The outbreak of the Corona Virus pandemic in early 2020 led to massive disruptions in various sectors and completely transformed the way industries used to function. As of April 27, 2021, the number of cases across the globe crossed 148 million and more than 3.12 million people lost their lives. India is one of the most badly hit nations due to the virus. The country is currently burdened under a deadly second wave, with average daily cases crossing 3 lakhs since April 22. The unprecedented rise in infections has left the country grappling, both economically as well as socially.
Agriculture
continues to be a prominent sector for the Indian economy as it is the primary
source of livelihood for over 50% of the nation’s population and contributes
~19% of the country’s GDP. In FY’2020, the total production of agri products in
India reached 347.4 million tones with the total gross value addition amounting
to over INR 11 lakh crores. Rice and wheat continue to be the most widely
cultivated crops across the country. Agriculture
products also account for ~11-12% of India’s overall exports annually.
Impact on Covid on the Agriculture Industry: Following the trajectory of most of the
industries in India, Indian agriculture sector was hit by supply chain
disruptions on the onset of the pandemic, despite food being an essential
commodity. The lockdown delayed the harvest of the Rabi crop due to labour and
machinery scarcity as well as restrictions on transport and movement. Despite
favorable winter conditions and above normal output, the sudden disruption in
supply chain resulted in losses on account of damaged crop and low
profitability. Regardless, agriculture was the only sector to have registered a
positive growth rate of 3.4% in the first quarter of FY’2021.
Impact on Investment Activity in Agritech Sector: The investment in the agritech sector continued
to spur despite the ongoing pandemic in 2020. Approximately 133 deals took
place in the overall agritech space during 2020. Venture Capitalist, Omnivore,
invested about ₹130 crores in 11 deals during the year as compared to ₹47 crores
in seven firms, during 2019. Waycool, Ninjacart, Arya Collateral, Dehaat, Bijak,
IntelloLabs, Clover Ventures, Cropin, Samunnati, Gramophone and Ergos were some
of the major startups that received funding in 2020. The total investment in
the agritech industry in 2020 crossed USD 300 million, growing at double digit
growth rate of ~22% from 2019.
Impact on Agritech Demand and Future Outlook: Amidst supply chain disruptions most agritech
startups witnessed a spike in demand for services and adoption of tech
solutions among farmers. Input access platform, Agrostar, saw the revenue
generated through its app triple within 3 months post the Covid-19 outbreak.
DeHaat’s agronomy advisory services segment saw a ~3X spike for digital
advisory services and a ~3.5X jump in overall demand. Fresh produce supply
chain startup, Ninjacart, saw a ~20% rise in their app-based ordering patterns
and the company’s operations returned to pre-Covid levels in December 2020.
Cropin witnessed a ~128% spike in viable leads, particularly for assisted
traceability and remote monitoring solutions. The startup also saw a ~37% increase
in deals closed online.
The
covid-19 outbreak is acting as a catalyst and has got the momentum rolling for
the growth of agritech in India. Tailwinds such as high level of investments,
increasing rural internet penetration and financial literacy, growth in mobile
connectivity are expected to stimulate the sector’s growth in the coming years.
Basis all these factors, the agritech market in India is expected to grow at a
CAGR of ~32.0% on the basis of revenue over the period FY’2020-FY’2025.
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
Key Topics Covered in the Report:-
Agriculture Overview, Agri Exports from India
& Productivity Scenario
Demand Analysis, Farmers’ Scenario & Pain
Points of Farmers
Need Analysis of Entities in Agribusiness Value
Chain
Overview and Genesis of India Agritech Industry
Agritech Operating Model & Services Offered
Trends and Growth Drivers in the Industry and
Challenges Faced
India Agritech Market Size and Segmentations,
FY’2019-FY’2020
Investment Analysis of Agritech Industry
Government Initiatives, Agri Reform Laws 2020
& Public Private Partnerships
Industry Porter’s Five Forces Analysis
Cross Comparisons between Agritech Players in
Different Segments
Future Market Size and Segmentations,
FY’2020-FY’2025F
Covid-19 Impact on the Industry, Future Trends
& the Way Forward
Analyst’s Recommendations
For more information on the research report,
refer to below link:-
Related
Reports:-
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