Introduction
Over the last ten years, farmers have been sluggish to accept new technologies, largely due to production traditions and reluctance to spend money on unproven innovations that, to be honest, may not even guarantee a payback. So what is AgTech? Because of technological improvements such as those in gadgets, detectors, machinery, and telecommunications, farms and agricultural processes now operate quite differently from those just a few decades ago. Top AgTech companies frequently employ cutting-edge technologies like GPS, robotics, humidity and temperature sensors, and satellite pictures.
What is AgTech?
AgTech refers to cutting-edge agricultural technology that substantially improves operational stability by boosting output, enhancing resource effectiveness, and minimizing environmental impact. By raising the protracted value of agricultural products, top AgTech companies deliver continuous or improved revenue to owners. For the agriculture industry to be innovative and efficient, revolutionary techniques are required to keep up with the changing environmental, social, and economic system. Within the last six years, investment expenditure in AgTech has multiplied six-fold, with stakeholders varying from investment groups to private people. And since 1948, these improvements have contributed to a 170 percent rise in agricultural development in the United States. In contrast, labor expenses have dropped by 24 percent while input prices have almost stayed steady.
Why is Agtech important?
Numerous potential prospects exist in the AgTech sector. Having understood what is AgTech, here are the top five reasons why investing in AgTech development is a wise move:
1. Global grain demand has been increasing
Agriculture is a steady and dependable investment because of the rising need for sustainably produced food, fiber, and energy throughout the twenty-first century. With an increase in population, the pressure on agriculture has doubled. Therefore, top AgTech companies can help farmers meet the rising demand.
2. Switching to renewable is more and more in demand.
The worldwide cry for resource depletion has created the path for top AgTech companies to come into play. With their use of renewable energy sources, AgTech proves to be a beneficial option.
3. Access to high-quality soil and agricultural land is limited.
With the reduction in the size of landholdings, the product per unit area has declined rapidly. Hence, new-age technologies are required in the agricultural sector to make the available land profitable in terms of output.
4. Access to sufficient quantities and quality of water is dwindling.
Ordinary farming requires plenty of water resources and also wastes water in a considerable amount. The smart way to conserve water and promote agricultural growth is only possible through the revolutionary technologies of top Agtech companies.
5. Current cultural behaviors cannot be sustained in light of the growing environmental difficulties.
As the entire planet is shifting to sustainable options to protect the resources, climate, and mankind, Agtech strategies help farmers to grow crops sustainably.
What are the benefits of AgTech?
While AgTech offers numerous benefits to farmers and climate, here are the few benefits of using AgTech.
- Economic benefits
The revolutionary technologies help in cost reduction in the fields of labor and expensive resources. Without using heavy types of machinery, farmers can now produce maximum output in a low-cost setup.
- Environmental benefits
Besides saving money, using efficient technologies helps save the environment by putting resources that do not cause any pollution into use. Also, the use of renewable resources is a smart move toward sustainability.
- Water conservation
Primitive agricultural techniques require huge amounts of water per day for irrigation, but the top Agtech companies have devised revolutionary ideas to use less water for more produce.
- Higher productivity
Having understood what is AgTech, one can comprehend the higher productivity that could be achieved by using minimal resources. Not only is this budget-friendly, but it also ensures better profit. Then top AgTech companies contribute nearly 27.2 percent of the world’s production of corn, 29.7 percent of soybeans, 6.9 percent of bean production, etc.
Top 5 Agtech startups in India
1. AgroStar
Founder
- Shardul Sheth and Sitanshu Sheth
Year of Establishment
- 2013
Headquarters
- Pune
Offering
By providing tips from professionals on how to control harvests and increase productivity, the agritech business aids producers. It closes the knowledge gap and uses data and analytics to address farmers worrying about accessing advanced agri-inputs. Over half a million producers in Bikaner, Bombay, Uttar Pradesh, and Madhya Pradesh are served by AgroStar. In-depth industry extension and greater pan-India engagement are now the startup’s primary goals.
| Funding round | Money Raised | Lead Investors |
| Series D- AgroStar | $70M | CDC Group, Evolvence India Fund, Hero Enterprise. |
| Series C-AgroStar | $27M | Bertelsmann India Investments |
| Venture Round AgroStar | – | InnoVen Capital |
| Series B-AgroStar | $10M | Accel |
| Series A-AgroStar | $4M | Chiratae Ventures |
| Seed Round AgroStar | $645.1K | Aavishkaar Venture Capital |
2. DeHaat
Founder
- Amrendra Singh, Shyam Sunder, Adarsh Srivastav, and Shashank Kumar
Year of establishment
- 2012
Headquarters
- Uttar Pradesh
Offering
The main goal of DeHaat has been to use contemporary techniques to help problems in the Indian agriculture industry by bundling all of the services offered throughout the agri-food supply chain into a single platform.
| Investor’s Name | Funding round | Partners |
| Prosus Ventures | Series D – DeHaat | Ashutosh Sharma |
| FMO | Series D – DeHaat | Jaap Reinking |
| Sequoia Capital India | Series D – DeHaat | Abhishek Mohan |
| RTP Global | Series D – DeHaat | Galina Chifina |
| Sofina | Series D – DeHaat | Yana Kachurina |
| Lightrock | Series D – DeHaat | Vaidhehi Ravindran |
| Temasek Holdings | Series D – DeHaat | – |
3. CropIn
Founder
- Krishna Kumar, Kunal Prasad, and Rupesh Goel
Year of establishment
- 2010
Headquarters
- Bengaluru
Offering
Farming increasingly depends on cutting-edge crops science technologies like machine learning, database management, and the industrial IoT. These technologies may help to increase harvests, improve productivity, and promote sustainable management. The statistics of agricultural technology equips farmers and agribusinesses to increase per-acre value.
| Investor Name | Funding round | Partner |
| Invested Development | Series C – Cropin | |
| Pratithi Investment | Series C – Cropin | |
| Sahra Growth Capital | Series C – Cropin | |
| ABC World Asia | Series C – Cropin | David Heng |
| Ankur Capital | Series C – Cropin | |
| CDC Group | Series C – Cropin | |
| Chiratae Ventures | Series B – Cropin | |
| Bill & Melinda Gates Foundation | Series B – Cropin | |
| Ankur Capital | Series A – Cropin |
4. Fasal
Founder
- Shailendra Tiwari and Ananda Verma
Year of establishment
- 2018
Headquarters
- Bengaluru
Offerings
Through their AI-powered technology for agribusiness, which provides farm-specific, crop production, harvest-specific, practical guidance, Fasal has, since its beginnings, assisted its countless farmers in reducing cultivation costs and increasing quality and production. They promote sustainable farming, and because their approach affects all three spheres of society—social, financial, and environmental—it significantly influences the UN’sUN’s Sustainable Development Goals.
| Investors | Funding round | Partners |
| Genting Ventures | Seed Round – Fasal | |
| Omnivore | Seed Round – Fasal | Mark Kahn |
| Antares Capital | Seed Round – Fasal | |
| 3one4 Capital | Seed Round – Fasal | Anurag Ramdasan |
| Wavemaker Partners | Seed Round – Fasal | Gavin Lee, Paul Santos |
| Sandeep Singhal | Seed Round – Fasal | |
| The Yield Lab Asia Pacific | Seed Round – Fasal | |
| Sandeep Singhal | Seed Round – Fasal | |
| Genting Ventures | Seed Round – Fasal | |
| Wavemaker Partners | Seed Round – Fasal |
5. IntelloLabs
Founder-
- Milan Sharma, Himani Shah, Nishant Mishra, and Devendra Chandani.
Year of establishment
- 2016
Headquarters
- Haryana
Offerings-
The smartphone app from the agritech business employs AI and picture insights to assess whether a crop is overripe, fit for consumption, or unusable. It accomplishes this by photographing the product, which can aid in predicting the value of the entire batch.
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| Investors | Funding round | Partners |
| Saama Capital | Series A – Intello Labs | |
| Avaana Capital | Series A – Intello Labs | |
| Omnivore | Series A – Intello Labs | |
| Nexus | Series A – Intello Labs | |
| GROW Agrifoodtech Accelerator | Series A – Intello Labs | |
| SVG Ventures | Series A – Intello Labs | John Hartnett |
| Omnivore | Series A – Intello Labs | |
| Saama Capital | Series A – Intello Labs | Kiranbir Nag |
| Nexus Venture Partner | Series A – Intello Labs | |
| SVG Ventures | Pre Seed Round – Intello Labs | John Hartnett |
Why are AgTech Startups so popular?
AgTech firms have already received $1 billion in funding as of 2022. Plenty, a farming firm that has collected more than $940 million since 2014, received a $400 million Series E investment, one of the largest in 2022. So what is AgTech, and why are financiers now investing in the AgTech industry?
- Improved technology
The availability of revolutionary methods to farming has attracted many investors and farmers to avail of the AgTech services. Top Agtech companies have become popular as these new methods maximize output.
- Boost the economy
The discarding of heavy machinery and a huge amount of labor has proven beneficial for AgTech companies, farmers, and the whole economy. With fewer inputs, farmers can now produce in high amounts.
- Profit maximization
One of the primary aims of top AgTech companies is to maximize the profit from any agro-based industry by utilizing modern-day methods and artificial intelligence. The lucrative profit has further attracted investors and companies to join the AgTech sector.
- Social picture
As these AgTech industries thrive on renewable resources, companies associating themselves with such sectors have a greater social image for working towards the planet’s sustainability.
- Low capital investment
Most top AgTech companies work on low capital investment to get the best out of it. Hence, this one-time investment in technologies and data handling is far more attractive than continuous investment in machinery and its repairs.
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Conclusion
Many firms have sprung forward in recent years to assist farmers in employing innovation to boost production and get greater harvests. According to a 2019 NASSCOM research, India is the household to more than 450 agritech businesses that are expanding at a rate of 25% annually. With data-driven platforms, these businesses are progressively enabling the 150 million or more farmers worldwide. The Indian agritech sector can grow to $24 billion by 2025, as shown in research by EY.
