India Agritech Market, India Agritech Industry, Market Sales, Market Revenue: Ken Research

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How is The Agritech Industry Positioned in India?

India is traditionally an agrarian economy. Agriculture accounts for ~% of the total employment in India and contributes ~% of the country’s GDP. In FY’2020, the agri products market in India on the basis of volume was valued at ~ Million tones with the Gross Value Added by the Sector amounting to ~ INR Lakh Crore in FY’2020. The market growth is dependent on various factors such as climatic conditions, productivity of the crop, weed management, pest and disease management, which often lead to fluctuation and volatility in the industry. Rice and wheat are the major crops sown in India accounting for ~% and ~% of the cultivated land in India. Crop yield in India however lags behind its peers including US, China and Brazil in most Foodgrains. Low yield results in low incomes for the farmers.

These pain points of farmers resulted in the emergence of agritech startups in India, aiming to solve the inefficiencies along the agribusiness value chain. By the end of 2020, there were over 600 agritech startups in India, operating with different models in different segments. The sector has been witnessing intensive funding from venture capital firms and even international investors. In 2020, the total investment in the sector crossed USD ~ million, despite the ongoing Covid-19 pandemic. On the basis of revenue, the agritech industry was valued at ~ INR Crore in FY’2020, witnessing a growth rate of ~% from FY’2019-FY’2020.

India Agritech Market Segmentations

Input Market Linkage & Farming as a Service (FaaS) Segment

The segment is the second largest contributor to the revenue of the overall agritech industry in India. 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. 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.

Supply Chain, Post Harvest Management and Output Market Linkage Segment

The segment 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.

Precision Farming, Advisory and Analytics Segment

The segment is currently in a nascent stage in India. 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 offering quality assessment hardware and farm management solutions.

Agri Fintech Segment

The segment is currently in nascent stage in India. 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.

india-agritech-market

Competition Scenario in India Agritech Market

Input Market Linkage and Farming as a Service Segment

The competition in the segment is concentrated with the top 5 players accounting for ~% of the industry’s revenue. Startups operating in the segment compete on the basis of parameters such as number of farmers catered, geographical presence, typed of inputs, number of brand partnerships, etc. Major players operational in the segment are Agrostar, Dehaat, EM3 Agriservices, Gold Farm, Gramophone, etc.

Supply Chain, Post Harvest Management and Output Market Linkage Segment

The competition in the segment is concentrated with the top 5 players accounting for ~% of the industry’s revenue. Agritech startups operating in the segment compete on the basis of parameters such as number of buyers, partnerships, geographical presence, number of farmers/suppliers, number of fulfillment centers, etc. Major players operational in the segment are Samunnati Agro, Ninjacart, Waycool, Arya Collateral, Dehaat & many more.

Precision Farming, Advisory and Analytics Segment

The competition in the segment is fragmented with the top 5 players accounting for ~% of the industry’s revenue. Agritech startups operating in the segment compete on the basis of factors such as proprietary hardware/technologies, number of customers/farmers, farmer on-boarding process, geographical presence, etc. Major players operational in the segment are Cropin, Intello Labs, Satsure Analytics, FarmERP, Agnext & many more.

Agri Fintech Segment

The competition in the segment is moderately concentrated with the top 3 players accounting for ~% of the industry’s revenue. Agritech startups operating in the segment compete on the basis of parameters such as number of partner banks & NBFCs, interest charged, geographical presence, channel partner network, number of customers, etc. Major players operational in the segment are Samunnati Financial Intermediation Services, Origo Finance, Ergos, Gramcover, Aryadhan & more.

India Agritech Market Future Outlook and Projections

The agritech market in India is expected to reach at a value of INR ~ Crore by FY’2025 registering a CAGR of ~% during the forecast period of FY’2020-FY’2025. The outbreak of Covid-19 pandemic acted as a catalyst and stimulated the adoption of agritech solutions among farmers and other stakeholders. Other factors as growing rural internet penetration, higher mobile connectivity, increased focus on rural financial inclusion, etc are expected to drive the growth of the industry. Many more startups are expected to enter the industry in the coming years to harness the industry’s untapped potential.

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

For more information on the research report, refer to below link:-

India Agritech Market

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