Big on Soil, Short on Seed Money: Agritech Gets 2%

Image Source: Entrackr

India’s agritech sector, despite its promise and pivotal role in the economy, has received only 2 percent of total venture capital funding since 2020. This startling figure emerges from a comprehensive analysis of startup investments, revealing a deep disconnect between agricultural innovation and investor confidence. While fintech, SaaS, and healthtech continue to attract billions, agritech startups are struggling to scale, survive, and secure sustained backing.

Key highlights from the funding landscape

1. Funding disparity and sectoral neglect
- Between January 2020 and mid-2025, Indian startups raised approximately 107 billion dollars in venture capital
- Agritech startups accounted for just over 2 billion dollars across 246 deals, representing a mere 2 percent of the total
- Growth-stage ventures secured 1.59 billion dollars across 60 deals, while early-stage startups attracted 500 million dollars through 186 deals
- In contrast, sectors like fintech and e-commerce have produced over 120 unicorns, while agritech has yet to birth even one

2. Rise and fall of investor interest
- The golden phase for agritech was 2021–2022, when funding surged from 155 million dollars in 2020 to 802 million dollars in 2022
- This momentum collapsed in 2023, with funding plummeting by 78 percent to 178 million dollars
- A brief recovery in 2024 saw a 30 percent uptick, but the first half of 2025 witnessed another 58 percent drop, bringing funding down to just 96 million dollars

3. Top-funded players and stalled unicorn dreams
- Ninjacart, WayCool, and DeHaat lead the pack with valuations hovering around 700–815 million dollars
- Their last major funding rounds occurred in 2022, with no significant capital inflow since
- Other notable startups include Arya.ag, AgroStar, Absolute, Jai Kisan, Vegrow, Ecozen, and Farmart, each raising between 60 and 174 million dollars

4. City-wise funding distribution
- Delhi-NCR emerged as the agritech capital, raising over 851 million dollars across 71 deals
- Bengaluru followed with 550 million dollars from 76 deals
- Chennai, Pune, and Mumbai collectively secured over 550 million dollars, while Tier-II cities like Hyderabad, Kochi, and Ahmedabad also saw modest activity

5. Shutdowns and structural challenges
- Startups like Fraazo, Otipy, and Deep Rooted, once hailed for their farm-to-fork models, shut down due to scaling and profitability issues
- ReshaMandi, a silk supply chain innovator, ceased operations amid governance controversies including revenue inflation and fake invoicing
- Many startups pivoted from farm-to-fork to mandi-to-fork models, limiting innovation and margins

6. Policy support and funding gaps
- Since 2024, over 210 funds have been launched to support startups, but only 23 focus on agritech
- Government-backed initiatives like AgriSURE, Agri Udaan, and the Innovation and Agri-Entrepreneurship Development Programme offer support, but bureaucratic hurdles and limited scalability persist
- Despite these efforts, agritech remains underfunded and underrepresented in India’s startup ecosystem

What this means for the future of agritech

The sector’s stagnation is not due to lack of potential but a mismatch between investor expectations and agritech’s long gestation cycles. Areas like seed innovation, crop diversification, precision farming, and agri-fintech hold promise but require patient capital and policy stability. The farm-to-fork dream needs to be reimagined with deeper integration, sustainable margins, and grassroots innovation.

Bottom line

Agritech in India is at a crossroads. Without bold investment, structural reform, and visionary entrepreneurship, the sector risks being left behind in the country’s digital transformation. The next wave of agritech success will depend on those willing to dig deep—into the soil and the strategy.

Sources:  Entrackr, SMEStreet, TheKredible, AgFunderNews, FSG, ATREE, Financial Express, Venture Intelligence