Agriculture is the backbone of India’s economy, providing livelihoods to more than half of the country’s population. The sector contributes to about 17% of India’s GDP and is the primary source of food for the country’s growing population. However, the sector is plagued with several challenges – poor market linkages, low productivity, small landholdings, lack of access to financial services etc – that prevent it from achieving its full potential.
A combination of large markets and deep problems are often breeding grounds for new opportunities. Over the last decade many Agritech startups have leveraged technology and data to address key challenges faced by Indian agriculture. Today, there are 1000+ startups that have cumulatively raised $3B+ in funding and are estimated to drive $4B+ in GMV that is likely to grow 8x over the next 5 years.1
At Stellaris, we are quite excited about the promise of agritech in the coming years. So far, we have seen startups solving for grassroots problems like procurement, market linkages, productivity, financial access and many other relevant problems for farmers as well as various stakeholders across the agri value chain. These startups have set up a strong platform to organize Indian agriculture and unlock its much bigger potential. Going forward, we believe that the new set of startups will emerge in Industrial farming, B2B export platforms and managed marketplaces for processors.
As an Agri enthusiast, we have drawn a landscape of promising Agritech startups in India.