India's agritech landscape is poised for significant growth, with 19 agritech soonicorns (startups on the verge of becoming unicorns) and 40 minicorns (valued over USD 10 million), according to a recent RBI report. These companies are leveraging emerging technologies, particularly artificial intelligence, to bridge the technological gap in agriculture and develop innovative business models.
The report, titled 'Agri-tech Startups and Innovations in Indian Agriculture', authored by D. Suganthi, Jobin Sebastian, and Monika Sethi, reveals that while India has only one unicorn in agritech, the sector's future is bright with a growing number of soonicorns and minicorns.
Investment in India's agritech sector saw a sharp rise, growing from USD 370 million in 2019 to USD 1.25 billion in 2021. However, the momentum has since moderated in line with global funding trends, which peaked at USD 10.9 billion in 2021 and 2022 before falling to USD5.2 billion in 2023.
The Indian government has been actively supporting agripreneurship through initiatives aimed at reducing regulatory barriers, developing innovation-driven infrastructure, and fostering collaboration among entrepreneurs. Despite this growth, agritech startups face challenges, especially in scaling operations. The paper highlights that the sustainability of these startups is closely linked to the adoption of modern farming technologies by Indian farmers.