The report titled “India Agritech Market Outlook to FY’2025-By Nature of Services (Input Market Linkage & Farming as a Service, Supply Chain, Post Harvest Management & Output Market Linkage, Precision Farming, Advisory & Analytics and Agri Fintech)” provides a comprehensive analysis of the agritech industry and start up ecosystem in India. The report covers various aspects including the current agriculture & productivity scenario, demand analysis & farmers’ scenario, supply ecosystem, trends & recent developments, issues & challenges, Porter’s Five Forces Analysis, government initiatives, technology landscape, operating models of agritech players, competition scenario in various segments, & more. The report concludes with future projections for the agritech industry including market revenue by FY’2025, Covid-19 impact, analyst’s recommendations and future trends and outlook.
India Agritech Market Overview and Size
The India Agritech Market is in early growth stage with increasing awareness among farmers due to growth in internet penetration and mobile connectivity. Many agritech startups have entered the industry, especially in the last 5 years, seeing the potential of the industry. Government impetus in the form of setting up incubators, grants and entering into public-private partnerships with these players has also stimulated entry of players in the sector. The sector is also witnessing high level of investment activity, with increasing interest from venture capitalist firms and international investors. In 2020 alone, the investment in the sector crossed USD 300 million. The overall agritech industry witnessed a revenue growth of ~85% during FY’2019-FY’2020.
India Agritech Market Segmentations
Input Market Linkage and Farming as a Service (FaaS) Segment
The adoption of input market linkage solutions is fast growing in the country. Many players such as Agrostar and Bighaat offer missed call based service for farmers ordering inputs & equipments along with cash on delivery service. By partnering directly with input producers, these players are able to eliminate multiple levels of intermediaries and provide better prices to the farmers. On the other hand, some players are offering services such as on-demand machinery rental, field leveling, and pesticide spraying as a part of farming as a service. These services are usually on pay-per-use of per acre basis. Many startups in this segment are also expanding in output and data based advisory for additional revenue sources. The segment witnessed a ~2x growth rate from FY’2019-FY’2020.
Supply Chain, Post Harvest Management & Output Market Linkage Segment
The segment is the largest contributor to the revenue of the agritech industry in FY’2020 and witnessed maximum growth amongst all the segments in FY’2020. Players in the segment are involved in collection, processing, storage, logistics and distribution of agri produce from the farmers to the end customers or retailers. Inadequate rural infrastructure including pack houses at farm gates, paved roads, etc and lack of traceability along the supply chain has necessitated the intervention of agritech players in the segment. Supply chain players have received maximum investments in the recent years and startups including Samunnati, Ninjacart, Waycool among others are some of the highest funded startups in the industry.
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Precision Farming, Analytics and Advisory Segment
Lack of knowledge about scientific farming methods and techniques among famers in India led to the entry of agritech startups offering precision farming solutions and advisory. These players collect farm specific data about soil, weather conditions, humidity, pests etc using IoT sensors or geospatial technology and combine analytical capabilities to provide timely insights to the farmers. Some players are also working on a B2B model and offering software as a service such as ERP for farm management, etc. Agritech startups are also coming up with quality assessment and grading solutions for large agribusinesses and traders. The segment witnessed a growth of ~17% from FY’2019 to FY’2020.
Agri Fintech
The segment comprises of agritech startups offering solutions such as credit, insurance, warehouse receipt financing, trade financing, etc. The segment is still in a nascent stage and has witnessed the entry of players majorly in the last 5-6 years. Lack of access to organized credit, collateral and formal documentation is the biggest challenge faced by farmers that are often in need to small ticket sized loans. Agritech players are leveraging technologies such as geo tagging of farm lands and remote crop monitoring to build risk profiles of farmers and ascertain their credit worthiness. By partnering with banks, NBFCs and input suppliers, agritech players offer loans at lesser interest rates than unorganized lenders.
Competitive Landscape in the India Agritech Market
The India Agritech Market has presence of ~600-700 agritech startups as of 2020. Startups in the supply chain & output linkage segment including Samunnati Agro, Ninjacart and Waycool dominate the industry on the basis of revenue in FY’2020. Startups in the precision farming, advisory & analytics segment are still in a nascent stage and face the challenge of monetization at scale. Cropin is the leading player in the precision farming segment. Within the input market linkage and farming as a service segment, Agrostar was observed to be the leading player. The agri fintech space is currently lead by Samunnati’s NBFC arm and Origo Finance. Most players in the agritech industry compete on the basis of parameters such as number of farmers on-boarded, partnerships, physical touch points, geographical presence, etc.
India Agritech Market Future Outlook & Projections: The industry is expected to witness a CAGR of ~32.0% on the basis of revenue by FY’2025. Growing rural smartphone and internet penetration is expected to contribute to higher adoption agritech solutions in the country. ~410 million new smartphone users are expected to be added to India’s current user base by 2025, without majority of the demand coming from rural areas. Geographical expansion to different states by agritech players is also expected to be witnessed in the coming years. The entry of new players with end-to-end solutions along the agribusiness value chain is anticipated for the future.
India Agritech Market (Basis Revenue):-
India Agritech Market Segmentations
By Nature of Services, FY’2019-FY’2020 (On the basis of Revenue)
Input Market Linkage & Farming as a Service (FaaS)
Supply Chain, Post Harvest Management & Output Market Linkage
Precision Farming, Advisory & Analytics
Agri Fintech
By Region (On the basis of No. of Agritech Startups)
Karnataka
Maharashtra
Delhi NCR
Haryana
Tamil Nadu
Telangana
Gujarat
Others
Agritech Startups Covered:-
Input Market Linkage & Farming as a Service (FaaS)
Agrostar
Dehaat
Gramophone
EM3 Agriservices
Gold Farm
Bighaat
Thanos Technologies
Supply Chain, Post Harvest Management & Output Market Linkage
Samunnati Agro
Ninjacart
Waycool
Arya Collateral
Dehaat
Farmlink
Crofarm
Agrowave
Precision Farming, Advisory & Analytics
Cropin
Satsure Analytics
Intello Labs
FarmERP
AgNext
BharatAgri
Yuktix Technologies
Fasal
Agricx
Agri Fintech
Samunnati Financial Intermediation & Services
Origo Finance
Ergos
Gramcover
Aryadhan Financial Solutions
Farmart
Jai Kisan
Poultry & Dairy Tech
Milk Mantra
Country Delight
Stellapps
Happy Cow Dairy
Eggoz
Mr. Milkman
Mooofarm
Key Target Audience:-
Agritech Companies
Input Manufacturing Companies
Venture Capital Firms
Independent Investors
Industry Associations
Rural Banks & NBFCs
Government and Regulatory Bodies
Time Period Captured in the Report:-
Historical Period: FY’2019-FY’2020
Forecast Period: FY’2021-FY’2025
Key Topics Covered in the Report:-
Agriculture Overview, Agri Exports from India & Productivity Scenario
Demand Analysis, Farmers’ Scenario & Pain Points of Farmers
Need Analysis of Entities in Agribusiness Value Chain
Overview and Genesis of India Agritech Industry
Agritech Operating Model & Services Offered
Trends and Growth Drivers in the Industry and Challenges Faced
India Agritech Market Size and Segmentations, FY’2019-FY’2020
Investment Analysis of Agritech Industry
Government Initiatives, Agri Reform Laws 2020 & Public Private Partnerships
Industry Porter’s Five Forces Analysis
Cross Comparisons between Agritech Players in Different Segments
Future Market Size and Segmentations, FY’2020-FY’2025F
Covid-19 Impact on the Industry, Future Trends & the Way Forward
Analyst’s Recommendations
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