How is The Agritech Industry Positioned in India?
India
is traditionally an agrarian economy. Agriculture accounts for ~% of the total
employment in India and contributes ~% of the country’s GDP. In FY’2020, the
agri products market in India on the basis of volume was valued at ~ Million
tones with the Gross Value Added by the Sector amounting to ~ INR Lakh Crore in
FY’2020. The market growth is dependent on various factors such as climatic
conditions, productivity of the crop, weed management, pest and disease
management, which often lead to fluctuation and volatility in the industry.
Rice and wheat are the major crops sown in India accounting for ~% and ~% of
the cultivated land in India. Crop yield in India however lags behind its peers
including US, China and Brazil in most Foodgrains. Low yield results in low
incomes for the farmers.
These pain
points of farmers resulted in the emergence of agritech startups in India,
aiming to solve the inefficiencies along the agribusiness value chain. By the
end of 2020, there were over 600 agritech startups in India, operating with
different models in different segments. The sector has been witnessing
intensive funding from venture capital firms and even international investors.
In 2020, the total investment in the sector crossed USD ~ million, despite the
ongoing Covid-19 pandemic. On the basis of revenue, the agritech industry was
valued at ~ INR Crore in FY’2020, witnessing a growth rate of ~% from
FY’2019-FY’2020.
India
Agritech Market Segmentations
Input Market Linkage &
Farming as a Service (FaaS) Segment
The segment is the second largest contributor to the revenue of the overall agritech industry in India. The adoption of input market linkage solutions is fast growing in the country. Many players such as Agrostar and Bighaat offer missed call based service for farmers ordering inputs & equipments along with cash on delivery service. On the other hand, some players are offering services such as on-demand machinery rental, field leveling, and pesticide spraying as a part of farming as a service.
Supply Chain, Post Harvest
Management and Output Market Linkage Segment
The segment witnessed
maximum growth amongst all the segments in FY’2020. Players in the segment are
involved in collection, processing, storage, logistics and distribution of agri
produce from the farmers to the end customers or retailers. Inadequate rural
infrastructure including pack houses at farm gates, paved roads, etc and lack of
traceability along the supply chain has necessitated the intervention of
agritech players in the segment.
The
segment is currently in a nascent stage in India. Lack of knowledge about scientific farming methods and techniques
among famers in India led to the entry of agritech startups offering precision
farming solutions and advisory. These players collect farm specific data about
soil, weather conditions, humidity, pests etc using IoT sensors or geospatial
technology and combine analytical capabilities to provide timely insights to
the farmers. Some players are also offering quality assessment hardware and
farm management solutions.
Agri Fintech Segment
The segment is currently in nascent
stage in India. The segment comprises of agritech startups offering solutions
such as credit, insurance, warehouse receipt financing, trade financing, etc.
The segment is still in a nascent stage and has witnessed the entry of players
majorly in the last 5-6 years. Lack of access to organized credit, collateral
and formal documentation is the biggest challenge faced by farmers that are
often in need to small ticket sized loans. Agritech players are leveraging
technologies such as geo tagging of farm lands and remote crop monitoring to
build risk profiles of farmers and ascertain their credit worthiness.
Competition
Scenario in India Agritech Market
Input Market Linkage and Farming as a
Service Segment
The
competition in the segment is concentrated with the top 5 players accounting
for ~% of the industry’s revenue. Startups operating in the segment compete on
the basis of parameters such as number of farmers catered, geographical
presence, typed of inputs, number of brand partnerships, etc. Major players
operational in the segment are Agrostar, Dehaat, EM3 Agriservices, Gold Farm,
Gramophone, etc.
Supply Chain, Post Harvest Management
and Output Market Linkage Segment
The
competition in the segment is concentrated with the top 5 players accounting
for ~% of the industry’s revenue. Agritech startups operating in the segment
compete on the basis of parameters such as number of buyers, partnerships, geographical
presence, number of farmers/suppliers, number of fulfillment centers, etc.
Major players operational in the segment are Samunnati Agro, Ninjacart,
Waycool, Arya Collateral, Dehaat & many more.
Precision Farming, Advisory and
Analytics Segment
The
competition in the segment is fragmented with the top 5 players accounting for
~% of the industry’s revenue. Agritech startups operating in the segment
compete on the basis of factors such as proprietary hardware/technologies,
number of customers/farmers, farmer on-boarding process, geographical presence,
etc. Major players operational in the segment are Cropin, Intello Labs, Satsure
Analytics, FarmERP, Agnext & many more.
Agri Fintech Segment
The
competition in the segment is moderately concentrated with the top 3 players
accounting for ~% of the industry’s revenue. Agritech startups operating in the
segment compete on the basis of parameters such as number of partner banks
& NBFCs, interest charged, geographical presence, channel partner network,
number of customers, etc. Major players operational in the segment are
Samunnati Financial Intermediation Services, Origo Finance, Ergos, Gramcover,
Aryadhan & more.
India
Agritech Market Future Outlook and Projections
The agritech market in India is expected to reach
at a value of INR ~ Crore by FY’2025 registering a CAGR of ~% during the
forecast period of FY’2020-FY’2025. The outbreak of Covid-19 pandemic acted as
a catalyst and stimulated the adoption of agritech solutions among farmers and
other stakeholders. Other factors as growing rural internet penetration, higher
mobile connectivity, increased focus on rural financial inclusion, etc are
expected to drive the growth of the industry. Many more startups are expected
to enter the industry in the coming years to harness the industry’s untapped
potential.
India Agritech Market (Basis Revenue):-
India Agritech Market Segmentations
By Nature of Services,
FY’2019-FY’2020 (On the basis of Revenue)
Input Market Linkage & Farming as a Service (FaaS)
Supply Chain, Post Harvest Management & Output
Market Linkage
Precision Farming, Advisory & Analytics
Agri Fintech
By Region (On the
basis of No. of Agritech Startups)
Karnataka
Maharashtra
Delhi NCR
Haryana
Tamil Nadu
Telangana
Gujarat
Others
Agritech
Startups Covered:-
Input
Market Linkage & Farming as a Service (FaaS)
Agrostar
Dehaat
Gramophone
EM3
Agriservices
Gold
Farm
Bighaat
Thanos
Technologies
Supply
Chain, Post Harvest Management & Output Market Linkage
Samunnati
Agro
Ninjacart
Waycool
Arya
Collateral
Dehaat
Farmlink
Crofarm
Agrowave
Precision
Farming, Advisory & Analytics
Cropin
Satsure
Analytics
Intello
Labs
FarmERP
AgNext
BharatAgri
Yuktix
Technologies
Fasal
Agricx
Agri
Fintech
Samunnati
Financial Intermediation & Services
Origo
Finance
Ergos
Gramcover
Aryadhan
Financial Solutions
Farmart
Jai
Kisan
Poultry
& Dairy Tech
Milk
Mantra
Country
Delight
Stellapps
Happy
Cow Dairy
Eggoz
Mr.
Milkman
Mooofarm
Key
Target Audience:-
Agritech
Companies
Input
Manufacturing Companies
Venture
Capital Firms
Independent
Investors
Industry
Associations
Rural
Banks & NBFCs
Government
and Regulatory Bodies
Time
Period Captured in the Report:-
Historical Period: FY’2019-FY’2020
Forecast
Period: FY’2021-FY’2025
For more information on the research report, refer to below
link:-
Related Reports:-
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Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
