8 Indian Unicorns Will Be Created In This Exciting, Untapped Sector In Next 4 Years!


Shreya Bose

Shreya Bose

Dec 17, 2022


As per a recent report the agritech sector is expected to create around 8-10 unicorns in the next five years.

This is thanks to continued investor interest, even as the start-up ecosystem struggles through a funding winter.

8 Indian Unicorns Will Be Created In This Exciting, Untapped Sector In Next 4 Years!

Promising future for Indian agritech

Till date, the Indian agritech sector has not minted any unicorn.

A report from investment banking firm Avendus Capital says that agritech start-ups are also anticipated to grow at a compound annual growth rate (CAGR) of close to 50 percent.

The market could hit $34 billion by 2027.

Pankaj Naik, executive director, and co-head of Digital and Technology Investment Banking, Avendus Capital said, “Agriculture, which contributes $530 billion to India’s GDP, sees less than 1 percent tech penetration. 

The unique innovations in production, supply-chain/ market linkage, quality assessment, and digital traceability have the potential to become ‘from India to the world solutions.”

IPOs

IPO timelines for many agritech ventures are three to five years away which can be met with the precursor of active investments.

“Going forward, we expect to see higher deal activity led by growth funds followed by IPOs in the latter half of the decade,” Naik added.

Indian agritech start-ups raised $296 million across 27 private equity and venture capital deals in the first half of this financial year.

This is almost double the $157 million through 23 deals during the same period in FY22.

Racing ahead of other sectors

Agritech continues to attract investors even as other segments grapple with a funding winter.

These investors are optimistic about the nascent sector’s potential to grow on rising demand for quality food, supported by macro tailwinds like climate change and food security concerns.

The boost in growth is driven by four key factors:

  • Increasing digital penetration across India
  • Covid-led supply chain disruption
  • Growing consumer interest for quality produce
  • Increasing private equity and venture capital interest

Agritech revolution

Since 2010, almost $3 billion of funding has gone into backing more than 1,500 agritech companies in India, compared to the $45 billion raised globally by such firms, says the report.

Varun Gupta, executive director, Digital and Technology Investment Banking of Avendus Capital said, “India is standing at the cusp of an agritech revolution as we see the confluence of rural India warming up to increased usage of technology platforms. 

Indian agritechs have been experimenting and pivoting over the last few years and have now identified scalable, capital-efficient business models with a strong path to profitability.”

Prominent names

The report takes into account start-ups building across the value chain in pre-production, production, and post-production segments

This includes companies like DeHaat, FarMart, BharatAgri, Sammunnati, Otipy, Waycool, and so on.


Shreya Bose
Shreya Bose
  • 95 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Startup
Nov. 17, 2022

Amazon India Likely To Fire Hundreds Of Indian Employees; 10,000+ Employees Will Be Fired

Amazon India is the latest enterprise to be hit by mass layoffs in view of an impending recession and needing to cut costs. Earlier, other prominent outlets reported that it would be firing as many as 10,000 employees. Contents1 Some sections more likely to be hit2 Twitter, Meta as examples3 360 degree shift in just […]

Startup
Sep. 28, 2022

Indian Startups Receive Rs 7900 Crore VC Funding In August, 2022: VC Fundings Up By 9.7%

Data and analytics company GlobalData said on Thursday that despite the funding winter, 128 Indian startups have raised over USD 995 million (around Rs 8,000 crore) venture capital funding in August. Contents1 Performing better than US, UK2 1,239 deals in 7 months3 Top sectors, cities receiving funding4 Notable fundraisings Performing better than US, UK This […]

Startup
Jul. 13, 2022

India’s 1st Ever Bank Branch For Startups Launched By SBI In This City!

SBI has signed an agreement with the Karnataka Digital Economy Mission (KDEM) to start the country’s first dedicated bank branch which would provide credit facility for startups.  The facility will be called the ‘SBI Startup Hub’ branch, which is dedicated to provide cluster seed funds to startups. Contents1 Enhancing startup ecosystem2 Location3 Scheme for small […]

Startup
Jul. 10, 2022

Startup Funding In India Reduced By 33% Due To Global Slowdown; Only $6.9 Billion Invested In 90 Days

Total funding raised by Indian startups in the June quarter fell 33 percent sequentially to $6.9 billion. It was not just lower than the $10.3 billion logged between January and March 2022, but also saw a decline compared to the same quarter of the previous year ($10.1 billion in Q2 of 2021). Contents1 Funding winter2 […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online