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    Agritech study - Inc 42

    Copyright:

    © All Rights Reserved
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    35 views74 pages

    Inc42 Agritech 2021

    Uploaded by

    Yograj Brar
    Agritech study - Inc 42

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    © All Rights Reserved
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    Inc4Plus India’s AGRITECH Market Landscape Report 2021 Tableot Contents Scope Of The Report 03 Executive Summary 04 Introduction 05 Agriculture in india: Overview. 06 © The state OF Agricuture in india © Factors brving The Growth of Agritech India’s Agritech Startup Landscap +» 13 (© Agtitech in nia Key Highlights © indic’s Agrtech Market size Agritech Startup Launches Agrtech in india: Sub-Sector Landscape Agrtech Market Segmentation Prominent agritech Medals Agritech Funding Landscape In india. 27 ‘Competitive and Financial 37 Landscape Of Agritech Startups Market Linkage Foas (Farming-as- Farm inputs Agii-Fintech © Precision Agriculture Industry Analysis Of Agritech Market In India SWOT Anaiysie Growth Drivers For Agitech Market In india lsaues & Challenges in Indian Agritach Market Which Tech Indian Farmers Using? How Policies Are Shaping India’s Agritech Landscape Rise Of Hydroponics in India Agritech Trends For 2021 & Beyond Analysts’ Recommendation Methodology Bibliography 47 51 52 58 62 65 68 69 Scope Of The Report With over 50% of India earning it lvalhood from agriculture, India’s agritech revolution not only has a massive opportunity but also will Influence the lives of over hat a billon people, In india, formers have had to face acute challenges over decades which has eroded the stobilty that once made ogricuture a powerful economic sector. With the rise of industrilisation and manufacturing, the services-based economy and technology startups, the agriculture sector had to take @ backseat in terms of entrepreneurial fcus and policy-making. This le to challenges such as emall and fragmented landholdings ow farm income, unorganised supply chains, land saturation, groundwater depletion and climate change, inefficient transport ‘nd storage as well os imited access to finance. Stepping into solve these challenges, India's agrtech startups are enabling more efficient market linkages for farmers, distibutors and Consumers. But opportunities aso lie in areas such as crop inteligence and monitoring, clmate monitoring, input management and procurement, revamping the supply chain to reduce wastage, access to odvanced hardware and machinery, production-linked lagti-financing. tarming-as-a-service (Faas), urban farming and lot more. The State Of Indian Agritech 2020 Report Will Cover (© Thestate OF Agriculture in indi (© Role OF Policy And Regulations In Agritech (© Agtltech Market Potential in india (©. state of Hydroponics And Urban Farming in india. (© Business Models In Agritech in india (©. Future Outlook And Projections For Agritech Market In Indic ‘© SWOT Analysis, Recent Developments And Challenges (© Recommendations For Agitech Market in india, Executive Summary $276.3 Bn $467 Mi 1,000+ Estimated GVA By Contribution Of Farming Funding Raised By oe ee ure nrY20 Towards Agriculture Indian agritech Startups s aa ovanrad Dung 208 Ton 20%0 Saipan. Es “a oe Aaritech Penetration Market Opportunity Potential in inci, 2020 In incia, 2020 Introduction Besides being the primary source of income for more than haif the country, Indias @ crucial ynchpin in the global food supply chain. itis the biggest producer, consumer, and exporter of spices in the world, and also the fourth largest exporter of seafood in the world, as per the Rabobank World Seafood Trade Map 2019. ‘Given ths, there has been a sustained push by the government as well asthe food processing industry to bring in global investors to help boost the prospects of indian farmers. Even in terms of foreign investments, over $91 Bn have been invested in the Indian agriculture sector ‘rom 2000-2018, as per data released by DPI, the central government department which handles startup affairs and policy Indeed, te massive $121 Mninvestmentin seatood-focused agritech startup FreshToHome led by Investment Corporation of Dubai ((CD) and the US government-atfiiated DFC in October 2020 highlights the prominence of agritech startups in the global investor pool. But this was not ‘always the case. \wnile the spotightin the post-Covid world and the past yeor is squarely on ogritech and the postive disruption at the farm level, it has been ‘asiow emergence for agritech startups in India which started in 2015 with the Startup India programme. Agriculture In India: An Overview The State Of Agriculture In India Gross Value Added By Agriculture In India To Reach $276.3 Bn By FY2020 4% growth in GDP contribution of agriculture in FY20 expected to revive the sector after a weak 2019 00 (© About 58% of India’s population depends on ‘gricuture for subsistence 2712 Mn astimated formers 200 (© According to indian Brand Equity Foundation (BEF), the gross value added (GVA) or GDP contribution by ‘gricuture, forestry and fishing is estimated to be $ 00 27637 BninFY20 (PE). Inuso elon ° Growth inthe GVA In agriculture and alied sectors stood ot 4% in FY20 The State Of Agriculture In India Farming Accounted For Over Half Of All Agriculture Value In FY20 With the largest livestock population, livestock was the second largest contributor to gross agriculture value added in FY20 Forming Livestock Forestry ‘Source: Press Information Bureau, Government of Inia Feng India is the lorgest producer of spices, pulses, milk, 10, cashew, jute and maize Itis the second largest producer of wheat rice, fruits, vegetables, sugarcane, cotton and ollseeds Agriculture has a contribution of 12% to Indts total exports 46 out of the 60 known types of soil are present in India, which is home to 20 agro-climatc regions and Al the 15 major climate systems in the world India has the largest livestock population of around 535,78 Mn, 31% ofthe worlds livestock population. Factors Driving The Growth Of Agritech Pain Points Of Indian Agriculture Sector Fueling The Rise Of Agritech Despite its significance tothe indian economy, agriculture often played second fiddle to many of india's emerging industries, particulary in manufacturing and the I services sector. This in turn led to agricuture taking a backseat and faling behind the times. There were other {actors oo, which have necessitated today's agrtech push. (e) retin) ete aan 03 conten Branco ‘Source: nc42 Plus Agritech’s Rise In India: Key Factors Inadequate And Unstructured Data: Acute lack of real-time data and insights act {as a barrier for tech penetration in the agri sector. Technologies such as drones, sensors, IoT, blockchain, imaging, analytics and machine leaming are all dependent on data, which is not existent or unstructured in most cases. Lack Of Access To High Quality Inputs : Indian farmers lack access to high quality ‘agricultural inputs, farm machinery and other allied equipment, which leads to low agricultural productivity or low quality crops. Agritech startups have addressed this challenge by increasing the accessibility through digital ecommerce platforms for delivery of inputs such as seeds, fertilizers at the doorsteps of farmers. Inefficient Supply Chain: Post harvest loss in india amounts to $13 Bn. which is primarily due to the poor transportation and storage facilities. This creates opportunities for the startups to streamline the supply chain by providing warehousing monitoring solutions, market linkage and demand driven cold chains. Agritech’s Rise In India: Key Factors a Ga 3= > eeveveve 2 2 2 Qectm 2 3 Om 3 5 2 3 2 2 2 2 2 3 = 2 2 Tsetsaponis 2 2 2 - 2 fv 3 3 rinjocart MZ AMMCRBE Faygh = DK time ecen e $o0RAso seciover gAteroos =D aonext Oe Boum sonew ooM, vere “agrex o agrees Comeetion Note 1220, January 19,2021 ‘se or eterence tothe trademark ogo ot ua Agra Chemica Limited inthe report wae an ator and the sama has been ected by removing Agritech In India: Sub-Sector Landscape Market Linkage Farm inputs Precision Agriculture Faas Financial Services hinjacart ecozen Afpwanoot Eerotarm Otipy ((oxico Werakisan o Aerroese mink tharat bazar oh @esinerwome HF Swerzep aonasco Boa YY Crmophone @petaat wirosta Mss DD WHS mitra. Tasad Cronin aibono @estinm AGMEXT Keishitlud THEmcae ®& aunege clover @ at IE obtont. ertark 00% seiition FP samenil castrlow ABM Monee Source: ined? Plus Correction Note 1220, January 19,2021 Use ‘oF eference tothe trademark logo of Zuar Agro Chemicals Limitedinthe report was on ertor and the same hes boon recifed by removing Form ngs: got F005: eringing form equipment meciney end inp on 0 poy-per-UHe or conto Boss Irodeleimproning aceorste.” _Precilon Arcus: Us of gpospatl ond weather ot, snsors robots drones and morte prove producti, Fee era occeee Te Crete cetrarven lm management suns ond Mpvefexaurcs management ——a- orm automaton Ststup binging nds automation farms though machinery took ond robots in seeding, ate Posten Fanaing howertng endo Botechnloy: stan cng serminostructr: Pong aces looming technologie sich geen sates dooming dp Hgaon, Ieteachinpantend onal Srarenmanal constr nd mae | Gap ay EY Form inputs Forming cuttation Distrbution ost Production “anervesting onperatone —Peestngatonding nal Sing a ‘Quolty Management Tracsbity-Fost-honvest produce handing. aly Shecend aream roaice monteing ona voce rep ene Marist tnkoge:Digtal plttorm and physica nrasoucture to handle ‘ost harvet supp chown and connec arm caput wah ne customer Financial Senvies Improving inancialinelution fr ormers tough acces to cect hewance services and dial wansactons Information Platorms: Onin platiors and ops fer agrtch education fr pricing weather ifrmatin. marks esearch and mor, Note: Ont Fm Inputs Foes, Precision Agreuture, Qually Management & Traceabity, Market tnkage and nancial Services Are Considered While Computing Souree:Ine#? analysis . Agritech Market Segmentation Agritech In India: Market Potential Across Sub-Segments In 2020, market linkage had $12 8n market opportunity, followed by Lending/financial segment Market Linkage MortetPtetlin on i g i. i Source: Y, Inca? Analysis Prominent Agritech Models Farm Inputs Traditional Model For Farm Inputs Wo TOK Magn o7-n07-10RMorgn =O AK BHMargn OHS e... » evn Me a 2 oe 2a se Typical Agritech Model For Farm Inputs 78-10% Margin 107-110 4%- 5% Morgin ma-n8. Agrtech Payor ==. Former Source:inca? Plus, €Y Note: Coste being In Precision Agriculture aye oye -8x commision for Cotecon and 20% fr lo ‘generate to fetal Colaction cantor ie: | la Ve o PaysINR 600 to INR 800 pr test ‘source: nea2 Plus, Y Market Linkage Traditional Market Linkage Value Chain a> fp 2) farmer rice Tronspor 06 | casnfonetoter steewve cost T0 — i ‘Retailer Source: ne42 Plus, EY Report Market Linkage Agritech Market Linkage Value Chain ‘Source: nc42 Plus, £Y Report iE |e: Ko 2 - Farming-as-a-Service (Faas) The Farming-as-a-Service (Faas) Model In Agritech enc requeet or rental equipment to ogrkech payer (flere rental aps equipments on the bai of poy per ue or ubscrption bose Source: nca2 Plus, EY Report Financial Services Agri-Financial Services Model For Loans And Insurance roptoon (inca rom he net ® ase > eld eropping pattrn) arn) = Ye, a wo selec Source: Inc? Plus, EY Report Agritech Funding Landscape In India Indian Agritech Funding Grew By 192.5% From 2014-2019 Over 467 Mn invested in agritech startups from 2014 to HI 2020 100 woo ‘Souroe ned? Pus Anata "Note Bored on ceioend funding 12020 numberof Funding Decls Agritech Funding By Sub-Sectors Market Linkage Remains An Investor Favourite In Agritech Space Overall, market linkage startups have bagged $305.2 Mn through funding from 2014 to HI 2020 aos2 : i 200.0 i w2 us os 5 mL. = Moriatntoge —Fominpute. rectionagteutre Tons Trencng Source nee? Pus Ancyle Note ated on sion funding 2020 Market Linkage Startups Dominate Agritech In Terms Of Funding Deals Precision agriculture was another investors favourite with 29 funding deals from 2014 to HI 2020 Number ot Funding Deals 2016 2018 2020 = Morkettinkage — Farm inputs — Precision Agrcuture — Faas — Financing = others Agritech Funding By Location Bengaluru Leads Agritech Funding With Over $256.5 Mn Raised Till Hl 2020 Chennai and Pune are among the top three startup hubs for agritech Source: Inc42 lus Analysis Pune Funding amount cheno Note: Based on disclosed funding tl MI 2020 Bengaluru Leads Among Startup Hubs For Agritech Funding Delhi NCR and Pune followed in the agritech funding race in terms of number of funding deals during 2014 to HI 2020 Bonga (on The Base Of Number Otrunding Beals bein ‘Source: Ine@2 Plus Analysis Note: Based on disclosed funding til HI 2020 Agritech Funding By Business Model B2B Agritech Model Attracts Greater Investor Interest Funding in agritech B28 models has grown at a CAGR of 96.5% from 2015 to HI2020 with a total of $229.1 Mn invested as 2800 ‘Source: ne42 Plus Analysis Note: Based on disclosed funding sl HI 2020 2020 Agritech Startups In B2B2C Segment Grabbed The Most Number Of Funding Deals Between 2014 And H12020 82B2C funding in India grew at a CAGR of 24.2% in the past five years i x ‘Source: Inca? Plus Analysis Note: Based on disclosed funding tH 2020 Agritech Funding By Funding Stage Despite Covid-19's Impact, Late Stage Deals Dominated Agritech Funding Growth stage funding grew by 55.6% while late-stage deals contributed to over half of all finding in 2020 so far 00 mt 2000 B mo a ; a 7 To oe 7217 218 208 29 (merge Stage Seedstage Grown Stage Bl Late Sage ‘Source: Inc2 Plus Analysis Note: Based on disclosed funding sll HI 2020 Seed Stage Startups Growing In Prominence In Terms Of Funding Deals Seed stage funding has grown in 2020 after a lackluster 2019 for the agritech sector 1w0.0% 00% 2014 2018 2018 207 2018 28 seca stoge Ml tote stoge I Crownstage ML srsge stage Funding Deas shor (in) g 2 ‘Source: Inca? Plus Analysis Note: Based on disclosed funding tH 2020 Competitive Landscape And Financials Of Agritech Startups Market Linkage Startups: A Landscape ee ee Wrote oa hana Cinbo yerbad an tengay ((oxico 20 s00-800 we sesote i ‘6 . chon on Sungram rina Aka engin ont ninjacart 201 2000-2100 1985, framebat eCazZeN a9 tweets renner wiftermiic ama we \esh No Manton eran Mahara sup ga retro Sept San ea Qe 800 2 uma sng ‘Source: Company Websites, Industry Articles Market Linkage Startups: Financials Ecozen Stands As An Outlier With Its Profitability In FYI9 WayCool dominated the market linkage market in terms of revenue with $27 Mn in FYI9. ‘origo commoatios Ninjcort I space & water afcieney (G) rover SK raster tston a fs) cacunaareneipia ys & & Po Zero agricultural runoff Grows all year around est use of tech such as cloud based data analytics Encourages commoners to take up farming Reduces carbon footprint Analyst Recommendations Analyst Recommendations ‘Agrtech growth can be accelerated by building a robust ecosystem of multiple stakeholders including startups, technology providers, ‘ogricutural enterprises, research institutions and the government. This wil help dive the Implementation of cross-industry technologies ‘and applications such as fo, data-driven forming, chatbots, drone technology and precision agriculture to increase farm output and overall productivity levels, while maintaining cost efficiency. &. yike Agritech Startups Need To Prove Scalability Startups need to demonstrate scalabiity and higher unit economics in their bid to attract investors, as well as create @ ‘market networ, similar to how digital payments penetration wos achioved. The Push For Digital Literacy Among Farmers Digital teracy within smal and marginal farmers is lacking, which hinders adoption of agritech startup products and services. Companies and institutional retailers nead to incentivize farmers to adopt technology, which will help in habit-formation and create a digital workflow that farmers can familiarise themselves with. Bigger Technology And R&D Investments | trong research and development base or technology innovation is essential to build the foundational blocks of agach evelopment in the US, for instance, farmers have leveraged the strong tech capabilities to create frm technologies Farmers inthe US have moved towards farm consolidation to realise the benefits of technology adoption at scale, even ‘though the US markets heavy tted towards corporation-run farms. One of the ways to close the innovation and technology gops in agtechis by leveraging collaborations with other nations to.rive innovation. india and Breil recently entered into a partnership promoting the exchange of agricultural technologies Cond expertise between both the countries & Cross-Border Collaboration And Innovation a Creating Favourable Regulatory Environment In conjunction with these strategies, government support is essential to create a favorable environment for agritech startups. This will ensure increased availabilty and accessiblity of new-age technology to the farming community and promote agricultural research to bul strong agritech ecosystem. Methodology ‘The report presents the study of datasets related tothe agritech market in ina, which Imples alltypes of segments including faas, precision ‘gricuture, form inputs, market linkage and other segments have been covered. The datasets are collected from both primary and secondary sources. The market size Is calculated by using « bottom-to-top approach for the mojor players, and estimating their share to ‘artive at the overall market Te report presents the study of datasets related to the agritech market in Indio, which means any company offering agritech solutions hos been included. Moreover, investment in agritech startups has been reported based on disclosed investments til December 26,2018. The default base yeor {or calculating growth rata (CAGR ‘is FY2019, unless mentioned otherwise, The segregation of funding stages inthis repor is done on the following basis — seed stage (before pre series A), bridge (twansiion funding rounds tke P-Series , 8c), growth stoge (Series A and 8) and lte stage (Series C and beyond). Glossary Market Linkage: t Includes platforms which connect farm output with the custorner, itis one ofthe most easy ways to take farmers products rectly to the end customer. Also, tech based platforms helping n supply chain management are considered init Precision Agriculture & Automation: Digtl / Precision Agriculture based businesses offers Innovative technology solutions for increasing ‘crop productivity and farming process efficiency Farm Inputs: Providing farmers better access to agricultural inputs at their doorsteps, ithelps farmers to understand the best input product 10 increase the yield and productivity Farming-as-o-Serviee (Faas): Farming as a Service offers affordable technology solutions to forme {fixed cost to variable cost {or efficient farming by converting Financing: Farmers in india struggle to get finance but agrtech based financing startups helps such underserved community of farmers to ‘get loans quickly ‘others: Others includes quality management & traceabilly In order to compute market potential While in funding date, others includes sub-sectors such as Biotechnology, Farm automation, farm inftastructure, hydroponics and others Bibliography tp: muy com[on_in/news/ 2020/06 /inean-agitech-etar-ype-re- cprating-n-e-markt-ulth-an-esimatod-potental-o-us-24-bilion-dolrs-by-2025 up: Inasscominjinowedge-conter/pubicatons/agitech-indio-emerging itp: nvestinae gov n/tean-inda-bloge/emergng-seope-ogr-teeh-inca tp: [community nasscomin/downocd phpZtlo= wp-content uploads attachment8174-ogrtech-n-ndla--emergng-wendsIn-208 pat tp: seats ey or content| amet ey-comen_in[tpis| str-upe/2020/08/ey-ogitech-towords-transforming-indion-ogricuture pal¢dounload itp Mean epdocurent|23049/Ag-star-upe-Knouledge-epor- Hee pal np: wu manoge gov /publation|scusson20papors|MANAGE-Olscussion20P0pe-10 pat nt //maple-ocsorscom/Agrtoeh-ineusy pat itp: /nmoop.gouin/conlerence|docs/Sockground Peper Agi_Sorupepat ntp:/former govin/iotiaetocin/ ta 408 Role200F:200igita20ang20AN.ZOTechnelogles 20 2o;ndlan%2OAgrcutuey 20M 20Tanay2oMahindrUp o itp: ani tnaneaiepres.com inet tee-oF-ogftechin-inea-ove-450-eartups-etracts-thi-rnieh-Rinsing-in-ft-hot-of-2019/1679647) tntp:/ [documents worlbonkorg/curated/en/48041s9828118/pat/Market-Proviloing-ot-Technology-Enabed-Agicuturl-Seros-n-india pat np: ww manoge gov n/publleaion|lscusson20papars|MANAGE-Olsussion20P0pe-10 pat bit://mec-pubestions. beg com/indion-Agrbusiness pat tp: s0cl-Insovtion itachi eninknowledge-hub viewpoint goon-revliion np: wubaln com /contentassets/cb6t0ebib4823bb408670104a280/report_indlan.formings next_big_moment_— nit: tranejovancop.com/ Cite TrnsjovankeportAgrtech_ton_2018pat tp: feackotice pilipcaptalin/Bortotice/Reseorehfies/PC_-_Agreutre_Inputs_Sector_and_Iting_~_Sept_2019_20100808184805 pat tp: em lomelin[ Content /RerearehPopor|{$0c7ca3-0cbe-Aabb-deta-a76bad7a368 pa itp: mens cominduetis/agrultre/our-insights/how-

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