Models In Agritech In India Future Outlook And Projections For Agritech Market In India
SWOT Analysis, Recent Developments And Challenges Recommendations For Agritech Market In India

Executive Summary
$276.3 Bn 56% $467 Mn 1,000+
Estimated GVA By Contribution Of Farming Funding Raised By Number Of Agritech

Agriculture In FY20 Towards Agriculture Indian Agritech Startups Startups In India, 2020
GVA In FY20 During 2014 To H1 2020
$204 Mn $24.1 Bn ~1%
Agritech Tapped Agritech Market Agritech Penetration

Market Opportunity Potential In India, 2020 In India, 2020
In India, 2020

Introduction
Besides being the primary source of income for more than half the country, India is a crucial lynchpin in the global food supply chain. It is the
biggest producer, consumer, and exporter of spices in the world, and also the fourth largest exporter of seafood in the world, as per the
Rabobank World Seafood Trade Map 2019.
Given this, there has been a sustained push by the government as well as the food processing industry to bring in global investors to help
boost the prospects of Indian farmers. Even in terms of foreign investments, over $9.1 Bn have been invested in the Indian agriculture sector
from 2000-2019, as per data released by DPIIT, the central government department which handles startup affairs and policy.
Indeed, the massive $121 Mn investment in seafood-focused agritech startup FreshToHome led by Investment Corporation of Dubai (ICD) and
the US government-affiliated DFC in October 2020 highlights the prominence of agritech startups in the global investor pool. But this was not
always the case.
While the spotlight in the post-Covid world and the past year is squarely on agritech and the positive disruption at the farm level, it has been
a slow emergence for agritech startups in India which started in 2015 with the Startup India programme.

Agriculture In India:
An Overview
Gross Value Added By Agriculture In India To Reach $276.3 Bn
By FY2020
4% growth in GDP contribution of agriculture in FY20 expected to revive the sector after a weak 2019
279.8
276.3
About 58% of India’s population depends on
266.5 265.5
250.6 agriculture for subsistence 271.2 Mn estimated
farmers
According to Indian Brand Equity Foundation (IBEF),

the gross value added (GVA) or GDP contribution by
agriculture, forestry and fishing is estimated to be $
276.37 Bn in FY20 (PE).
Growth in the GVA in agriculture and allied sectors

stood at 4% in FY20
FY16 FY17 FY18 FY19 FY20
Source: IBEF

Farming Accounted For Over Half Of All Agriculture Value In FY20
With the largest livestock population, livestock was the second largest contributor to gross
agriculture value added in FY20
60% India is the largest producer of spices, pulses, milk,

tea, cashew, jute and maize
56%
It is the second largest producer of wheat, rice, fruits,

40% vegetables, sugarcane, cotton and oilseeds
Agriculture has a contribution of 12% to India’s total

30% exports
20%
46 out of the 60 known types of soil are present in
India, which is home to 20 agro-climatic regions and
all the 15 major climate systems in the world
9%
6%
0%
Farming Livestock Forestry Fishing India has the largest livestock population of around
535.78 Mn, 31% of the world’s livestock population.
Source: Press Information Bureau, Government of India

Factors Driving The Growth Of Agritech
Pain Points Of Indian Agriculture Sector Fueling The Rise Of Agritech
Despite its significance to the Indian economy, agriculture often played second fiddle to many of India’s emerging industries, particularly
in manufacturing and the IT services sector. This in turn led to agriculture taking a backseat and falling behind the times. There were other
factors too, which have necessitated today’s agritech push.
01 Inadequate And Unstructured Data
02 Lack Of Access To High Quality Inputs
03 Inefficient Supply Chain
04 Lack of Employment Rationalisation
05 High Cost of Equipment
06 Lack Of Finance
Source: Inc42 Plus

Agritech’s Rise In India: Key Factors
Inadequate And Unstructured Data: Acute lack of real-time data and insights act
as a barrier for tech penetration in the agri sector. Technologies such as drones,
sensors, IoT, blockchain, imaging, analytics and machine learning are all
dependent on data, which is not existent or unstructured in most cases.
Lack Of Access To High Quality Inputs : Indian farmers lack access to high quality
agricultural inputs, farm machinery and other allied equipment, which leads to low
agricultural productivity or low quality crops. Agritech startups have addressed this
challenge by increasing the accessibility through digital ecommerce platforms for
delivery of inputs such as seeds, fertilizers at the doorsteps of farmers.
Inefficient Supply Chain: Post harvest loss in India amounts to $13 Bn. which is
primarily due to the poor transportation and storage facilities. This creates
opportunities for the startups to streamline the supply chain by providing
warehousing monitoring solutions, market linkage and demand driven cold chains.

Agritech’s Rise In India: Key Factors
Lack of Employment Rationalisation: Agriculture sector employs 43% of India’s workforce,

contributing only 16% to GDP. This indicates that a large workforce needs to be rationally redistributed
through solutions that enable farm automation and aggregation.
High Cost of Equipment: Around 75% of the farmers own less than 1 hectare of land, hence making it
difficult to own equipment, also it is difficult for the farmers to buy heavy agricultural equipment due
to lack of funds or regular income. Startups offering farming-as-a-service (FaaS) are making
expensive farm equipment affordable for small and marginal farmers for more efficient farming by
converting fixed cost of equipment into a variable cost.
Lack Of Finance: Indian farmers have typically struggled to get loans from digital lending platforms
or even banks due to their bad credit history or lack of credit bureau data. Banks have traditionally
been a significant agri lender but in recent times, they have been constrained by bad loans-related
norms. This has created room for agri-fintech startups that are providing financial services beyond
loans, but also crop insurance and climate protection. These services are helping improve digital
financial inclusion of farmers and creating an alternate data source for traditional BFSI players.

India’s Agritech
Startup Landscape
Agritech In India: Key Highlights
India Agritech Tapped Addressable Agritech Agritech Penetration In

$204 Mn Market Opportunity, $24.1 Bn Market Potentioal In ~1% India Of Overall
2020 India, 2020 Agritech Potential
Highest Potential Funding Raised By

Agritech Startups In Market
1,000+ Agritech Segment In $467 Mn Agritech Startups
India, 2020 Linkage
India During 2014- H1 2020

Agritech In India: Key Highlights
$170 Bn
Total market opportunity in
terms of turnover
Addressable market
opportunity when adjusted
for net revenue to normalise
$24 Bn across segments
Current market size of agritech

is ~1% of overall agritech
$204 Mn market potential
Note: Turnover includes the value of inputs, gross income from agri loans and insurance, and value of produce
Source: Inc42 Plus, EY
Agritech Startup Launches
2017 2018 2019 2020
2013 2014 2015 2016
2009 2010 2011 2012
Correction Note | 12:20, January 19, 2021

Use or reference to the trademark logo of Zuari Agro Chemicals Limited in the report was an error and the same has been rectified by removing it.
Agritech In India: Sub-Sector Landscape
Sub-Sector Startups
Market Linkage
Farm Inputs
Precision Agriculture
FaaS
Financial Services
Source: Inc42 Plus

Use or reference to the trademark logo of Zuari Agro Chemicals Limited in the report was an error and the same has been rectified by removing it.
Farm Inputs: Digital FaaS: Bringing farm equipment, machinery and inputs on a pay-per-use or contract basis
marketplaces and subscription
models improving access to Precision Agriculture: Use of geospatial and weather data, IoT, sensors, robotics, drones and more to improve productivity,
high-quality farm inputs such create data-driven farm management solutions and improve resource management
as seeds, fertilizers and
Farm Automation: Startups bringing industrial automation to farms through machinery, tools and robots in seeding, material
pesticides
handling, harvesting and more
Biotechnology: Startups driving

Farm Infrastructure: Providing access to farming technologies such as greenhouse systems, indoor farming, drip irrigation,
research into plant and animal environmental control systems and more
sciences
Farm Inputs Farming, Cultivation Distribution & Post Production Retailing/ Selling Consumer
& Harvesting Transportations Processing & Handing
Quality Management & Traceability: Post-harvest produce handling, quality

check and analysis, produce monitoring and traceability in storage and
transportation
Market Linkage: Digital platform and physical infrastructure to handle
post-harvest supply chain and connect farm output with the customers
Financial Services: Improving financial inclusion for farmers through access to credit, insurance services and digital transactions
Information Platforms: Online platforms and apps for agritech education, fair pricing, weather information, market research and more.
Note: Only Farm Inputs, FaaS, Precision Agriculture, Quality Management & Traceabilty, Market Linkage and Financial Services Are Considered While Computing
Market Potential
Source: Inc42 Analysis © Inc42 Media | not for distribution 17
Agritech Market
Segmentation
Agritech In India: Market Potential Across Sub-Segments
In 2020, market linkage had $12 Bn market opportunity, followed by Lending/financial segment
Market Linkage 12
Market Potential In $ Bn
Financing 4
Precision Agriculture 3.4
Farm Inputs 1.7
Others 3
0 2 4 6 8 10 12
Source: EY, Inc42 Analysis

Prominent
Agritech Models
Farm Inputs
Traditional Model For Farm Inputs
100 7% - 10% Margin 107 - 110 7% - 10% Margin 115 - 120 4% - 5% Margin 120 - 125
Distributor Dealer Sub-Dealer Farmer
Typical Agritech Model For Farm Inputs

100 7% - 10% Margin 107 - 110 4% - 5% Margin 112 - 115
Agritech Player Sub-Dealer Farmer

Note: Cost is being Indexed © Inc42 Media | not for distribution 21
Precision Agriculture
Pays INR 1500- 2000 per year for testing to agritech players
Pays 5-8% commission for Collection and 20% for lead

generathion to Retail Collection Center
Logistics Company
Pays for transporting soil
Farmer Retail Collection Center Testing Lab Agritech Player
Pays INR 600 to INR 800 per test
Send Inputs on Crop & Farm Inputs Selection

Market Linkage
Traditional Market Linkage Value Chain
17 9 10
Transport Charges Trade Margin Wastage

168
100 117 22 158
Effective Realisation Farmer’s Price Transport To City Cash To Retailer Effective Cost To
For Farmer At Mandi (Ex-wastage) Retailer
10
Source: Inc42 Plus, EY Report

Semi Wholesaler Margin © Inc42 Media | not for distribution 23
Market Linkage
Agritech Market Linkage Value Chain
16 28 12 4
Effective Cost
Transport to Local Transport to city Agritech Player To Retailer
Collection Centre
104
160 164
Effective Realisation
For Farmer
Cost To Retailer Wastage

Farming-as-a-Service (FaaS)
The Farming-as-a-Service (FaaS) Model In Agritech
Send request for rental equipment to agritech player
Pays money to agritech player for the services
Farmer Agritech Player
Offers rental agri equipments on the basis of pay per use or subscription basis

Financial Services
Agri-Financial Services Model For Loans And Insurance
Crop Loans ( Income from the net

intrerest income)
Farm Digitized Records (e.g, output value

yield, cropping pattern)
Crop Insurance ( Income from the

net premium)

Agritech Funding
Landscape In India
Indian Agritech Funding Grew By 192.5% From 2014-2019
Over 467 Mn invested in agritech startups from 2014 to H1 2020
250.0 30
200.0
Number Of Funding Deals

20
150.0
Amount In $ Mn
100.0
10
50.0
0.0 0
2014 2015 2016 2017 2018 2019 2020
Funding Amount In $ Mn Number Of Funding Deals
Source: Inc42 Plus Analysis

Note: Based on disclosed funding till H1 2020

Agritech Funding By Sub-Sectors
Market Linkage Remains An Investor Favourite In Agritech Space
Overall, market linkage startups have bagged $305.2 Mn through funding from 2014 to H1 2020
400.0
300.0
Funding Amount In $ Mn
200.0
100.0
0.0
Market Linkage Farm Inputs Precision Agriculture FaaS Financing Others

Market Linkage Startups Dominate Agritech In Terms Of Funding Deals
Precision agriculture was another investors favourite with 29 funding deals from 2014 to H1 2020
15
Number Of Funding Deals
10
0
2014 2016 2018 2020
Market Linkage Farm Inputs Precision Agriculture FaaS Financing Others

Agritech Funding By Location
Bengaluru Leads Agritech Funding With Over $256.5 Mn
Raised Till H1 2020
Chennai and Pune are among the top three startup hubs for agritech
Others
5.9%
Patna
4.2%
Delhi NCR
10.5%
On The Basis Of
Pune Funding Amount
Bengaluru
11.6%
54.9%
Chennai
12.9%

Bengaluru Leads Among Startup Hubs For Agritech Funding
Delhi NCR and Pune followed in the agritech funding race in terms of number of funding
deals during 2014 to H1 2020
Others
13.3%
Patna
Bengaluru
6.7%
35.2%
Chennai
6.7% On The Basis Of Number
Of Funding Deals
Mumbai
8.6%
Pune Delhi NCR

14.3% 15.2%

Note: Based on disclosed funding till H1 2020 © Inc42 Media | not for distribution 32
Agritech Funding By Business Model
B2B Agritech Model Attracts Greater Investor Interest
Funding in agritech B2B models has grown at a CAGR of 96.5% from 2015 to H12020 with a
total of $229.1 Mn invested
250.0
200.0
150.0
100.0
50.0
0.0
2014 2015 2016 2017 2018 2019 2020
B2C B2B-B2C B2B

Agritech Startups In B2B2C Segment Grabbed The Most Number Of
Funding Deals Between 2014 And H12020
B2B2C funding in India grew at a CAGR of 24.2% in the past five years
100%
75%
50%
25%
0%
2014 2015 2016 2017 2018 2019 2020
B2C B2B-B2C B2B

Agritech Funding By Funding Stage
Despite Covid-19’s Impact, Late Stage Deals Dominated Agritech
Funding
Growth stage funding grew by 55.6% while late-stage deals contributed to over half of all
finding in 2020 so far
250.0
200.0
150.0
100.0
50.0
0.0
2014 2015 2016 2017 2018 2019 2020
Bridge Stage Seed Stage Growth Stage Late Stage

Note: Based on disclosed funding till H1 2020 © Inc42 Media | not for distribution 35
Seed Stage Startups Growing In Prominence In Terms Of
Funding Deals
Seed stage funding has grown in 2020 after a lackluster 2019 for the agritech sector
100.0%
75.0%
Funding Deals Share (In %)
50.0%
25.0%
0.0%
2014 2015 2016 2017 2018 2019 2020
Seed Stage Late Stage Growth Stage Bridge Stage

Competitive Landscape And Financials Of
Agritech Startups
Market Linkage Startups: A Landscape
Total Funding Presence
Company Estd. Year Employee Size
Raised (In $ Mn)
2015 100-250 19.6 Chennai, Coimbatore, Hyderabad and Bengaluru
2010 500-600 10.9 15 states
Chennai, Delhi, Gurugram, Pune, Mumbai, Bengaluru and

2015 2000-2100 198.5
Hyderabad
2010 100-200 1.9 Pune, Raipur
2014 N/A 3.0 Vashi, Navi Mumbai and Manjarwadi, Maharashtra
Mumbai, Bengaluru, Greater Noida, Sonipat, Ghaziabad, Noida,

2016 40-60 2.7
Faridabad, Delhi
Source: Company Websites, Industry Articles

Market Linkage Startups: Financials
Ecozen Stands As An Outlier With Its Profitability In FY19

WayCool dominated the market linkage market in terms of revenue with $27 Mn in FY19
WayCool
Origo Commodities
Startup Name
Ninjacart
Ecozen Solutions
FarmLink
Crofarm
-40.0 -20.0 0.0 20.0 40.0
Amount In $ Mn
Revenue, FY19 Expense, FY19

Note: Exchange rate, 1 INR= 0.014 USD
FaaS Startups: A Landscape
Raised (In $ Mn)
2013 150-200 11.3 Madhya Pradesh,Rajasthan, Uttar Pradesh
2012 100-250 2.5 Bangalore, Kolar, Hubli, Coimbatore and Trichy
Karnataka, Maharashtra, Gujarat, Rajasthan, and

2016 50-100 N/A
Madhya Pradesh
2016 50-100 N/A Punjab, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, and
Odisha

FaaS Startup: Financials
EM3 Agriservices Led India’s FaaS Market With $1.2 Mn As Revenue

In FY19
Profitability is still a big question for FaaS-based agritech models
EM3
GoldFarm
Startup Name
TRRINGO
Oxen Farm Solutions*
-4.0 -2.0 0.0 2.0
Amount In $ Mn
Total Revenue, FY19 Total Expense, FY19

Note: * FY18 numbers
Farm Inputs Startups: A Landscape
Raised (In $ Mn)
Maharashtra, Gujarat, Rajaasthan, UP, MP,

2012 350-400 41.6 Bihar, Karnataka, AP, Telangana and Chattisgarh
2012 100-150 19.3 Bihar, UP, Odisha
2016 50-100 4.5 Indore and Bangalore
2015 40-50 2.6 Karnataka, Andhra Pradesh, Telangana, and

Rajasthan
2015 11-50 0.4 Pune, Mumbai, Delhi, Bangalore, Calcutta,

Chennai, Hyderabad

Farm Inputs Startups: Financials
Agrostar Led The Agri Inputs Startups Field With $12.4 Mn Revenue
In FY19
The state of revenue in FY19 indicates the fledgling nature of this model in agritech
Agrostar
DeHaat
Gramophone
BigHaat
0.0 5.0 10.0 15.0 20.0

Agri-Fintech Startups: A Landscape
Raised (In $ Mn)
2017 11-50 5.4 Maharashtra, Karnataka
2012 101-250 5.0 Bihar
2015 1-10 N/A Uttar Pradesh

Use or reference to the trademark logo of Zuari Agro Chemicals Limited in the report was an error and the same has been rectified by
removing it.

Agri-Fintech Startups: Financials
Ergos Dominated Agri Financial Services Market With $2.7 Mn

Revenue in FY19
Prominent startups in agri financial services are close to achieving profitability
Ergos
Jai Kisan
Farmart
0.00 1.00 2.00 3.00
Amount In $ Mn

Precision Agriculture Startups: A Landscape
Raised (In $ Mn)
2010 101-250 12.6 Delhi, Bengaluru
2014 11-50 5.5 Tamil Nadu
2015 101-250 4.1 Punjab
2016 1-10 0.2 Ghaziabad, Noida and Greater Noida
2018 1-10 1.9 Maharashtra, Karnataka, Chhattisgarh, Madhya Pradesh,

Tamil Nadu, and Andhra Pradesh

Precision Agriculture Startups: Financials
Cropin Led Precision Agriculture Market With $1.7 Mn Revenue In FY19

KrishiHub managed to breakeven in FY19, but most other startups are loss-making
Cropin
KrishiHub
Aibono
Agnext
Fasal
0.0 1.0 2.0 3.0 4.0 5.0
Amount In $ Mn

Industry Analysis of
Agritech Market in India
SWOT Analysis Of Indian Agritech Market
Strengths Weaknesses Opportunities Threats
Strong base of software and Rising procurement cost of

High cost of equipment still Agri exports and
value-added technology agricultural inputs to drive
remains a major barrier to cross-border collaboration
companies that can apply investment in online
agritech adoption faces geopolitical threat as
expertise to solve agricultural marketplaces
countries become
problems Lack of digital literacy and increasingly protectionist
Agritech adoption to be
knowledge about agritech encouraged in the fight
Strong academic base at solutions Potential policies and laws
universities and agriculture against climate change
related to leasing farm lands
colleges Revenue volatility deters from aggrieved farmers or
Internet and smartphone
farmers from investing in land owners.
Availability of venture capital penetration to continue
technology growing among farmers
and private equity financing Continued hurdles in
Government schemes Perceived value of agritech technology adoption and
Agritech startups to continue
remains low among target advanced agritech solutions
Pushing farmers to adopt working with state
audience governments to improve
new-age technologies.
farmer prospects

What’s Driving Agritech Growth In India?
Need For Climate Resilience Post-Harvest Losses And Supply
Tech Chain Inefficiency
Every 1 degree Celsius rise in temperature results in a loss of 4-5 Post-harvest loss in India results in loss of $13 Bn in agricultural
Mn tonnes in wheat production.This can further result in a drop value which is primarily due to the poor transportation and
of 15%-18% in annual agriculture income and can even go up to storage facilities.More than 40% food gets wasted before
20%-25% for unirrigated areas. Weather information, crop reaching the consumer due to supply chain intermediaries.This
insurance and climate intelligence are therefore vital for creates an opportunity for the startups to streamline the supply
farmers of today and the future. chain by providing warehousing monitoring solutions, market
linkage and demand driven cold chains.Establishing market
linkages can lead to an increase of 8%-10% in farmers’ income.
Ease In Access To Farmer

Inputs Increased Internet Penetration
Agritech startups are providing farmers with better access to In Rural Area
agricultural inputs at their doorsteps (seeds, soil, etc.). Farming
The internet penetration is increasing in rural India with around
as a service (FaaS) companies are converting fixed cost to
57% of rural users accessing the internet for 15 to 30 minutes
variable cost by providing agri-equipment fleet on a
daily. With this, farmers are getting timely weather alerts along
pay-per-use basis.This makes it easy for the farmers to yield
with historical data about crop diseases,standard best
better outputs with affordable cost incurred.
practices and output forecast.

Issues & Challenges In Indian Agritech Market
Rigid Traditional Agri Models Lack Of Commercial Guidance

The major reasons for agritech startups not having gained In case of expansion for agritech startups, effective commercial guidance
scale despite some having existed for over half a decade is is required and this means working with existing middlemen and
the dependency on traditional business models in distributors, who often view startups as a threat. The years of experience
agriculture. The existing systems are rigid and difficult to accumulated by these existing players is what aids them in networking,
break into. There is also a presumption that agritech is finding resources and gaining expertise. However, this is not something
therefore not a viable business model, forcing investors to that agritech startups have yet managed to break through
shy away. This is fast changing in the light of the low
agricultural income in the past few years.
Climate Change
Despite the rise of climate resilience tech, climate change and the rising
Lack of Subject Matter Experts threat of more severe weather has foiled revenue plans for many farmers
in India. Floods, heat waves and drought are becoming increasingly
Subject matter experts that can balance the technology
common and coupled with a pandemic that has crippled farmland labour,
aspect with agriculture are also scarce in the Indian
the agriculture sector is going through a major upheaval. Climate change
market. Given the reticence of farmers in adopting
is a crucial factor that has a critical impact on all agri sectors — from
technology, even younger generations of farmers may be
financing to inputs to harvesting to distribution. Considering the large
tech-shy and are therefore not able to add to this
population it supports and the widespread reach of agriculture in India,
knowledge pool. There is a great need for education and
India is likely to be one of the most-affected countries from global warming
academic support as well as grants for research in agritech
and climate change. The Indian policymakers need to rapidly drive
domains which impact every Indian.
adoption of technology to help farmers withstand these unavoidable
changes as much as possible .

Which Tech Are Indian Farmers Using?
Digital Collars For Cattle Agricultural Drones

Grazing cow monitors or digital collars are letting farmers Drones have quickly become popular with farmers of all types due to their
track herds of livestock in real-time, ensuring they spend ease of availability for farm operations. Equipped with cameras and
enough time grazing in pastures. This helps ensure optimal sensors, drones are used to monitor crop health, assess soil conditions,
animal health and ensures beef and dairy products are track animals, record conditions for insurance purposes, and more. Most
accurately labeled as pasture-raised. importantly, data collected by agricultural drones is analysed and used to
provide farmers with recommendations to maximise the yield and
Another innovation in cattle farming are robotic milkers, efficiency of operations.
which help dairy farmers increase milk yield by as much as
20% and replace manual dairy processes.
Automated Weeding Hydroponic Farming

Historically, crop farmers have spent a huge amount of
Agricultural companies in several countries are converting shipping
time, energy, and (often) chemicals to rid their farms of
containers into mobile or static farms that run exclusively on water, with no
weeds. Now, smart farm vehicles can automatically find
soil required. IoT sensors track factors like humidity, CO2 levels,
and remove weeds without damaging crops. The machines
temperature, and water nutrient levels, and automated systems adjust
use cameras and machine vision technology to distinguish
environmental factors as necessary to maximise plant health and yield.
between crops and weeds and use precision tools in place
These precision farming techniques ensure the wastage of water and
of chemicals.
electricity is kept to an absolute minimum.

How Policies Are Shaping India’s Agritech Landscape
In recent times, farmers have become the centre of India’s attention and the massive protests around the country just prove how significant
an issue this is.
For agritech startups, this is a massive litmus test and a chance to work with the farmers on the very issues they are raising. If indeed, the
reform bills are officially notified, the farmers become a customer base and startups can already start working on the feedback being
received right now.
Farm Reform Bills

While India’s recent agriculture reform bills have attracted plenty of controversy and protests from farmers across the country, there’s
undoubtedly a ray of hope that the market would open up and increase agriculture income at the bottom of the chain i.e. at the farm level.
Even as the bills — the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, the Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm Services Bill and the Essential Commodities (Amendment) Bill — await the final go-ahead from the
President, there are questions about whether they will improve market access for farmers and whether it will tackle the problem of hoarding
of agri commodities by large farmers to drive up prices and finally, the contract farming, which risks turning agriculture into a gig economy
sector.
Besides the recent farm reform bills, the government has said it would allocate INR 2K Cr ($306.29 Mn) for computerisation of primary
agricultural credit societies (PACS) to ensure cooperatives adopt technology. In addition, there have been policies such as Pradhan Mantri
Fasal Bima Yojana (PMFBY) for insurance cover against crop failure.
In terms of working with startups, the Indian government has looked to launch various schemes for funding and incubation.

What India’s Farm Reform Bills Brings For
Farmers And Agritech Startups
Reform Description Expected Impact
Amendments to the Stock limits on the produce can only be Reduces risk in investments in infrastructure, thus encouraging
Essential Commodities imposed under exceptional circumstances funding for warehousing, post-harvest infrastructure, cold
Act (ECA) like natural calamities or famine (for cereals, chain storage and more
pulses, edible oils, oilseeds, potato and
onion). Increases threat of price manipulation and hoarding by private
players
The stock limit would not be applicable to
processors and other value chain
participants outside farms
Reforms In The Under the proposed reforms, over 146 Mn More incentives and lower overall cost for aggregators and
Farmers’ Produce farmers and cultivators would be allowed to agritech startups that procure produce from farmers.
Trade and Commerce sell their produce to any person or
(Promotion and organisation anywhere in the country. Farmers can expect better returns and transaction
Facilitation) Bill transparency
This would remove state-wise restrictions for
farmers of selling their produce only to state Increases risk of farmers becoming subcontractors for private
mandis, regulated by the Agricultural corporations
Product Market Committee (APMCs)
Replaces state-mandated limits with unregulated private
pricing

Reform Description Expected Impact
The Farmers The ordinance provides a legal basis for Better prices and returns for the farmers with higher
(Empowerment farmers to enter into contract farming transparency on the contracts and terms
and Protection) practice
Agreement on Better safeguards for farmers due to formalized contracts and
Price Assurance A farmer can enter into a written agreement pricing arrangements
and Farm Services with a buyer which specifies terms and
Ordinance, 2020 conditions of quality, grade, time of supply Risks turning agriculture into a gig economy by turning over
price and extension service. complete market leverage to private players
The price of the produce has to be a part of Risks increasing dependency of farmers on a particular seed or
the agreement. For any additional amount varietal and limits flexibility in operations
over the agreed price, the prevailing price in
APMC will be the benchmark

Agri Financial Policy
This startup scheme provides a limited, one-time, non-recurring financial assistance, up to a maximum of INR 25 Lakh.
Incubation Policies
Aspire envisions setting up a network of technology centers, incubation centers and also to promote startups for
innovation and entrepreneurship in rural and agriculture-based industry.Under this scheme:
80 Livelihood business incubators (2014-2016) to be set up by NSIC, KVIC or Coir Board or any other Institution/agency of
GoI/State Govt. on its own or by any of the agency/Scheme for promotion of Innovation, Entrepreneurship and
Agro-Industry organisation of the M/o MSME
One-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure or an amount up to Rs.100
lakhs whichever is less to be provided
It is a food & agribusiness accelerator organised by NAARM, a-IDEA and IIM-A, CIIE in partnership with Caspian Impact
Investment and supported by DST.The program focuses on catalyzing scale-up stage Food & Agribusiness startups
through rigorous mentoring, industry networking and Investor pitching.

Private-Public Partnerships
A procurement policy named ‘Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA), under which states can decide the
compensation scheme and can also partner with private agencies to ensure fair prices for farmers in the country.
It was launched by the Ministry of Agriculture, Government of India in April 2016. The eNAM is linked with 785 markets
(APMCs) in 17 states and 2 union territories, with over 45 lakh farmer membership in 17 states. The market is helping
traders and exporters in procuring quality products in bulk, at one place and ensuring transparent financial
transactions.On this platform, farmers can opt to trade directly on their own through the mobile app or through
registered commission agents.

State-Specific Agritech Initiatives In India
Punjab
Uttar Pradesh
Government launched pilot project with
Bill and Melinda Gates Foundation and Tata Trusts to
an Israeli company to provide technical
set up Indian Agritech Incubation Network at IIT-Kanpur
knowhow to farmers
in collaboration with the state government
Haryana
Government decided to integrate FPO’s
packhouses on eNAM platform
Madhya Pradesh
Maharashtra Set up ICISAT, a UN organization as
Launched agritech scheme for digitally nodal agency for developing
tracking agriculture management climate-smart villages.
Project Mahadevh: rainfall recording and Telangana
analysis Launched an agri open data portal
Karnataka
Partnered with IBM for tomato price Tamil Nadu
forecasting using AI,ML technologies. Set Transferring evolved technologies and
up an agritech fund of us$2.5 Mn using best practices through ICT tools
AI in 10 districts from seven states

Rise Of Hydroponics
In Inda
With the urban population in India at 377 Mn and estimated to cross 400 Mn by 2050, startups are keener than ever to cater to the growing
urban food demand and this means investing in new-age business models including hydroponics.
Hydroponics is a technique of growing plants in low-soil or soilless environments by using mineral nutrient solutions in water solvents.
Why Indian Hydroponics Startups Are Growing In Stature?

Hydroponic plants grow 50% faster than in traditional farming techniques and can quickly cater to urban demand.
Perennial production is another major advantage for hydronics startups in India, given the regional climatic and geographical
variances
Soil-less and water-less farming systems preserve precious environmental resources and natural soil quality for longer. This has
fuelled the rise of eco-conscious hydroponic startups
Low space requirements for hydroponic farming mean startups can expand faster within cities rather than spending more on
last-mile distribution logistics
Hydroponics farm produce is less exposed to environmental adulterants and other contaminants as transit time is lower and
there are typically no insecticides used.

India’s Hydroponics Startup Landscape
Startup Name Establishment Year City Type Of Crop Produced
2019 Chennai Italian basil, carom (ajwain), mint, spinach, lettuce and
other leafy greens and herbs.
2016 Goa Leafy greens such as lettuce, cherry tomatoes, bell peppers
and basil.
2015 Bengaluru Herbs, salad greens and micro-greens
2015 Hyderabad Leafy greens and other vegetables
2014 Chennai 16 crop varieties
2018 Cochin Tomato, cabbage, capsicum, cucumber, beans, tapioca,

cauliflower, carrots, radish, brinjal, ladies finger, spinach,
lettuce, and coriander
2016 Himachal Pradesh Fresh vegetables and leafy greens
2016 Chandigarh Leafy greens, basil, spinach, coriander, tomatoes,

cucumbers, vines

Regional Concentration Of Hydroponic Farms
Delhi
Jaipur
Gujarat
Hyderabad
Bengaluru
Chennai

Challenges For Hydroponics Startups
Lack Of Variety Of Produce: Hydroponics often require a wider light spectrum with a longer growth period due to the high light
demands of fruiting plants. Therefore, hydroponics technology is currently mostly limited to leafy greens due to costs.Therefore,
hydroponics can in no way be seen as a complete replacement for traditional farming methods.
High Price For The Consumers: Hydroponic farm produce selling price is higher than the soil grown produce due to the high capex
and opex involved in it. In the case of commodity crops like wheat and rice, the price will be four times more than soil-grown
crops.Although producing greens costs marginally more than traditional crops, about 2-3%.
High Level Skills & Knowledge Required: The system which is being used in hydroponics, runs on many types of equipment which
require expertise for the use of devices, what plants you can grow and how they will survive and flourish in a soilless environment.
If there is any mistake in setting up the systems , it will affect plant growth or end up the whole progress. It is quite difficult to provide
skills and training to all types of farmers. If the farmers are willing to work in this area, and have less knowledge about the system,
they need to hire a horticulturist or skilled staff and to hire a staff at an affordable salary is difficult.
Time & Commitment: Plants grown in soil can be left on its own for days and weeks, and they can survive in a short time. Nature
and soils will help in regulating things if something is not balancing. But it's not the same in hydroponics. Plants will die more quickly,
if you will not take proper care of them because plants are dependent for their survival.

Agritech Trends For
2021 & Beyond
FaaS Boom Imminent
Startups operating in the Farming-as-a-Service (FaaS) sub-segment include the likes of EM3 Agri Services, BigHaat and
Krishify, which have been addressing the inefficiencies across the supply chain, including lack of farm mechanisation,
crop advisory and access to markets. They also bring different stakeholders, including small and large farmers, local
representatives, vendors and agricultural experts, under one umbrella so that unorganised operations could be
streamlined and the business of farming would be profitable.
Given the degree of uncertainty around marketing and commodity rates, FaaS has been a boon to farmers and farmland
owners who are looking to establish fixed costs and goals upfront.
Rise Of Data-Led Models And Farm Analytics

Agritech startups in India are exploring solutions around robotics, big data, smart equipment, IoT sensors and farm
management software, as well as new-age agricultural practices like indoor or controlled-environment farming. All of
this is pinned on data and farm analytics, which is a rising field in India. With agricultural tools also getting smarter, data
transparency and structure is bringing about innovation in farm production, input procurement, precision farming and
even hydroponics.
Blockchain Models In Indian Farms

Even though blockchain technology has gained traction in the financial and enterprise tech sector, it has a vast scope
within agritech applications particularly for supply chain transparency and certification of produce. Blockchain
applications are expected to increase traceability in the supply chain, which will help Indian farmers export reliably given
the government’s recent push in this direction. Startups such as CropData are providing blockchain-based marketplaces
to improve transparency and promote fair pricing.
Rise In Urban Farming
With urban farms and hydroponic farms, food is now being grown close to where the demand is, and the traditional
farmland can be reutilised for other demand to balance the pressure on farmers.
What Gives India’s Urban Farming An Edge

Zero agricultural runoff
Space & water efficiency
Grows all year around

High quality produce
Best use of tech such as cloud based data analytics

Faster yield
Faster distribution Encourages commoners to take up farming
Consistent pricing through the year Reduces carbon footprint

Analyst
Recommendations
Analyst Recommendations
Agritech growth can be accelerated by building a robust ecosystem of multiple stakeholders including startups, technology providers,
agricultural enterprises, research institutions and the government. This will help drive the implementation of cross-industry technologies
and applications such as IoT, data-driven farming, chatbots, drone technology and precision agriculture to increase farm output and
overall productivity levels, while maintaining cost efficiency.
Agritech Startups Need To Prove Scalability

Startups need to demonstrate scalability and higher unit economics in their bid to attract investors, as well as create a
market network, similar to how digital payments penetration was achieved.
The Push For Digital Literacy Among Farmers

Digital literacy within small and marginal farmers is lacking, which hinders adoption of agritech startup products and
services. Companies and institutional retailers need to incentivize farmers to adopt technology, which will help in
habit-formation and create a digital workflow that farmers can familiarise themselves with.
Bigger Technology And R&D Investments

A strong research and development base for technology innovations is essential to build the foundational blocks of agritech
development. In the US, for instance, farmers have leveraged the strong tech capabilities to create farm technologies.
Farmers in the US have moved towards farm consolidation to realise the benefits of technology adoption at scale, even
though the US market is heavily tilted towards corporation-run farms.

Cross-Border Collaboration And Innovation
One of the ways to close the innovation and technology gaps in agritech is by leveraging collaborations with other nations
to drive innovation. India and Brazil recently entered into a partnership promoting the exchange of agricultural technologies
and expertise between both the countries.
Creating Favourable Regulatory Environment

In conjunction with these strategies, government support is essential to create a favorable environment for agritech
startups. This will ensure increased availability and accessibility of new-age technology to the farming community and
promote agricultural research to build a strong agritech ecosystem.

Methodology
The report presents the study of datasets related to the agritech market in India, which implies all types of segments including faas, precision
agriculture, farm inputs, market linkage and other segments have been covered. The datasets are collected from both primary and
secondary sources. The market size is calculated by using a bottom-to-top approach for the major players, and estimating their share to
arrive at the overall market.
The report presents the study of datasets related to the agritech market in India, which means any company offering agritech solutions has
been included.
Moreover, investment in agritech startups has been reported based on disclosed investments till December 26, 2019. The default base year
for calculating growth rate (CAGR %) is FY2019, unless mentioned otherwise.
The segregation of funding stages in this report is done on the following basis — seed stage (before pre series A), bridge (transition funding
rounds like Pre-Series A, B, C), growth stage (Series A and B) and late stage (Series C and beyond).

Glossary
Market Linkage: It includes platforms which connect farm output with the customer, it is one of the most easy ways to take farmers products
directly to the end customer. Also, tech based platforms helping in supply chain management are considered in it
Precision Agriculture & Automation: Digital / Precision Agriculture based businesses offers innovative technology solutions for increasing
crop productivity and farming process efficiency
Farm Inputs: Providing farmers better access to agricultural inputs at their doorsteps, it helps farmers to understand the best input product
to increase the yield and productivity.
Farming-as-a-Service (FaaS): Farming as a Service offers affordable technology solutions to farmers for efficient farming by converting
fixed cost to variable cost
Financing: Farmers in India struggle to get finance but agritech based financing startups helps such underserved community of farmers to
get loans quickly
Others: Others includes quality management & traceability in order to compute market potential. While in funding data, others includes
sub-sectors such as Biotechnology, Farm automation, farm infrastructure, hydroponics and others

Bibliography
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Market Linkage

Contents Scope Of The Report

Agriculture In India: Overview 06 Precision Agriculture

The State Of Agriculture In India

India’s Agritech Market Size Which Tech Indian Farmers Using? 51

Prominent Agritech Models Rise Of Hydroponics in India 58

The State Of Indian Agritech 2020 Report Will Cover

© Inc42 Media | not for distribution 3

$276.3 Bn 56% $467 Mn 1,000+

Estimated GVA By Contribution Of Farming Funding Raised By Number Of Agritech

$204 Mn $24.1 Bn ~1%

Agritech Tapped Agritech Market Agritech Penetration

© Inc42 Media | not for distribution 4

© Inc42 Media | not for distribution 5

According to Indian Brand Equity Foundation (IBEF),

Growth in the GVA in agriculture and allied sectors

FY16 FY17 FY18 FY19 FY20

© Inc42 Media | not for distribution 7

60% India is the largest producer of spices, pulses, milk,

It is the second largest producer of wheat, rice, fruits,

Agriculture has a contribution of 12% to India’s total

Source: Press Information Bureau, Government of India

01 Inadequate And Unstructured Data

02 Lack Of Access To High Quality Inputs

03 Inefficient Supply Chain

04 Lack of Employment Rationalisation

05 High Cost of Equipment

Source: Inc42 Plus

© Inc42 Media | not for distribution 10

Lack of Employment Rationalisation: Agriculture sector employs 43% of India’s workforce,

© Inc42 Media | not for distribution 11

India Agritech Tapped Addressable Agritech Agritech Penetration In

Highest Potential Funding Raised By

© Inc42 Media | not for distribution 13

Current market size of agritech

2017 2018 2019 2020

2013 2014 2015 2016

2009 2010 2011 2012

Correction Note | 12:20, January 19, 2021

Source: Inc42 Plus

Biotechnology: Startups driving

Quality Management & Traceability: Post-harvest produce handling, quality

Precision Agriculture 3.4

Farm Inputs 1.7

Source: EY, Inc42 Analysis

© Inc42 Media | not for distribution 19

Distributor Dealer Sub-Dealer Farmer

Typical Agritech Model For Farm Inputs

Agritech Player Sub-Dealer Farmer

Source: Inc42 Plus, EY

Pays 5-8% commission for Collection and 20% for lead

Farmer Retail Collection Center Testing Lab Agritech Player

Pays INR 600 to INR 800 per test

Send Inputs on Crop & Farm Inputs Selection

Transport Charges Trade Margin Wastage

Source: Inc42 Plus, EY Report

Source: Inc42 Plus, EY Report

© Inc42 Media | not for distribution 24

Send request for rental equipment to agritech player

Pays money to agritech player for the services

Farmer Agritech Player

Source: Inc42 Plus, EY Report

© Inc42 Media | not for distribution 25

Crop Loans ( Income from the net