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<\/figure>\n\n\n\nPromising future for Indian agritech<\/strong><\/h2>\n\n\n\nTill date, the Indian agritech sector has not minted any unicorn.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The market could hit $34 billion by 2027.<\/p>\n\n\n\n
Pankaj Naik, executive director, and co-head of Digital and Technology Investment Banking, Avendus Capital said, \u201cAgriculture, which contributes $530 billion to India\u2019s GDP, sees less than 1 percent tech penetration. <\/p>\n\n\n\n
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.\u201d<\/p>\n\n\n\n
IPOs<\/strong><\/h2>\n\n\n\nIPO timelines for many agritech ventures are three to five years away which can be met with the precursor of active investments.<\/p>\n\n\n\n
\u201cGoing forward, we expect to see higher deal activity led by growth funds followed by IPOs in the latter half of the decade,\u201d Naik added.<\/p>\n\n\n\n
Indian agritech start-ups raised $296 million across 27 private equity and venture capital deals in the first half of this financial year.<\/p>\n\n\n\n
This is almost double the $157 million through 23 deals during the same period in FY22.<\/p>\n\n\n\n
Racing ahead of other sectors<\/strong><\/h2>\n\n\n\nAgritech continues to attract investors even as other segments grapple with a funding winter.<\/p>\n\n\n\n
These investors are optimistic about the nascent sector\u2019s potential to grow on rising demand for quality food, supported by macro tailwinds like climate change and food security concerns.<\/p>\n\n\n\n
The boost in growth is driven by four key factors:<\/p>\n\n\n\n
IPO timelines for many agritech ventures are three to five years away which can be met with the precursor of active investments.<\/p>\n\n\n\n
\u201cGoing forward, we expect to see higher deal activity led by growth funds followed by IPOs in the latter half of the decade,\u201d Naik added.<\/p>\n\n\n\n
Indian agritech start-ups raised $296 million across 27 private equity and venture capital deals in the first half of this financial year.<\/p>\n\n\n\n
This is almost double the $157 million through 23 deals during the same period in FY22.<\/p>\n\n\n\n