As per the reports by Omnivore and AgFunder, funding for tech startups in the food and agriculture industries increased by more than twice over the previous fiscal year to $4.6 billion. This is driven by increased interest in the e-grocery and restaurant marketplace.
AgFunder and Omnivore, being Indian VC firms, fund entrepreneurs to build the future of food systems and agriculture.
According to ‘India AgriFoodTech Investment Report 2022’, “Total investment in agrifood tech startups for India’s fiscal year (FY) 2022 stood at $4.6 billion, up 119% from FY2021. Deal volume also increased to 234 in FY2022 as compared to 189 deals in FY2021,”
The report further stated that overall funding for the agrifood tech sector is being increased by the downstream investments. From $1.77 bn in FY-2021, downstream startups jumped to $3.8 bn in FY-2022, with an increase of 115%. Among all downstream categories, the eGrocery and Restaurant marketplace received most of the funds with $1.4 billion and $1.9 billion respectively. Out of the entire funding in the agrifood tech sector, 66% of the funds have been raised solely by the eGrocery and restaurant marketplace.
Michael Dean (Founding Partner, AgFunder) said, “India has always been a leading agrifood tech ecosystem…but to see investment levels surpass all other countries in the Asia-Pacific region and compete on the global stage is indicative of the impressive range and depth of innovations coming from the country and potential to impact the agrifood industry as a whole.”