Highlights from Agritech Investory Piece

Agtech has not become a smaller opportunity. We have simply become more realistic about what it takes to build in agriculture; less disruption for its own sake, and more patience, execution and depth.

The question is no longer simply how large the agricultural market is. It is which problem can be solved well enough, and patiently enough, to build a durable business around it.

Investors will look beyond user growth and funding milestones towards retention, revenue quality, unit economics, capital efficiency and defensibility.

The more interesting businesses may be those that solve specific, high-value problems while combining technology with on-ground execution. Technology can make procurement more efficient without replacing procurement networks. Better data can improve credit, insurance and quality assessment. Traceability can help Indian producers access global markets. Better inventory visibility can improve storage and working capital.

Farmer trust takes time. Procurement networks take time. Physical infrastructure takes time. Commodity cycles can quickly change the economics. Agriculture is a slow burner. But slow does not mean small.

The funding cycle tells part of the story. Indian agritech startups raised around $33 million in 2015, rising to $528.4 million by FY2021, according to Omnivore. By 2025, funding had fallen to around $202 million, according to Inc42. Yet the underlying agricultural economy continued to grow, with agriculture, livestock, forestry and fishing GVA increasing roughly 2.5x between FY2015-16 and FY2024-25.

But agriculture taught us that an intermediary is often more than an intermediary. They may aggregate produce, provide credit and working capital, assess quality, manage logistics and maintain relationships. Removing that layer without replacing these functions does not automatically create a better system.