Tech: Indian agriculture technology can grow to $24.1 billion in more than 4 years

Tech: Indian agriculture technology can grow to $24.1 billion in more than 4 years


Tech: Indian agriculture technology can grow to $24.1 billion in more than 4 years
India’s agri-tech sector is at under 1% of its market potential today

The Indian agriculture technology sector has the potential to grow manifold to $24.1 billion in the next five years, according to a new report. With a turnover of $204 million, India’s agri-tech sector is at under 1% of its market potential today.

A big chunk of the gains will likely be made by companies addressing supply chain and financial services solutions, driven by the availability of affordable high-speed internet and maturing of India’s digital content ecosystem, the EY report on India’s agri-tech potential said. The report has also forecast consolidation in the agri-tech space along with startups expanding horizontally to service the end-to-end needs of farmers within the next few years.

“Attractive market opportunity, nascency in investment funding and minuscule penetration by incumbent agritech players offer an opportunity for established players such as institutional retailers, ecommerce players and food processing companies to create impact at scale,” said Ankur Pahwa, partner and national leader - e-commercee and consumer internet at EY India.

EY estimates that 5 key classes of agritech will management the lion’s share of the sector’s turnover, with the agritech marketplace for supplying farm inputs being as large as $1.7 billion by 2025, the marketplace for precision agriculture and farm administration rising to $3.4 billion in that point, whereas the marketplace for high quality administration and traceability might be value $3 billion.

The marketplace for tech enabled provide chain and output market linkages would be the largest phase, which might be value $12 billion by 2025, in response to EY. The second largest phase within the general agritech market might be for monetary companies, with a market potential of $4.1 billion within the subsequent 5 years.

Funding within the sector to this point can also be skewed in direction of startups serving these 5 sectors, with a bulk of the cash being pumped into startups constructing agri provide chains and market linkages.

Ninjacart, Waycool and Jumbotail alone have raised $252 million in funding, out of $301 million in whole funding that has gone into startups on this phase. In response to the report, there are over 500 agritech startups within the nation, with 57 of them servicing the 5 excessive classes and have raised a mixed whole of $532 million until April 2020.

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