Avendus Agritech Leading Next Decades Tech First V - 221227 - 110048

Agritech
Leading next decade's

tech-first value creation
December 2022
Agritech: Witnessing unprecedented momentum by impacting India’s largest economy
$100bn+ value creation over the next decade
India is one of the largest food, dairy, poultry, acquaculture Farming in India is characterized by relatively smaller farm Agritech is anticipated to drive the next wave of technology-
and fiber crop producing countries in the world, with a total sizes and lower yields per hectare vis-à-vis global counterparts. led impact with a CAGR of ~50% (highest in the technology
production of ~$500bn, making up 15.4% of the world’s This, coupled with fragmented, inefficient supply chains and space) over the next 5 years and thereby addressing a $34bn
production. As the largest section of India’s population (58%) is unorganized retail, lends a uniqueness to the market. These market by 2027. This, given the sheer scale of the agriculture
dependent on agriculture, any positive influence on this sector unique market characteristics have led Indian Agritech players to economy in India, will create tremendous stakeholder value.
benefits various other sectors resulting in multiplier effects on build ‘India-first’ business models with a larger focus and scale The IPO timelines for most of the companies are 3-5 years away.
the economy. on the output market linkage side. The market is also seeing The precursor would be active participation of private growth
‘India-first’ technology innovations in precision agriculture, investors in the sector, replicating the participation seen in
The agri-ecosystem has been a late adopter of technology
quality assessment and digital traceability that can each be a consumer tech-focused companies over the last five years.
due to relatively delayed underlying internet penetration in the
large global opportunity.
hinterlands. Farmers, traders, agri-mandis and wholesalers The report aims to table the key drivers leading to the success
have historically demonstrated a notable lack of awareness While majority of the technology-led players in the Indian of Agritech companies in India and take a deep dive into the
and willingness towards technology usage. In the same period, agriculture are B2B, there are a few interesting outcomes in food crop value chain – pre-production, production, post-
however, Agritechs have laid a solid foundation by building the B2C space as well, covering the entire chain from farm production and allied services and some interesting outcomes
the infrastructure and technology, and have figured the right to fork and thereby accreting a large profit pool. B2B players in dairy, poultry, aquaculture, insect feed and fiber crops. While
business model that can be scaled up and be profitable. like Absolute Foods, Arya.Ag, Dehaat, Farmart, Captain the narrative unfolds, we expect Agritechs to drive as large an
Fresh, Vegrow, Bighaat, Agnext, Bijak among others and B2C outcome over the next few years as consumer e-commerce is
With increased rural India internet penetration and COVID-19
players like Country Delight, Licious are occupying niches and today. We hope that this report offers insights to all including
driving structural changes in the supply chain, the last two
creating immense value within their respective value chain/ Agritechs, investors, agro-based corporates, entrepreneurs and
years have witnessed a sharp turnaround for the sector. We are
sub-sectors in Agritech. Unlike consumer internet/technology stakeholders alike.
seeing an inflection point in terms of technology adoption, rapid
businesses (which have relatively higher gross margins and
scaling of platforms with 10-11x growth (last 3 years), improving Happy reading!
rely on creating consumer habits), it is important for a B2B
economics and a new wave of entrepreneurs also starting to
business to be capital-efficient relatively earlier in its journey.
focus on the opportunity. The $2bn+ capital raised in the last Pankaj Naik, Karan Sharma
Hence, it is encouraging to see some of these B2B Agritechs
2 years (63% of total capital invested) is also a testament to the Co-heads, Digital and Technology Investment Banking
demonstrating healthy economics and capital efficiencies since
increasing interest in this space. Avendus Capital
their nascent stages.
2 Avendus Agritech Report | December 2022

Avendus Capital
India’s premier financial services franchise
171 252 92 25
India’s #1 PE Advisor, 9MCY22
Investment M&A Transactions PE Transactions Cross Border Deals in FY23
(Venture Intelligence)
Banking Deal Value: $14.0bn Deal Value: $20.4bn Transactions Deal Value: $4.0bn
APAC’s #1 M&A Advisor, 9MCY22
(GlobalData)
Wealth AUM Best Independent Wealth Manager India Domestic
$5.5bn 1,889
Management Number of Families Asian Private Banker, 2020 & 2021
and Corporate
Treasuries serviced Highly Best Private Bank for UHNWIs
recommended The Asset Triple A Private Capital Awards 2021
4th Best Private Banking Services Overall

Euromoney Private Banking And Wealth Management Survey 2020
Asset AUM Avendus Absolute Best Indian Hedge Fund, Eureka Hedge Awards Singapore, 2019
$1.3bn 4
Management Return Fund Best Single Country Fund, 18th HFM AsiaHedge Awards Hong Kong 2019
Specialized Best AIF CAT 3 Long Short (2 Years of Risk-Adjusted Returns), 2021
Strategies PMS AIF World Awards, 2021
Avendus Enhanced Best Multi Strategy Fund, HFM Asia Performance Awards 2021
Return Fund
INR 3,200cr+ 60+ INR 1,100cr+ A+

Credit
Unique Transactions Crisil
Solutions
till date Rating
Disbursements till date Book size within 5 years of operation

Digital and Technology investment banking
Pioneers of the new-age economy
Leader in Indian Digital & Tech advisory Long-standing track record of advising prominent Unicorns
150+ 50% 55+ $3,300mn/

7 transactions
$1,750mn+/
9 transactions
$1,465mn+/
3 transactions
$1,000mn+/
8 transactions
$800mn/
3 transactions
Deal closures in D&T Market share1 in Team size, the largest
sector in last 8 years D&T amongst in the country, 4x of
investment banks next peer
$10bn+ 50+ 30+

Undisclosed $600mn/ $500mn/ $450mn/ $395mn/
3 transactions 2 transactions 3 transactions 5 transactions 3 transactions
Aggregate digital & tech Transaction closures $100mn+ transactions

deal value in 30 months in last 30 months in last 30 months
$400mn/ $350mn/ $345mn/ $330mn/ $225mn/
Undisclosed $302mn/ $227mn/ $225mn/ $125mn/

Deeply entrenched in the eco-system
30+ Unicorn clients 200+ network of global growth $3.5bn+ liquidity generated by Annual Avendus India Internet &
trust Avendus as the investors that closely collaborate Avendus for investors/shareholders, Technology Conference that brings
partner of choice with Avendus on Indian tech thereby keeping the fund-flow wheel together 80+ companies and 125+
opportunities spinning for the ecosystem global growth investors
By number of deals done

1

We are the gateway to the Indian tech ecosystem
Connect with
a plethora of
marquee
investors
+more
Advisors to all
major disruptors
in the startup
ecosystem
>$100bn ~$8bn
Total valuation Total deal value advised in FY22
Avendus was the advisor on ~20% of FDI flows into startups in FY22 — a testament to the unparalleled franchise we have built over the years
~50 Deal closures in the past 30 months / 30+ Deals >$100mn
$700mn $805mn $300mn $210mn $135mn $840mn $650mn $440mn $315mn
Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity
Advisor to: Advisor to: Advisor to: Advisor to: Advisor to: Advisor to: Advisor to: Advisor to: Advisor to:
Swiggy Verse Innovation XpressBees Dealshare HealthKart Dream Sports Eruditus Unacademy Lenskart
Jan 2022 Apr / Feb 2022 Feb 2022 Jan 2022 Dec 2022 Nov 2021 Aug 2021 Aug 2021 Jul 2021
$200mn $150mn $137mn $130mn $45mn $315mn $300mn $1,250mn $225mn
Has acquired Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity
Shiprocket Licious Yubi (CredAvenue) Niyo Innoviti FirstCry Simplilearn Swiggy Infra.Market
June 2022 Mar 2022 Mar 2022 July / Feb 2022 July 2022 Apr 2021 Jul 2021 Jul 2021 Aug / Feb 2021
$125mn $108mn $107mn $85mn $45mn $250mn $245mn $185mn $100mn
Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity Private Equity
Sarv
Medibuddy Country Delight One Card Vivriti Capital Simpilearn Zeta Licious Shiprocket Open
Feb 2022 May 2022 July 2022 Mar 2022 Nov 2022 May 2021 Sep 2021 Nov 2021 Sep 2021
Transactions closed in CY22

About the authors
Pankaj Naik Varun Gupta

Co-Head – Digital & Technology Investment Banking Executive Director
» 22+ years of investment banking experience across sectors including Technology, Media, » 13+ years of investment banking experience across sectors including Digital and Technology, EdTech,
Consumer, Healthcare & FS InsurTech, B2B E-Commerce and Consumer Internet
» Previous experience as Head of Technology Investment Banking for JP Morgan India and a stint at » Previous experience as Senior Vice President at BMR Advisors
DSP Merrill Lynch
pankaj.naik@avendus.com varun.gupta@avendus.com
Bandish Shah Rutvik Malekar

Vice President Associate Vice President
» 8+ years of investment banking experience, previously worked at Goldman Sachs » 5+ years of investment banking experience, previously worked at JP Morgan
» Focuses on Agritech and Consumer Internet » Focuses on Agritech and Web3
bandish.shah@avendus.com rutvik.malekar@avendus.com
Ishita Parasrampuria Madhav Maloo

Associate Analyst
» 1+ year of investment banking experience, previously worked at EY » 1+ year of investment banking experience, previously worked at JP Morgan
» Focuses on Agritech » Focuses on Agritech, Content and Gaming
ishita.parasrampuria@avendus.com madhav.maloo@avendus.com
Om Agarwal
Analyst To connect, write to us at:
» Graduated from Ashoka University
» Focuses on Agritech agritechreport@avendus.com
om.agarwal@avendus.com

Introduction to Agritech 9
Food-crop Agritech 17
2.1 Introduction and market overview
2.2 Section deep dive:
a. Pre-production
b. Production
c. Post-production
d. Agri-fintech
e. Integrated platforms
Other Agritech 66
a. Fiber crops
b. Cattle and Dairy
c. Aquaculture and Poultry
d. Insect feed
Global Outcomes and Exit 77

Opportunities
Summary and Conclusion 83

Indian Agritech
Globally unique, Bharat-first $34bn opportunity
Global factsheet India factsheet
$45bn 5,500+ $3bn 17

Funding Transactions Funding Players with $100mn+ GMV
18 600 1,500+ 15mn

Unicorns Acquisitions Companies Farmers benefitted by Agritechs
Source: Tracxn, Pitchbook, Avendus research, All data as of Sep 2022; Funding and transaction data since 2010

India is among the top 4 food-producing nations in the world
Agriculture1 : $493bn
Food Crop
Food Crop
640MMT 3rd in cereal production (11% share)

1st in pulses production (25% share)
150mn 86% of farmer population owns
less than 2 hectare of land
Production Farmers
155mn ha 2nd largest arable land in world, only

2mn hectare behind USA2
$28bn Among the top 10 foods exporters in
the world since 2019
Arable land Exports3
Farmer
$289bn
Production Engagement4
Fiber Crop Fiber
Crop
8MMT 1st in cotton production (25% share)
1st in jute production (60% share)
15mn One out of every four hectares
planted for cotton in the world is
Dairy Farming Poultry Aqua-
2nd in silk production (18% share) in India
Farming culture
Dairy
Farming
210MMT 1st in milk production (23% share)
and bovine population count (300mn)
80mn Carried out alongside crop farming
in rural areas as a sustainable
income source
Poultry
Farming
122bn 9MMT 3rd largest producer of eggs
8th largest producer of meat
50mn A large proportion of this
population is engaged in
Eggs Meat
backyard poultry farming
Aqua-
culture
15MMT 2nd largest producer of farmed
5mn 10x engaged in the processing
$169bn $35bn fish (8% share) value chain
Sources: Indian Council of Agricultural Research (ICAR), Food & Agricultural Organisation (FAO), Ministry of Agriculture | Note: Rank denotes world ranking for India, GVA: Gross Value Added | 12022 GVA has been estimated basis 2021 GVA considering historical 5-yr CAGR which includes GVA of Crops, Livestock,
Fishing and Aquaculture | 2Includes land under temporary crops, temporary meadows for mowing and pasture, land under fallow. Land abandoned for cultivation is excluded | 3Basis historical CAGR on FY2021 export numbers | 4Non-exclusive figures for each category of farmers
Multiple structural issues prevail across the various stages in agriculture
Agritechs are addressing key voids across the value-chains through innovative technological capabilities
Pre-production Production Post-production
» Limited farmer knowledge and lack of access to » Insufficient information sources for environmental » Unfair pricing mechanism limiting farmer remunerations and
quality inputs, i.e. seeds, chemicals and feed factors, soil and crop health credit worthiness
Challenges in » Price inefficiencies for inputs and machinery on » High feed costs with unscientific farming and » Lack of adequate supply chain infrastructure
agriculture account of multiple layers rearing practices for poultry and aquaculture
» Inefficiencies such as leakages, wastages and intermediaries
» Unstandardized cattle trading market with high
» End consumers unable to find the right balance of quality
information disparity
and price
» Availability of right inputs, tailored to individual farmer » Mitigating weather variations through precision » Supply demand matching and aggregation of produce
requirements farming enabling higher realizations
Select Agritech
solutions » Digitized genetic records, cattle trading and livestock » Early disease detection using IOT and data-driven » Modern warehousing and quality assessment using deep tech
monitoring crop advisory and image recognition
» Sensor-based individualized monitoring and feed » Complete traceability, QC ensuring high quality for local
control for poultry, cattle and shrimp farms market and exports
» Inputs for food crop: 15-20% GM/Take rate on » Subscription model with upfront device sales » Food crop: 10-25% GM/Take rate on transaction
transaction
» Monetization through contract farming, market » Subscription model/ take rate on produce assessed for
Monetization
strategies » Cattle trading: 10% take rate on cattle transactions linkage (including global) on agri produce quality assessment
» D2C delivery subscription model at 35-45% GM
Source: Avendus estimates | Notes: QC: Quality contro l GM: Gross margin

Agritech explosion is inevitable
With a massive underlying market, it has one of the largest potential for technology adoption and value creation
Tech penetration as a %
of total market Underlying market size1 ($bn) Number of unicorns Valuation of unicorns ($bn)
Retail 5% 58 1,150 16 66
Lending 2% 12 658 7 15
Logistics 2% 6 270 4 6
Insurance 2% 2 110 3 8
Education 2% 2 94 7 34
Media &
Entertainment
16% 16 75 6 25
Food service 12% 6 45 3 18
Used cars 13% 5 40 4 8
Agriculture 0.8% 4 493 0 0
Tech-first Traditional
Source: Avendus estimates; Lending refers to assets under management of SME lending (Entity level credit exposure below INR 100cr) and consumer lending other than home and auto loans, Insurance includes GWP of life and general insurance, Education excludes K-12 tuition fees, Media & Entertainment
does not include illegal gaming and betting, used cars include used passenger cars and used two-wheeler market, Food service denotes out of home food consumption, Commerce refers to non-food retail consumption | 1Tech-first market size includes market size of global players like Amazon, Meta, Google
etc., they are are not factored in Number of unicorns and Valuation of Unicorns count
We have seen large outcomes globally, tackling multiple challenges
Backed by some of the largest and deepest pools of capital
Agri-inputs marketplace Precision farming platform Inventory-led B2B platform Manufacturer of drones
Valuation $4bn Valuation $1bn Valuation $7bn Valuation $1.5bn

Total funding $744mn Total funding $225mn Total funding $1,300mn Total funding $228mn
Select investors Select investors Select investors
Select investors
Operator of vertical farms B2B online trade platform
Valuation $2.3bn Valuation $2.7bn

Total funding $477mn Total funding $123mn
Select investors Select investors
Operator of vertical farms Integrated aquaculture platform
Valuation NA Valuation NA
Total funding $387mn Total funding $140mn
Select investors
Select investors
Source: Tracxn, Pitchbook, Industry Research; Ilustrative list of companies / players

Indian Agritech is garnering momentum
Larger number of recent growth stage funding unlocks future value potential
Funding in Agritech in India ($mn)
Series D and beyond

45
Series C
Series B
250+
Series A
Seed 1,222
Number of funding rounds1
30
27
Agritech startups
21 funded till date2
19
12
8 796
6
397 403
63%
187 Of total capital has been
124 injected in the last 2 years
33 30
2015 2016 2017 2018 2019 2020 2021 9M 2022
Source: Tracxn | 1Series A and upwards rounds have been considered | 2Includes seed funding, angel and Series A+ investments and grants

New-age Agritechs will potentially drive $34bn of GMV by 2027
Agritech GMV ($bn) Select Agritech companies
$34bn
8x
25 Food crop
$4bn 1.5 Fiber crop

3.0
3.0 Cattle & dairy
0.2
0.2 2.0 Poultry
0.3
0.3 1.5 Aquaculture
2022E 2027E
Other allied opportunities in agri value chain with a potential to drive massive outcomes by 2027:
$8bn Trading/auction platform $10bn Farm gate warehousing $5bn Quality assessment $3bn Agri fintech
Agri produce 0.2-0.5% as commission Agri commodities 1-2% monetization Agri produce 3-5% take rate or Loan disbursals 6-8% of net interest
GMV transacted under management pass through subscription charges margin or commission
Source: Avendus estimates

Indian Agritech in next 5 years: Large socio-economic impact and value creation
40mn 100%+
Farmers/users positively Potential increase in total
impacted farmer income*
omic impact
ocio-econ
S
50%
GMV CAGR
2-3
Liq
n
tio
uid
ea
Public listings
ity
e cr
8-10
Valu
Unicorns
2027
Source: Avendus estimates | *includes income from non crop sources such as livestock and fisheries

Food crop Agritech
(FoodAgtech)
2.2 Section deep dive:
a. Pre-production
b. Production
c. Post-production
d. Agri-fintech
e. Integrated platforms

FoodAgtech
India in 2027
$341bn 25mn 100%

Agri value chain Farmers benefited Potential increase in
disruption potential by FoodAgtech farmer incomes

Despite being a core sector for India, agriculture suffers from low productivity
43% of the Indian labour force is dependent on agriculture but productivity significantly lags vis-a-vis other developed and
developing economies
50% 3.2
India has the highest dependence
% agri work force to total labour force
on agriculture amongst major economies, but

$2.3k
40%
5.2 suffers from substantially low realizations per
6.0 hectare and per agri-employed person
30%
$3.7k
$5.0k
4.8
8.1 XX Ton cereal yield per hectare per year

20%
XX Output/agri-employed person1
$8.3k
10%
$80k
% agri contribution to GDP
4% 8% 12% 16% 20%
Sources: World Bank; United Nations FAO, data based on Dec 2019 | 1Calculated as total GDP contribution by agriculture divided by the total number of people employed by agriculture sector

India’s agri value chain is highly traditional and ripe for disruption
Comparison of global agricultural value chains
Bilateral oligopolies
Aggregated
» Few to no intermediaries
» Operates through cooperatives & industry groups
» High output yield with advanced mechanization
» Efficient supply chains leading to lower wastage
95% 180 89%
Food distribution
(Distributors and retailers)
Producer-dominated value chain

» Export oriented due to high-quality produce
» High yield through implementation of technology
» High concentration of produce within a select farmer
Fragmented markets set/collective
» Low production outputs due to small size of farms
» High presence of intermediaries 75% 70 59%
Disaggregated
» Informal data and credit flow

» High government assistance
45% 1.1 2% Farm mechanization (%) Avg. farm size (ha) % modern retail in grocery
Disaggregated Aggregated
Food production
(Farmers and processors)
Note: Analysis based on study of larger supply chains in the country | GVA: Gross Value Added | Sources: Agriculture census, Rabo Bank, market publications, CIPET, Food and Agriculture Organization, Santander, Euromonitor

Traditional agri-supply chain is complex and elongated with several participants
disjointly running operations
Wholesaler
Farmers Village Food End consumer

trader processors
Interstate
mandi/trader
Retailer/
Local mandi Wholesalers HoReCa
Wholesaler
Food
FPOs/FPCs
processors
Interstate
mandi/trader
FPOs/FPCs Village trader Local mandi Interstate mandi/trader

Farmer collectives to leverage Aggregator of produce at village Government markets or bazaar Facilitating trade across different
economies of scale in production level who then transports for selling produce with states since production centres
and marketing produce to nearby market commission agent (arhtiya) and consumption centres
acting as facilitator of trade are distant
Source: Avendus research, HoReCa : Hotels, Restaurants and Catering | FPOs-Farmer Producer Organisation, FPCs-Farmer Producer Company

Various challenges across traditional value chain have led to substantial margin leakages
Machine and human labor Inefficient price realisations and dynamics Logistics, quality and demand challenges
» Crop production largely reactive to environment and soil conditions » Dependence on middlemen in mandis and » Higher wastages during transport and handling
» Labour intensive and dependant on machinery typically rented immediate need to sell produce during auctions » Multiple middle men with inefficient quality leads
from large farmers » Manual quality testing leading to sub-optimal to higher retail price
price and long delays
» Predatory financing at PoS to provide for next
cropping cycle
13%
Seeds, fertilizers and pesticides 100%

25%
» Largely dominated by agrochemical
conglomerates
» Mis-selling due to biased incentive
structure by distributors
9%
3% 10%
11%
12%
29%
7%
10%
Net Input cost Labour Farmer Mandi Trader Logistics Wholesaler Last-mile costs Wastage Price to
income to cost price commission/ margin and margin and retailer customer
farmer labour packaging margin
Source: National Bank for Agriculture and Rural Development (NABARD) | Directorate of Economics and Statistics | PoS: Point of Sale | Note: The margin profile created basis median costs across Potato, Rice, Wheat, Onion and Tomato value chain. Excludes any additional farmer income from labour and
machinery rental, animal husbandry and insect farming
FoodAgtech value chain is broadly divided into three phases
Farm mechanization Farm analytics & agronomy advisory Market linkage & supply chain solutions Agri fintech
Automating farms by renting / use of machinery, Agronomy advisory, from pre sowing to harvesting, Direct access to farmers for farm Fintech providing credit facilities
drones, robots offered to farmers using data analytics produce and insurance products to
Optimized warehousing solutions farmers and agri ecosystem
participants
Farm inputs platform Controlled Environment Agriculture Farming as a Service Precision agriculture Quality management & traceability
Marketplace for access to Use of greenhouses, indoor Contract farming Crop level personalized Use of spectrometry, computer vision,
seeds, fertilizers and pesticides farming using hydroponics, arrangements with buybacks intelligence using IOT sensors, image analytics, sensors, AI for quality
aeroponics by leveraging precision drones, satellite imagery and check, grading, and traceability
agriculture use of biologicals in place
of chemicals
Source: Avendus research | Hydroponics - Technique of growing plants using a water-based nutrient solution rather than soil | Aeroponics - Process of growing plants in the air or mist environment without soil or an aggregate medium

FoodAgtech players can capture a large portion of Agri value chain margins,
simultaneously driving up the farmers net income
Potential savings
FoodAgtech opportunity FoodAgtech opportunity FoodAgtech opportunity by FoodAgtech
» Predictive solutions based on weather and sensor data » Better realisations through improved » Lower wastage through better supply chains
» Productivity gains through controlled environment conditions quality testing » Tighter product controls to ensure higher
» Use of IoT and AI for effective spraying, irrigation, » Leveraging warehousing to reduce price and reliability to enterprises
nutrient delivery demand uncertainty » Direct to consumer with higher price realisations
» Access to sustainable finance and quality control
FoodAgtech opportunity
» Customized crop-specific scientific solutions 100%
» Enhanced understanding of potential crop output 5%
» Improved credit terms
18%
4%
1% 8%
Agritech
Share 7%
15-20%
10%
20-25% 5%
35-40%
Net Input cost Labour Farmer Mandi Trader Logistics Wholesaler Last mile costs Wastage Price to
income to cost price commission/ margin and margin and retailer customer
farmer labour packaging margin
Source: National Bank for Agriculture and Rural Development (NABARD) | Directorate of Economics and Statistics | Note: The margin profile created basis median costs across Potato, Rice, Wheat, Onion and Tomato value chain. Excludes any additional farmer income from labour and machinery rental, animal
husbandry and insect farming. Value-chain adjusted for ~10% increase in retail price to consumer through grading and sorting, and private labels
PRE PRODUCTION PRODUCTION POST PRODUCTION
Pre-production: Improved access and higher quality of inputs have drawn farmers to
increasingly look at FoodAgtechs as viable alternatives
Pain points FoodAgtech disruption Disruptors1
Non-uniformity of input prices Direct partnership with leading Marketplace with input retailers Savings of 8-12% in input
across locations as well as SME manufacturers to 2,500+ producers providing costs by providing farmers with
providing improved access to right wide assortment of SKUs access to all input materials
3+ tiered value chain leading to a
inputs to farmers/retailers solving for distribution, credit
higher price point
Lack of adequate farmer

Quality assurance on inputs and Technical advisory and Delivers increment in productivity
knowledge and incentive to
input advisory to assist farmers automated disease detection by 30-40% by leveraging local
retailers leading to inefficacious
with right inputs for their crops for pre-harvest challenges entrepreneurs and providing
input usage
advisory to farmers
Lower mechanization with limited

access to resources Access to equipment and tech to Reduction in pesticide use Offers end-to-end farm
lower cultivation cost by 40% and time utilised mechanization services on
for weeding by 85% with AI- pay-per-use basis
powered robots
Source: Industry research | SKU- Stock Keeping Units | 1Illustrative list

Production: Increasing adoption of technology and alternate data sources to drive

efficient outcomes
Over-reliance on informal sources Provision of cheaper and innovative Agri fintech offering credit for Agri loans to farmers for
of credit leading to higher interest financing products for farmers and online and offline transactions input/output procurement,
rates and debt traps other ecosystem players to all agri value chain players infrastructure development
through FPOs
Access to real-time intelligence Cost reduction by 15%, Farmer centric networking

Asymmetry in information access
and solutions through big data, AI, higher yields by 20% and platform allowing for peer to
leading to losses and lower yields
satellite imagery, and data analytics improvement in quality through peer advisory and discovery
real-time advisory for services
Heavy reliance on chemical Use of deep tech and precision Use of precision agriculture Controlled-environment agri
fertilizers, excessive water usage, agriculture techniques to improve techniques to replace farms for superior produce with
impacting quality and yield yields and quality chemicals with biologics, precise input usage, 95% less
improving yields by 50% using water use and 30x yields
far fewer resources
Source: Industry research | FPO – Farmer Producer Organisations | 1Illustrative list

Post-production: Tangible benefits realized from digitized farmer networks, tech-focused

supply chains and deep-tech quality check mechanisms
Effective pricing mechanism by Connecting farmers to food Connecting farmers to

Lower realizations to farmers elimination of intermediaries institutions/wholesalers by retailers/HoReCa by inventory
because of wastages and multiple leading to improved market focusing on supply aggregation control reducing wastages and
value chain participant leakages access to farmers while reducing and improving market access improving farmer realizations
inefficiencies in the value chain by 20%
Building in transparency and Retailer/local entrepreneur- B2B marketplace-based

Sub-optimal demand supply match
trust-based platforms for supply led model for demand and model leading to supply chain
on account of fragmented producer
demand matching supply aggregation leading efficiencies through supply-
and consumer base
to improved access and demand matching
price discovery
Limited resources and infrastructure Solutions focused on providing Spectroscopy and AI Bringing services such as
in supply chain leading to losses, easy access to supply chain based solutions for quality storage, quality assaying closer
lack of transparency and price resources for all stakeholders in assessment enabling instant to the farm gate while enabling
uncertainty the form of quality assaying and testing and farm to finance and market linkage
storage fork traceability
Source: Industry research | HoReCa: Hotels, Restaurants and Catering | 1Illustrative list

India stands on the cusp of an Agritech revolution
Rural India poised to lead the next 500mn Indians going online and the predominance of agriculture in rural India makes it ripe for
tech adoption and transformation as with other sectors in the past
Rapidly rising rural internet &

smartphone penetration rate Combined with structural growth tailwinds amidst an improving institutional setting
Adoption of digital
Rural internet penetration
Rural smartphone penetration
COVID-19 has driven a transformative Rising consumer awareness, willingness technologies in
68% shift in the industry to pay for quality produce
Bharat, increasing
37%
» Breakdown of traditional distribution channels
introduced farmers/FPOs to digital marketplaces for
» 36% y-o-y growth in domestic organic
food production on the back of increasing
private capital
29% last-mile delivery of inputs and farmgate pickup of domestic demand interest, strong
13%
outputs, thereby accelerating network effects
» 33% consumers willing to pay upto 25% government
» Lockdowns drove adoption of online agronomy and
farmer-oriented social media
more for organic produce*
schemes and
2016 2021
consumer
Digital adoption accelerated by awareness
COVID-19 in many Bharat First Apps
Increasing interest of private capital Strong, multi-pronged are a potent
Number of active users (mn)
500
Pre-COVID1
government impetus
combination
Post-COVID » 63% of the total capital injected in Agritech has been » ‘AgriStack’ (in collaboration with Agritechs)
1.7x in the last two years to boost access to credit, crop info (80mn+
database)
300 » $1.2bn+ raised by Agritech companies in 2021, 3x
13x
compared to previous year » Upto 100% subsidy to promote ‘Kisan
100
8 drones’ uptake by farmers
Content E-comm » Large FoodAg participation in eNAM (Arya,
Bijak, Intello Labs); Govt fund for Agritech
startups in pipeline
Sources: Tracxn, Avendus research, FAS USDA, ASER | Note: FPO – Farmer Producer Organisation | 1Pre-COVID refers to March’20 while Post-COVID refers to March’22 | *Rakuten Insight survey (46k respondents)

FoodAgtechs in India are creating significant impact having built a solid foundation
COVID-19 has been a huge tailwind to bolster the importance of technology-led agricultural processes
Clear breakout in the last 2 years after a muted initial phase Tangible results with the evolution of FoodAgtech
Total FoodAgtech GMV1 ($bn)

» Iterated, pivoted and struck the right » Built the tech stack for connecting » Deployed a micro-entrepreneur model
business models for scalability and path and providing online crop advisory for last-mile delivery of services and
3.0 to profitability to farmers personal connect with farmers
2mn+
Food-crop Agritechs with GMV >$50mn # of micro- Farmers
19 entrepreneurs (k) impacted (mn)
100 2.5
Monthly active farmers engaged by
10-11x
4 0.7
2
0
2015 2019 2022
» Developed deep-tech based hardware » Pioneered app-based booking of » Re-engineering supply chains
and software solutions for assaying, warehouses with digital tagging and to reduce wastage and increase
traceability, spraying, etc. tracking of produce produce quality
3-4x 0.3
60mn+ $2.5bn 50%+
<0.1 Datapoints collected to enable quality Grain AUM under Reduction in handling losses by
testing in 1/100 of time by
2015 2019 2022E
Sources: Newsrun, Tracxn, Avendus research & estimates | 1FoodAgtech GMV excludes GMV of produce transacted through pure trading/auction platforms

FoodAgtech is a $25bn GMV opportunity by 2027
While market linkage is the largest value creation opportunity in FoodAgtech, huge opportunities exist in other service offerings as well
FoodAgtech has one the largest addressable markets

in terms of GMV to capture and create value (Figures in $bn) Massive incremental opportunities exist in other services in the value chain
Trading/auction platforms
FoodAgtech FoodAgtech
addressable market size
$8bn+ Supply demand matching and counter party risk mitigation
GMV of produce
through digital platforms
0.2 transacted by 2027 0.2-0.5% monetization as commission on transactions
Farm gate warehousing

1% $3bn
$209bn
2022E
$10bn+ Enabling digitization of grains thereby aggregation and market

Agri-commodities under
linkage for produce along with financing
2.8 management by 2027 1-2% monetization with upsides for value added services provided
8x
1.7 Quality assessment
$5bn+ Quality checks and traceability at every point in supply chain

2027E
$341bn 3-5% monetization on take rate basis or subscription models with

7% $25bn GMV of produce to
pass through by 2027 potential for market linkage
23.3
Agri fintech
$3bn+ Innovative and digitally enabled financial products for farmers

Inputs platform Loan disbursals
left out of the formal credit system
by 2027 6-8% of net interest margin or commission-based monetization
Facilitated output linkage
Source: Avendus Estimates, National Bank for Agriculture and Rural Development (NABARD), Directorate of Marketing & Inspection (Ministry of Agriculture and Farmers Welfare), Agriculture Census

FoodAgtechs have iterated on business models with varying levels of success
Major considerations by Agritechs weighing service and category offerings
Service offerings Category offerings
Integrated offerings Process focused Perishables Non-perishables
Act as a single PoC for the Benefits from a focused High margins due to lower Slightly lower margins with
FoodAgtechs have While non-
farmer across the cropping approach resulting into a capital cycles (10-20 days), longer working capital
cycle leading to higher stronger moat and adoption largely followed a shorter value chains and end cycle (>30 days) and more perishables is a larger
engagement process focus to consumer’s focus on quality intermediaries TAM, the presence
establish a moat of intermediaries
Larger TAM with larger Unique moats lead to and gradually Broad SKU requirement Lower crop variances allow working on
monetization opportunities higher paying potential diversify to offer implies effective greater reach with minimal trust along with
due to bundling of and opportunity to expand serviceability to organized value chain variances
products/services services globally an integrated customers government price
platform controls have been
challenges that
Challenging to service Sector focus limits potential Higher losses due to Lower wastage, less
varying demands of each to scale perishability and handling stringent supply chain FoodAgtechs are
stage of production necessitate stringent supply requirements with ability trying to address
chain specifications for WRF for capital needs
Source: Avendus research | PoC: Point of Contact | WRF: Warehouse receipt financing | GTM: Go-to-market | TAM: Total addressable market

Key parameters to create a sustainable FoodAgtech outcome in India (1/2)
FoodAgtechs are addressing pain points of diverse stakeholders, focusing on different parts of the agri produce supply chain
End customer Institutional buyers Wholesalers/Traders Retailers/HoReCa Direct to Consumer
Buyer Limited buyers with high order Large buyer base with high order Fragmented buyer base with Lowest order values with high
characteristics values and quality requirements quantities which benefit from lower order values repeat behaviour and highest
sorting and grading quality requirements
Value chain margins Low ability to negotiate margins Negotiate optimal margins Quality and sorting key to Convenience and quality
and pricing and key counterparty risk, limited through market discovery achieving higher margins assurance commands the
pricing power highest margins
Variety of SKUs Very focused SKU requirement Require limited SKUs Require large variety of SKUs in Require large variety of SKUs in
to service stock at all times stock at all times
Predictability of High predictability of demand Moderate predictability Irregular purchase behaviour Irregular purchase behaviour,
demand of demand dependence coupled with varying but highest opportunity to price
quality requirements the customer
Cost factors Lower wastages and logistics Lower wastages and logistics cost High wastages and High wastages, last-mile
(warehousing, costs due to formal arrangements logistics costs logistics and customer
wastage, logistics, acquisition costs
etc.)
Large opportunity to build a capital efficient outcome by leveraging technology Requires high reliability, servicing Highest margin opportunity
and building deeper relationships with farmers multiple crop value chains and coupled with tighter
control on logistics and wastage supply constraints
Source: Avendus research | SKU- Stock keeping units

Key parameters to create a sustainable FoodAgtech outcome in India (2/2) Plotting being Check
Current financial metrics for FoodAgtechs vary depending upon their business model and category segmentation
Perishables Non-
(Fruits and Perishables What this means for FoodAgtechs
vegetables) (Cereals)
Gross margin » B2C-focused FoodAgtechs can boost margins post habit-creation by

12% 25% 7% 15% lowering discounts, gaining through lifetime value
= Revenue less cost of goods FoodAgtechs
» Building sustainable margins early on is critical to price sensitive
B2B serving FoodAgtechs will need
» Improved product mix coupled with white label/private label and to tweak
export opportunities to act as levers to boost margins business
Contribution margin » Efficiencies achieved at scale leading to reduction in logistics costs models
= Gross margin less other
(15%) 3% (12%) 3% and wastages towards a
variable costs essential to » Local entrepreneur approaches have observed lower quality issues sustainable
operations with higher trust in the brand
margin profile
Capital efficiency » Asset-heavy models requiring investment in warehousing and higher to create
0.2x 6x working capital have lower capital efficiency ratios
= Current annualized GMV/ a sizeable
Total capital raised » Higher gross margins (at 20% to 75%) in other consumer tech
sectors1 allows marquee B2C players to operate at capital efficiency impact and a
ratios as low as 1x. Such ratios are unsustainable in FoodAgtech large outcome
considering the relatively lower margins
Source: Avendus research | 1 Consumers tech sectors include D2C brands, Online travel, Edtech and Content

Our field visits to India’s key agriculture hub highlights vast potential for Agritech
Lasalgoan: Asia’s largest onion marketplace (~30% of India’s onion production)
Price discovery Market making Storage
» APMCs display previous days price range on notice boards » Onions are sold in an open auctions with visual inspection for » Onions are majorly harvested in two seasons, necessitating
from all nearby markets quality; an entire year of farmer’s efforts is priced at auctioneer’s good storage facilities
» Farmer collectives have automated services on WhatsApp discretion within 2 minutes » Traders aggregate and sort produce in open air sheds
Incumbent
for price & volume traded on local markets » Farmers often unload a large portion of produce on ground, (exposed to weather conditions leading to moisture losses)
practices
» Large traders frequently manipulate local volumes traded leading to some amount of wastage » Manual bookkeeping leads to lack of formal data for crop loans
to influence prices » Traders operate through a paper invoice system with manual » Mandi Traders operate at 4-5% margins
» A large portion of the transactions happen below reported settlement through main mandi office. Transaction settlements are
market rates 1-2 days post selling of produce
» Farmers believe mandis act as gatekeepers to prevent being
fleeced by rogue traders
» Country-wide price discovery » Buy back with LEs* for price stability and lower handling losses » Farm gate warehousing to formalize crop stocks across geographies
potential
Agritech
» Establish trust layer for smaller traders and farmers » Quality testing within seconds to enable standardization » End-to-end traceability
» Digitization for higher transparency and faster credit disbursals
Source: Avendus field work | APMC: Agriculture Produce Marketing Committee | Mandi is physical managed marketplace regulated by the government | *LE: Local entrepreneur

FoodAgtech landscape across major sub sectors
Integrated players
Farm inputs platform Farm analytics & agronomy advisory Quality management & traceability
Precision Agriculture Supply chain solutions
Farming as a Service (FaaS) B2B market linkages

Input testing services
Domestic Cross Border
Controlled Environment Agriculture
Farm mechanization B2C market linkages
Financial services

FoodAgtech
Pre-production

Agri-inputs is a $25bn market, dominated by traditional incumbents
Fertilizers Agrochemicals Seeds

(10-15% of crop cost) (3-5% of crop cost) (7-10% of crop cost)
Major components » Urea (High subsidy) » Pesticides » GMO

» NPK » Fungicides » Organic/Non-GMO
» DAP » Herbicides
» SSP, MOP » Others
Gross margins 25 – 35% 35 – 45% 40 – 50%
Addressable market size ($bn)

15 7 3
Market characteristics
Organized
Product range
Competition
Addressable by Agritech
Basis Urea pricing and distribution regulated by High influence of agronomy advisory at the Larger involvement of private sector,
government, licensing requirements retail level unorganized market High/More
Key players Moderate
Low/Less
Source: Industry research, Broker research, Avendus estimates; Notes: NPK - Nitrogen Phosphorus Potassium, DAP - Diammonium Phosphate, SSP - Single Super Phosphate, MOP - Muriate of Potash

FoodAgtechs are disrupting the input industry; solving for fragmented market,
substandard quality inputs and limited farmer knowledge on inputs
Fragmented market Substandard quality inputs Limited farmer knowledge on inputs

» Relatively higher input prices for farmers because of » Limited assortment of inputs with retailers leading » Climate change and pest/insect resistance increasingly
Challenges on large number of intermediaries to delays in access to time sensitive requirements affect smallholder farmers with inadequate knowledge on
farm input side farm inputs
» Thousands of small agri input manufactures serving » Substandard/adulterated products on account of
millions of farmers leading to limited access and profiteering motives of the retailers » Lack of reliable, timely advice on inputs to be used in
inefficiencies in supply chain production leading to lower yields
10k+ Manufacturers 150k+ Distributors and dealers 1mn+ Retailers 150mn Farmers
Manufacturer Distributor Dealer Retailer Farmer
Local Entrepreneur-led
» Digitization of local agri input retailers while solving farmer distrust with new platforms
» Providing advisory services to recommend right farm inputs
FoodAgtech B2B input marketplace

disruption » Agri retailer-focused solutions solving for access and efficiency
» Disintermediation by linking manufacturers to retailers
Direct to Farmer
» Order aggregation using mobile apps or call centres
» Disintermediation of traditional distributor-to-retailer model
Source: Industry research

Key business models and companies within pre-production
Business model for input platforms Value proposition for farmers
Both asset light and capex heavy Omnichannel customer acquisition Lower prices with relative ease Valuable advisory on input
models exists with a GM/take through app, call center, feet on of fulfilment suitability & usage including
rate of 15-20% street or retail stores content, blogs, Q&A features
FoodAgtechs usually offer free agronomy advice throughout the cropping lifecycle as a gateway to acquiring farmers and
monetize by sale of products and services
(Year founded) Description Scale Total Funding ($mn) Select investors Key differentiators
B2B marketplace connecting » Works across 500 districts 12 » Wide catalogue to cater to all needs of retailers
agri input manufacturers
2020 » 2,500 manufacturers » End-to-end platform with solutions for distribution,
and retailers
catering to 170k+ retailers credit, logistics and marketing needs of input
manufacturers and input retailers
Other FoodAgtechs focusing on agri inputs

(covered under Integrated players section)
Source: Company information

FoodAgtech
Production

Localized tech interventions during production are pivotal to modernize Indian agriculture
Challenges on production side FoodAgtech disruption
Dependence on monsoon
Monitoring and control of
» 48% of cultivated land is irrigated with 7% under micro irrigation leading to
temperature and humidity
losses on account of erratic rains
with data-led approach
» Extreme weather events damage 6% of the cropped area annually
nt ion
te r ve
y in
n o l og
Use of chemical-based inputs
f te ch
l o
» Use of conventional synthetic and chemical-based fertilizer and pesticides
g leve Replacing conventional inputs with biologicals to
spreading toxicity and impacting long-term productivity of farms e asin reduce pollution, costs while maintaining yields
Incr
Inefficient information sources on crop health

Imaging-based solutions Continuous monitoring of soil, micronutrient, temperature and crop health related
» 15-25% crop losses due diseases and pest attacks
for timely disease parameters using IoT devices and sensors with recommendations for right and timely
» Lower and untimely pesticide usage at 300gm per ha as against global
detection and solutions inputs application
average of 3kg per ha
Non-scientific use of inputs Recommendations

» Increasing inputs costs leading to lower incomes on appropriate input Lower inputs costs and improved yields on account of precise dosage of agrochemical
» Skewed usage of fertilizers towards urea on account of heavy use based on satellite usage based on IoT and AI integrated cropping advisory
government subsidies imagery data
Farm analytics and Precision Farming as a Controlled

agronomy advisory agriculture Service Environment Agri.
Source: Avendus research, Ministry of Agriculture & Farmers’ Welfare

Varied business models are adopted by production FoodAgtechs
Farm analytics and Precision Farming as a Controlled

agronomy advisory agriculture Service (FaaS) Environment Agriculture
Description Detailed advisory from pre-sowing to Crop level personalized intelligence Contract farming arrangements with Indoor agriculture to protect from outdoor
harvesting using weather and satellite imagery using IoT, sensors, and AI buybacks by leveraging precision agriculture elements and maintain optimal conditions
Monetization Provides advisory on subscription basis Engaging with enterprises on Engaging with farmers by advising Owned greenhouses or farmer
strategy or freemium basis (monetizing through contractual basis or with farmers on operations, monetizing through partnered greenhouses on revenue
other services) on subscription basis sale of produce share basis
Level of tech Data aggregation and analysis Advanced network of tech system Data-driven approach with network of IOT Controlling growing conditions and crop
involved to derive insights providing recommendations devices providing actionable outputs lifecycle patterns variables using tech
Market Low/Zero subscription charges Upfront cost of hardware and monthly Minimal investment from High upfront capital investment
potential leading to higher penetration charges impacting adoption farm community and long gestation periods
Disruptors
Source: Avendus research

IoT-enabled agriculture to supplement mechanization for higher yields

Small farm sizes coupled with high costs for mechanized equipment will be a strong case for IoT adoption
India’s farms are unviable for large-scale mechanization IoT forms a key supplement to increase yields
Mechanization rate
~$10 per month
1.1 70 180
Subscription plans for
complex IoT systems ~$250
Additional annual income1
Average farm Average farm Average farm Assuming 33% average increase in yield
size (ha) size (ha) size (ha)
45% 75% Breakeven on investment
Largely restricted to tractors
95% $400+ one time per farm within 2 years
alone compared to spraying and Increasingly affordable
monitoring in other countries basic IoT sensors, RFIDs
Potential benefits make a compelling case for IoT Some challenges need to be addressed to achieve scale
Understanding of tech: Share of younger farmers, who are digitally and educationally better
25-40% 15-20% placed to understand applications and benefits to be derived out of agronomy advisory and
Superior yields Lower input costs precision agriculture, has seen a sharp decline from 34% to 14% over the last 15 years2
Macro variability: Addressing soil patterns (45 soil types / 60 globally in India) and significant
climate variability to see tangible results across geographies in India
30-50% 30-40% Affordability: Considering an avg. income of $250-300 / farmer compared to average upfront
Lower water usage Lower pesticide use
$500 cost, innovative financing and subsidy schemes are required to increase adoption
Source: Market research, Avendus research, World Economic Forum, Company presentations | 1Demonstrated outcomes in select crops and projects across multiple geographic regions | 2% of young adults aged 20 to 29 years engaged in agriculture has fallen from 34% in 2004-05 to 14% in 2018-19 |
RFID- Radio Frequency Identification
Key players in the FaaS, precision agriculture and agronomy advisory
(Year Founded) 2015 2010 2017 2019 2018
Description Research-oriented Biotech World’s first purpose-built SaaS solutions which use data Farmer centric social network Provider of an AI & IoT based precision
focusing on safe and sustainable agriculture cloud for predictive analytics to provide personalized platform by deploying advanced farming platform analyzing climatic
Agritech, with future expansion intelligence to increase farming agronomy advice to farmers ML and AI algorithms and soil details for delivering insights
into Biomaterials and Biocare efficiency and sustainability
Scale » 50+ origins with over » Digitized 16mn acres of farmland » Covers 20+ horticulture crops » 10mn+ app downloads
1mn+ subscribed farmers in 92 countries (via 250+ global » 20k acres covered across
» 90k+ paying customers » 1.5mn MAUs and 173k DAUs 7 states focused on high value
» International presence across partnerships) and 10k users on its » 800k+ daily farmer-to- horticulture crops
16 countries incl. Germany, e-commerce platform famer interactions
France, UAE & Kuwait
Total funding
($mn)
100 36 10 7 6
Select investors
Key » Proprietary farm OS to convert any » Complete farm management » Only Agritech to successfully » Personalized targeting for » Patented IoT devices with proprietary
differentiators open farm into a precision tech farm tools with insights drawn globally monetize digital subscriptions businesses on the back deep algos delivering customized
» High price realization with export » Delivers all round improvements through a freemium model understanding of farm-level actionable insights
quality produce shipped globally in water and pesticide use while cropping patterns
» Comprehensive testing services
» Focus on Bio-agri and zero driving up to 40% superior yields deliver tangible gains to farmers
residue output
Source: Pitchbook, Tracxn, Avendus research

Several Indian companies are innovating in Controlled Environment Agriculture
(Year Founded) 2015 2019 2019 2017
Description Operates a 140-acre greenhouse near Operates 33 acres of greenhouse Developed sustainable and Develops mini hydroponic farms in
Hyderabad producing medicinal crops, leafy farms producing 42 varieties of crops climate-proof growing chambers cities and revitalizes existing farmlands
greens, nutraceuticals and vine crop which are patent-pending with hydroponic technology
Scale » 8 ton per day production » 85% revenues from B2B serving Quick » 22 acres of farmlands under » Witnessed 10x growth in 2020
» 150+ SKUs operating at Commerce & HoReCa development in Rajasthan and Haryana » Installed close to 30+ hydroponics farms
20%+ margins » Caters to 15,000 households in D2C
Total funding
($mn)
32 5 9 0.1
Select investors Angel Investors
Key » 100% pesticide free, 15-20x higher yield, » 7x yield with delivery to customers within » Residue free produce, 3x yield with » 30x higher yield, 95% less water with
differentiators 90% less water 24 hours of harvest 80% less water minimal carbon footprint
» AI-driven platform with fully automated » Also operates partner/franchise- » Sets up greenhouses in partnership » Provides hydroponic DIY home kits
farming operations ensures predictability based farms with farmers with 50+ varieties of vegetables
and traceability » Production is based on fixed contracts
» Creating a platform play using the IP from institutional customers
Source: Pitchbook, Tracxn, Avendus research | SKU Stock Keeping Units | HoReCa : Hotels, Restaurants and Catering | Hydroponics - Technique of growing plants using a water-based nutrient solution rather than soil

FoodAgtech
Post-production

Major agri crops are billion-dollar value chains with large opportunities
Output market linkage is the largest sub-segment supported by additional services
FoodAgtech addressable agri produce output
$318bn
Other F&V
132
$194bn
Tomato
78 12
Onion
17 2027E
(-)
2022E 8
20 Agri produce
(-) Potato Cash crops output
Agri produce 10
output Cash crops and government
$435bn
13 60
and government Other food grains procurement
$289bn procurement 33
Wheat 34
24
43
28 Rice
2022E 2027E
Several services in addition to marketing and distribution of produce can be provided on the output side, thereby further increasing the addressable market
Packing and sorting Quality assessment Warehousing Supply demand match
Source: Avendus estimates | Other F&V – Other fruits & vegetables, Cash crops - Sugarcane, oilseeds, cotton, jute

PRE PRODUCTION PRODUCTION POST PRODUCTION PA QA SS
Market linkage is complex chain of stakeholders optimizing individually

Pain points exist across the value chain
Local trader/
Institutional
mandi HoReCa
buyers/FMCG
Farmers collectives
Wholesalers/
FPOs
Processors
Arhtiyas
Interstate trader Retailers/Supermarkets/
/mandi Dark stores
150mn+ farmers
2.5k+ stable FPOs1 6,600+ Mandi’s 10mn+ retailers and HoReCa
Despairing producers Inefficient market makers Dissatisfied consumption base
» Lack of access to quality financing at point of sale, leading » Sub-optimal demand and supply matching leading to dissonance » Lack of traceability and quality standards from market makers
to predatory lending between participants (e-NAM still accounts for <5% of total » High variability in demand necessitating multiple value-chains
» Limited storage provisions leading to losses, wastage and volume traded) and intermediaries, adding to increased costs
liquidation at prevailing prices » Limited transparency of produce quality and high counter party
» No grading / sorting of produce leading to lower realisations risk increases price markups at every stage (85% of price mark-up
is risk premium)
» Dominance by arhtiyas and middle-men prevents efficient price
and quality discovery
Varied approaches to
PA Participant Aggregators QA Quality Assayers SS Storage and Supply Chain Services
addressing market linkage
Source: Avendus research, Small Farmers’ Agri-Business Consortium, arhtiya – Traditional market maker for agri produce | HoReCa: Hotels, restaurants and Catering; FPO – Farmer Producer Organizations | 1Investment grade FPOs getting money from banking system and Nabkisan

FoodAgtechs are adopting innovative models tackling multiple bottlenecks

Business models adopted within output market aggregation
Rural entrepreneurs » Identify local retailers as nodal points for demand and supply aggregation
Typical GM:
» Outsources ‘trust’ component from firm to community resident
10-15% Institutional
buyers / FCMG
Supply chain disruptors » Reduce wastage and improve supply chain predictability
» Cater to wholesalers and organized buyers with a limited set of SKUs, Typical GM:
catered towards fresh fruits 15-25%
Retailers /
Trust layers Supermarkets /
Dark stores
Farmer collectives Local Trader / Rating and accountability system for Inter- State Traditional
and FPOs Mandi Trader / Mandi Wholesalers
End
participants to reduce counterparty risk
Farmers consumer
B2B enablers » Source demand directly through farmers or collectives

HoReCa
» CapEx for large warehouses to service wide set of SKUs Typical GM:
» Wastage control and logistics cost form key levers for sustainability 15-20%
D2C brands » Direct procurement from farmers to consumer

» Detailed control on the entire supply chain Typical GM:
» Quality and wastage control are key differentiators 30-45% Export
markets
Export oriented » Precision farming techniques for higher quality produce
Typical GM:
» Higher margins through trade with developed economies
25-35%
Source: Company information, Avendus research, HoReCa: Hotels, Restaurants and Catering | GM- Gross Margins | SKU- Stock Keeping Units

Quality assaying has the potential to impact every stakeholder

Deep tech solutions allow for on field quality assessment of the produce analyzing chemical as well as physical parameters
Pain points Benefits of tech platform
Major produce undergoes manual Standardized and instant quality assessment

check which is prone to human replacing subjectivity with scientific solutions
error and subjectivity Farmer such as spectroscopy, AI and image analytics
Time consuming and expensive Warehouse Farmer Portable quality assessment solutions
as lab tests are required to group providing accurate, timely and cost
examine chemical parameters friendly results on subscription models
Lack of transparency and Enables digital records for quality

trust in the supply chain bringing transparency into the supply
chain, enabling farm to fork traceability
Quality Mandi/
Wholesaler assessment
25-35% Trader
Improves price realization by building in
Of final retail price goes to farmer trust in the supply chain enabling farmers/
indicating low farmer realizations FPOs to provide quality assurance to buyers
15-30% Food
Retailer/ Predictive and frequent on site
Produce is wasted in supply chain at E-commerce quality assessments at every point
different nodes processor
in the chain to reduce the wastages
End
consumer
Source: Avendus research | FPO – Farmer Producer Organisations

Efficient warehousing is critical to maximize value for farm goods

Reduce wastage by up to 16% and capturing up to 40% extra value by storing goods during periods of low growth
Key issues faced by market participants
Price Inadequate Inequitable Inconsistent Post-

volatility storage access to quality harvest losses
finance standards
Speculative trading by market Lack of access, especially Lack of formal credit (against Buyers unable to procure Erratic supply due to untimely
makers and government acute in primary & secondary produce) adversely affects desired quality at optimal harvesting, adverse weather
interventions cause markets (2/3rd of transaction marginal farmers who quantity necessitates conditions leading to losses on
price volatility volumes) adversely affects need immediate liquidity for intermediaries entire year of farmer efforts
small farmers personal expenses
» Better realisations » Small tertiary level » Access to crop collateral » Segregation and collection » Controlled supply
through direct market warehouses allow for backed financing at ~15% to meet varying quality innovations enable higher
linkage platforms affordable storage costs to compared to 40%+ APR for demands across institutional fruit and vegetable quality
small farmers landless farmers buyers, HoReCa for customers
» Up to 40% by storing crops
during supply gluts
FoodAgtechs are aggregating small and tertiary warehouses to scale efficiently, digitizing stored FoodAgtechs are using innovative technology advancements across
produce, leveraging data to effectively disburse credit with minimal credit risk supply chains to ensure freshness, reduce wastage and handling losses
Source: Avendus research | HoReCA: Hotels, Restaurants and Canteens | APR: Annual Percentage Rate

Being CM positive is a key criteria for market linkage business models

Few key players are displaying such sustainable economics
Non-
Perishables Perishables
Perishables
(Fruits and vegetables)
(Cereals)
» Command higher gross margin; need stronger control on wastages
and handling
B2B B2C B2B
» Higher scope of margin expansion by building private labels and
Gross processed foods
margin 20% 25% 35% 40% 10% 15%
» B2C also have a significant CAC cost impacting profitability below
Logistics and
contribution margin
packaging 8% 11% 12% 18% 6% 8%
Shrinkage and
- Non- Perishables
handling 2% 4% 3% 5%
» Relatively lower gross margins, but easier to control logistics, wastage and
Wastage handling charges
4% 6% 6% 8% 2% 5%
» Larger export opportunity to scale and expand margins
CM » Larger time period from harvest to consumption lead to higher working capital
2% 3% 7% 10% 2% 3% requirement in the value chain impacting profitability below contribution margin
Source: Avendus research | CM: Contribution margin represents revenue net of all variable costs essentials to operations of a market-linkage player

Opportunities exist to further expand the margins

Steady state margins
Non-
Perishables
Perishables
(Fruits and vegetables)
(Cereals)
B2B B2C B2B Levers to increase value
Gross » Targeted SKU fulfilment at wholesalers vs retailers allows efficient perishable

margin value-chains
22% 28% 37% 45% 12% 18% » Gross margin expansion through private labels (2-5%) and export focus (6-10%)
» Proper sorting and grading of produce to expand margins by (2-3%)
Logistics and » Efficient cold chains and packing solutions to increase quality of produce and reduce
packaging 7% 10% 10% 15% 6% 8% effect of externalities
Shrinkage and - » Leveraging data to predict demand and harvesting patterns to reduce moisture loss in
handling 1% 3% 2% 4% perishables (1.5-2%)
» Reducing handling of produce by intermediaries can reduce logistics wastage by half
Wastage » Using efficient warehousing to reduce pest infestations in cereals (1-2%)
3% 6% 6% 8% 1% 4% » Leveraging post-harvest QA to remove damaged fruits increases margin by (2-3%)
CM
7% 10% 12% 16% 7% 10%
Sustainable unit economics need to be built into businesses early on, with
EBITDA a selective risk-weighted customer base to ensure an average receivable
5% 6% 6% 8% 5% 6% period within <45 days
PAT
4% 5% 5% 6% 3% 4%
Source: Avendus research | CM: Contribution margin represents revenue net of all variable costs essentials to operations of a market-linkage player | QA- Quality Assessment | SKU- Stock Keeping Units

Key players disrupting the market linkage space through aggregation (1/2)
(Year founded) 2015 2015 2020 2019
Description Inventory led B2B market linkage Inventory led B2B market linkage platform Community re-seller model for fresh B2B fruit marketplace partnering with
platform for fresh produce for agri produce fruits and vegetables farmers at supply and multi-channel
customers across globe
Scale » Present in 20+ states » Operates in 700+ locations across » 10k+ farmers and 20k+ resellers » Connected to 20k+ farmers
» 50k+ farmers on the platform Southern India » 400k+ customers on the platform » Processes 200 tons of fruits daily
» 200k+ farmers on the platform
Total funding ($mn)

377 160 44 41
Select investors
Key differentiators » Full-stack supply chain player » Full-stack product range for retail » Farm-to-fork delivery model with » Data based quality standardization
delivering to retailers, HoReCa (traditional, modern and online) <12hrs delivery time from harvest and live matchmaking
» Farm-to-retailer delivery in <12hrs increasing stickiness » Lower last-mile logistics and » Focuses to build full-stack capabilities
delivery time » Presence in private label products along customer acquisition costs on in high gross margin fruit categories,
with value addition and deep sourcing account of reseller model leading each at least a billion dollar in size
drives higher margins to better unit economics
Source: Tracxn , Pitchbook, Avendus research | HoReCa : Hotels, Restaurants and Catering

Key players disrupting the market linkage space through aggregation (2/2)
(Year founded) 2019 2018 2022
Description Online trading and accountability platform for agri D2C farm-to-fork platform selling fruits B2B platform enabling agricultural producers sell
commodities and vegetables directly to international retailers and distributors
Scale » Presence in 600+ regions across 28 states » Operational in 3 cities with 500K+ customers » Currently operational in UAE
» Facilitate trade of 110 commodities » 1k+ farmer network
Total funding ($mn)

34 18 3
Select investors
Key differentiators » Building accountability in value chain using ratings » Demand-backed supply chain for perishables » Digitizes procurement operations via a
for players » Manages a network of peri-urban farms that wide network of source producers, digitized
» Integrated platform to manage orders, payments, and cultivates fresh produce exporting and importing operations, and last-
credit driving stickiness mile logistics
» Promises last-mile delivery within 16-20 hours
» Presence in private label products drives from harvest
higher margins
Source: Tracxn , Pitchbook, Avendus research | HoReCa : Hotels, Restaurants and Catering | F&V Fruits & Vegetables

Key players disrupting the market linkage through quality assaying
(Year founded) 2016 2016 2019
Description Deep-tech enabled, full-stack fulfilment platform AI-powered imaging platform for quality assessment IoT-based platform for solutions in quality
for agri-businesses, powered by state-of the art and optimization of F&V across supply chain assurance of F&V across supply chain
technologies including spectral sciences, visual
sciences and blockchain
Scale » 40+ commodities, tested on 500+ parameters NA NA

» Operations across India and UAE
Total funding ($mn)

25 14 0.2
Select investors
Key differentiators » Proprietary AI technology enables testing at » Niche focus on F&V drives outcomes like 40% » Portable handheld device, Infyzer, determines
60% lower costs and within 30 seconds reduction in rejections complete internal quality within five seconds
» Procurement with quality tracing and grading » Re-engineering e-auctions and spot-trading with a single scan
at the core through agri-produce trade exchange platform
» Marquee institutional clientele: ITC, Godrej, called Praman
NAFED, Olam, etc.
Source: Tracxn , Pitchbook, Avendus research | F&V Fruits & Vegetables

Key players disrupting the market linkage space via supply chain solutions
(Year founded) 2013 2010 2012 2015
Description Unified post-harvest platform, with a pan-India Offers a portable IoT-enabled cold storage for Facilitating market linkage and ease of access Cold chain solutions for fruits comprising
uberized network of warehouses near farmgate - perishable produce (Ecofrost), platform for to credit by leveraging grain collaterals stored temperature-controlled transport and
supplemented by embedded finance and integrated institutional buyers of perishables & a smart at tech enabled warehouses to realize 35-40% storage solutions
grain marketplace controller for irrigation pumps (Ecotron) higher income
Scale » $2.5bn of grain under management » Pan-India presence with exports to Africa » Presence in 250+ locations across India » Focused on supplying litchis and
» $800mn finance extended & $300mn » Ecotron: 80k+ farmers » 250+ GrainBank across pan India servicing mangoes to Delhi and Bangalore
grain commerce » Ecofrost: 10k+ farmers 150k+ farmers
» 10.6k+ warehouses in 800+ locations with » Disbursed over INR 200cr micro loans with
36MMT capacity 100% full repayment on time
Total funding
($mn)
78 18 14 7
Select Angel Investors
investors
Key » Layering of multiple services (storage, finance and » Rental model for FPOs enables access » Integrated gateway for farmers to access » Focused approach on successfully
differentiators commerce) on the same crop brings stickiness and to a larger base of small farmers warehousing services, credit facilities to managing end-to-end cold chains for 2
strong margins manage cash flows over 6-9 months fruits along with complete traceability
and testing solutions; strong scope for
» Crop collateral allows competitive financing solutions » Dedicated relationship managers ensure
replicating the model to other F&V
for landless farmers. 0% NPA till date on all financing farmer stickiness and build trust, allowing
Ergos to cross sell over services
Source: Pitchbook, Tracxn , Avendus research | F&V: Fruits & Vegetables | FPO: Farmer Producer Organisations

FoodAgtech
Agri-fintech

Fintech is pivotal for the lasting success of the overall FoodAgtech ecosystem
Farmers in India are currently operating at an extremely over-levered structure
Finance has the potential to create sustainable impact

Farmer requires financing at each stage of the value chain from pre-production to post-production on large proportion of farmers
Financing Equipment Warehouse Invoice

150mn $220bn
for inputs finance finance financing crop farmers in India of PSL disbursed to agriculture
Cheap finance through formal sources at the right time, as against informal credit at 24% to 60%, 53%
has the potential to increase farmer incomes by 40-60% of these farmers have access to finance
X
Though KCC is a step in the right direction, more efforts are needed to make agri-finance
fully inclusive
70%
of credit active farmers borrow from institutions
KCC loans are accessible to farmers at interest rates
as low as 7% per annum
Landless farmers are excluded from availing
KCC loans
=
57mn
NPA norms put burden of repayment on farmers credit active farmers being addressed by
Prompt repayment incentive for timely payment of
disallowing further financial loans even in case of crop institutions under PSL
dues at 3% on interest rates
failures
Leads to a secondary economy where land owned farmers act as money lenders to farmers forced Massive opportunity to capture the remaining
out of formal credit system two-thirds of the market
Source: NABARD All India Rural Financial Inclusion Survey (NAFIS) | National Bank for Agriculture and Rural Development (NABARD) | KCC: Kissan credit card | PSL: Priority sector lending

Challenges persist in the ecosystem for overall success of agri-fintech
FoodAgtechs are exploring different approaches to succeed in the ecosystem
Critical success factors for agri-fintech Agri-fintech business models in play in the ecosystem
Digitisation of crop-related parameters such as input usage, Types of financing Approach for financing
weather, crop health, predictive pricing and quality would allow
for risk assessment and mitigation Collateralized financing » Provides finance by digitizing the grains
» Enables traceability, price discovery, and market linkage
allowing for cashflow based financing
Building of agristack could act as a key enabler for success Equipment finance » Operates through partnership with FPOs
of rural finance bringing down cost of servicing farmers and
facilitating instant access to formal credit for farmers Working capital finance » Data driven and cashflow based financing led by provision
of aggregation, advisory and market linkage services
Invoice financing
Working capital finance » Operates through a network of agri input retailers

Gaining farmer attention and trust requires some level of offline
presence through partnerships with ecosystem players such as » Provides supply chain financing for input supply chain and
retailers, FPOs, local entrepreneurs can be explored farm output buyers
Financing for inputs » Enables provision of input credit to

farmers by providing BNPL solutions to retailers
Supplementary success factor and distributors
Integrated approach with inputs, advisory and market linkage to

enable cashflow-based financing with holistic information about
farmers’ operations
Source: NABARD All India Rural Financial Inclusion Survey (NAFIS) | National Bank for Agriculture and Rural Development (NABARD) | FPO – Farmer Producer Organisations

Key players leading the way in agri-fintech
(Year founded) 2014 2017 2017 2015
Description Enables affiliated farmer collectives, along Agri focused neo bank providing full stack financial services Integrated platform providing farm inputs Tech enabled insurance broking
with the larger ecosystem to be more for rural individuals and businesses distribution, analytics & farm advisory firm for rural individuals
efficient and productive through multiple supported by fintech core for farm produce
technology enabled interventions and and input distribution
collaborative partnerships
Scale » Access to over 4.5k farmer collectives, » Working with 700+ organized and unorganized entities » Caters to 1.4mn+ farmers through a » Reach of 3.2mn+ farmers
3k agri enterprises across 22 states covering a network of 150k individuals alcross 10 states network of 60k+ U-Stores across 13 states and
» Presence in over 100 agri value chains 22k+ villages
Total funding
($mn)
100 88 10 10
Select investors
Key » Engagement with farmer collectives » Operates across categories in agriculture, poultry and dairy » Upsells green agri-inputs to deep- » Strong network of 20+ leading
differentiators through a unique inclusive approach » Fully-integrated with KVGB to distribute a complete range of rural network of retailers through tech Indian insurers
to ecosystem via market linkage, financial products driven advisory platform » Comprehensive insurer for rural
aggregation and advisory offering products for motor, crop,
» Launched Bharat Khata, a digital ledger for businesses » Provides working capital led
» Nurtures farmer collectives as an capturing a $380mn GTV across 25k store fronts intervention for input supply chain and livestock, health and life insurance
asset class and enables access to farm output aggregators
mainstream financial market for
small farmers
Source: Pitchbook, Tracxn , Avendus research | KVGB Karnataka Vikas Grameen Bank | GTV Gross Transaction Value | FPO Farmer Producer Organisations

FoodAgtech
Integrated platforms

FoodAgtechs have created an integrated play to expand reach and achieve scale
beyond a process focus
Initial PMF1 Gaining traction Creating synergies Unified platform
» Started as a Uber-like aggregator » Started digitizing agri-retailers’ workflow, » Provided data-driven marketing schemes to help » Full-stack platform enabling agri-retailers by
for rental of farm equipment helping them engage with and serve as agri-retailers craft attractive deals and discounts providing access to inputs & SaaS tools for
» Pivot 1: Agri-fintech platform one-stop solution for output for farmers for farmers them to engage/ provide advisory to farmers
» Pivot 2: B2B platform for » 2022: Acqui-hired Subjimandi.app to optimize logistics and aggregate final produce
agri-retailers and expand to F&V category
» Started as tech-enabled » Implemented larger technology » Expanded platform to offer personalized agronomy » Full-stack agricultural platform from seeds
marketplace for quality agri inputs interventions with regional language insights for diseases and pest control at every stage to market by introducing a technology-led
translation, seamless payment and building of the crop and a social media community market linkage
a robust architecture
» Started as farmers’ marketplace » Started micro-entrepreneur model » Offered credit & insurance products through partnerships » Full-stack tech platform mapping the
for smallholders in Bihar, offering enabling last-mile delivery of agri-services » 2021: Acquired Farm Guide to integrate satellite-based entire agri value chain between farmers
access to inputs, advisory and » Introduced forward linkage contracts for crop advisory solutions and agribusinesses with a unique
institutional buyers niche crops » 2022: Acquired agri-input marketplace Helicrofter phygital strategy
marking entry into Maharashtra
» Started as an m-commerce » Turned into a cloud platform combining » Expanded omnichannel presence with launch of » Content-led platform providing end-to-end
platform for inputs and agronomy and data science to provide offline touchpoints (1,000+ currently) solutions from farm advisory, agri-inputs,
hardware products customized crop advisory » 2022: Acquired INI Farms to expand into the entire omnichannel access to market linkage
F&V segment and global food supply chain
Current state
Source: Avendus Research, company information | 1PMF: Product market fit | F&V Fruits & Vegetables

Integrated platforms (1/2)
(Year founded) 2012 2013 2015 2015
Description Full-stack platform providing agri- End-to-end solutions including farm advisory, agri- Empowering farmers and agri-communities Full-stack agricultural platform providing
input procurement, farm analytics & inputs, omnichannel access and market linkage with software and linkages by connecting farmers end-to-end crop advisory, quality inputs,
advisory, access to output buyers and credit & them directly with food businesses in India farm implements and market linkage
insurance and across the world
Scale » 4k+ micro-entrepreneurs » 7.5mn+ farmers connected in 5 states and » 2.5mn+ farmer network » 15mn+ farmers engaged
» Serving 1mn+ farmers in 7 states 7.5k+ pincodes » 75k+ MT tons of produce supplied » 3mn+ MAUs
» Offline presence through 4.5k+ stores across 7k+ pin codes » Features 10k+ SKUs servicing 16k pin codes
» Exporting over 90k MT of fresh produce to
25+ countries
Total
funding ($mn)
165 133 48 19
Select
investors
Key » Combination of free advisory services and » Omnichannel presence on the farm-inputs side » Uberized approach by enabling micro- » Doorstep delivery to farmers for farm inputs
differentiators low-cost input marketplace enable steady with end farmer visibility across all channels entrepreneurs through software for farmer including machinery
farmer acquisition » Acquired INI Farms enabling global output market engagement and produce aggregation » Offering data driven analytics to players across
linkage to 25+ countries with sub 2% wastage leading to 100% income increase agri value chain
» ~50% incremental income to farmers, leading to
high stickiness on platform » Presence across food crop categories
» 70mn+ data points received every month on » Strong digital ecosystem linking large food
AgroStar app feeding into multilingual content companies, financial giants and agro-
and advisory input majors
Source: Pitchbook, Tracxn , Avendus research; MAU Monthly Active Users | SKU Stock Keeping Unit

Integrated platforms (2/2)
(Year founded) 2015 2016 2004
Description Full-stack platform providing crop management End-to-end product and services platform for agri-inputs, Erstwhile Pioneering Ventures, operates nutrition
solutions, agri-inputs, post-harvest market linkage E-auction, advisory, output market linkage and fintech and platform divisions providing end-to-end
and social network solutions to farmers and retailers
Scale » 800k+ farmers onboarded » Presence in 30+ cities » Working with 60k+ farmers and 16k+ retailers
» 10k offline retail stores for omnichannel approach » 7 lakh+ farmers and 3 lakh+ users
» Facilitates trade of $1.5bn annually on the platform
Total funding ($mn)
19 NA NA
Select Family offices

investors
HNIs
Key differentiators » Low-cost and branded farm inputs with doorstep » Leverages AI-driven insights and analytics to offer » Blockchain-based certification to enable
delivery for agri-retailers customized services like credit-on-a-click and production traceability
» Advisory platform, free content drives engagement crop advisory » Operates four verticals of dairy, animal feed,
& stickiness » Replicated the physical mandi to an electronic e-mandi perishables and non-perishables with global
aggregator mode footprint in 14 countries
» Offers tech-based traceability solutions to corporate
buyers and international clients
Source: Pitchbook, Tracxn , Avendus research

Other Agritech
a. Fiber crops
b. Cattle and Dairy
c. Aquaculture and Poultry
d. Insect feed

Other Agritech
India in 2027
$200bn 15mn 50%+

Agri value-chain Farmers benefitted Potential increase in yield
disruption potential by Other Agritech and farmer incomes
Natural fiber Cattle and Dairy Aquaculture Poultry
Current market $15bn1 $250bn2 $25bn $30bn

size
# of farmers3 15mn 80mn 5mn 50mn

1
Estimated basis farmgate prices for raw fiber crops;
2
Includes cattle trading, dairy and dairy products;
3
Nonexclusive figures for each category

Other Agritech across various sub-sectors
Cattle and Dairy
Poultry Aquaculture
Natural Fiber Insect feed

Natural Fiber is witnessing a long overdue tech-driven disruption
Solving for sourcing with technology can eventually serve the $100bn+ textile retail market
Large market at the farmgate level Highly fragmented farmgate sourcing chain imploring for tech interventions
$15bn total farmgate value1 Pain points Tech interventions

Farmgate sourcing
Untimely availability of inputs due to reliance AI-tested quality inputs available on-demand
Cotton Silk
on local suppliers through marketplace
$11bn 25% $3bn 18%
market of global production market of global production Lack of early disease detection capabilities and IoT-led early disease detection and data-driven
primitive tools for preventive care scientific crop advisory
Jute Wool
No price transparency for output and exploitation Image recognition tools for non-destructive
$1bn 60% $0.5bn 2% of farmer margins by traders quality assessment and fair pricing
market of global production market of global production
Pain points in the retail textile market Multi-fold monetization potential from farmgate to retail once sourcing is solved
Retail–textile distribution
Illustration – Reshamandi’s evolution to a digital ecosystem for natural fiber

Retailers rely on middlemen in close
80%+ proximity for fiber supply
2020 » Solved for inputs sourcing, advisory and output linkages for farmers and reelers
» 25%+ higher crop yield
High unreliability of fiber quality; requires
destructive testing at later stages
2021 » Building a natural fibers brand for designers, corporates, retailers and end consumer
» D2C e-commerce platform & offline centers for fibers with first-mile traceability
Logistical delays and demand volatility lead
» Sourcing TAT reduced by 30% and quicker working capital cycle
to inventory mismanagement
Source: Food & Agriculture Organisation (FAO), Indian Council of Agricultural Research (ICAR), Avendus estimates | TAT- Turn Around Time | 1Market for raw fiber estimated basis annual production and market price

Cattle and Dairy industry presents a large digitization opportunity Re Design
The largest ‘crop’ in India moving from subsistence to commercialization on the back of tech-modernization
A valuable socioeconomic sector Digitization opportunities gaining momentum across the cow to consumer value chain
Tonnes of milk produced in Digital cattle trading IoTfication of supply chain

210mn India–highest in the world » $90bn of cattle trading presents a large market » Real-time monitoring of operations
fraught with information asymmetry » Quality testing, grading & maintenance at
Indian farmers earning from » India has the world’s largest bovine population collection and chilling centers
80mn dairy sector of 300mn » Predictive data analytics applications
» Average cost of cattle is $650, a significant in dynamic route management, waste
India’s share in global purchase for a smallholder minimization, etc.
23% milk production » Growing demand for improved genetics and
cross breeding
Indian dairy productivity remains low
Marketable surplus from

60%+ unorganized sector
Precision livestock monitoring
» Activity monitoring using animal wearables
D2C dairy & dairy products
» Shift towards organic and premiumization
» Veterinary healthcare consultations » Reinventing the supply chain through ethical
Indian milch held by small
70%+ and marginal farmers
» Dairy-data driven farm advisory
» Access to high-quality feed and inputs
sourcing and direct control over end consumer
» High gross margin business due to direct
» Allied services like alternative financing procurement, premiumization and cross-sell
and insurance by leveraging herd » High stickiness and demand predictability due to
Annual Milk Productivity Yield (litres/cow)
performance indices subscription nature of business
10,700
» Combined with a negative working capital
8,200 cycle leads to high return on capital
1,250
Source: Food & Agriculture Organisation (FAO), Indian Council of Agricultural Research (ICAR), Avendus research

Innovative tech interventions fixing critical gaps in India’s dairy ecosystem
Pain points Agritech disruption Disruptors1
» Managed marketplace for cattle Peer-to-peer cattle trading Integrated app-based

» Unstandardized cattle market with high
discovery and standardization platform with 8mn+ farmers community of 1.4mn+ dairy
information disparity leading to price arbitrage
» Digitized animal records along with community and farmers solving for cattle
» Demand-supply gap in feed and fodder which
and genetics veterinary healthcare features trading and verification
makes ~70% of the cost of dairy farming
» Inputs marketplace
» Primitive veterinary care, livestock monitoring » IoT and data driven tracking IoT wearable and herd Digital livestock management,
and farm management of metabolic status, medical management app: 1 month online consultation with
» Poor breeding and animal genetics consequent regimen and other herd reduction in inter-calving veterinarians, e-learning
low productivity and increased calving intervals performance indices period, 50% reduction in content & community
» Genomic breeding interventions animal health expenses
» Supply chain with multiple moving parts in an

extremely perishable category » IoT based monitoring at chilling Cloud-based cold chain Fully backward integrated
» Dairy brands with limited backward integration and centers and real-time remote management solutions: model enables real-time supply
zero traceability reporting of procurement operations 50% energy savings and 20% tracking and 100% traceability
» Over 40% of milk and dairy products fall short of » D2C approach eliminates reduction in manpower costs and predictability
regulatory standards middlemen to deliver unadulterated
traceable milk
Source: Avendus research | Inter-calving period refers to interval between two successive lactation periods | 1Illustrative list

Agritech adoption picking up in traditional Indian Aquaculture and Poultry farming
Structural shift from unorganized to organized market accelerated by tech interventions
Challenges present across the farming value chain Market opportunity
Unscientific farming practices Lack of formal capital inclusion

No control on water quality criterion, biomass Absence of proper technology making $25bn+ 5mn
estimation and aquatic health aquaculture risk underwriting difficult India market size Farmers earning livelihood
High levels of pollution Chaotic post-harvest chain

Aquaculture Discard of untreated pond effluents into nearby Plagued by lack of demand predictability, $6bn 90%+
waters affecting quality traceability and pricing transparency Exports from India Share of small-scale farmers
Input price volatility Highly unorganized market

Poultry feed cost makes up 65% of the 8k+ registered and 20k+ unregistered $30bn+ 50mn
cost of farming slaughterhouses India market size Farmers earning livelihood
Intricate supply chain Lack of cold chain systems

Poultry farming Inefficiencies from farm to fork leads to value Requires huge capital investment which 70%+ 90%+
erosion of 30-50% leads to low GT and MT penetrations Meat-eating population in India Market still unorganized
Direct farmer Satellite sensing-based Cloud-based AI-driven farm Downstream market Farmers electronically
Illustrations procurement, IoT- farm monitoring, monitoring, intelligent
Employs IoT for
advisory, omnichannel linkage platform auction their products
capturing environmental
& Tech enabled just-in-time omnichannel inputs feeding system data and quality checks, inputs marketplace, leveraging technology to through an AI-driven
Interventions supply chain, cold-chain marketplace, last-mile which reduces feed order management, last-mile linkage, deliver fastest harvest- supply chain, IoT-
controlled logistics and market linkage with conversion ratio (FCR) supply chain and farmer formal finance and to-retail, transparent based inbuilt sensors
end-to-end farm to fork embedded formal by 30% flock management-all insurance linkages pricing and reliable in cold storage
traceability finance and insurance propelled by technology traceability
linkages
Source: Food and Agriculture Organization (FAO), Indian Council of Agricultural Research (ICAR), Avendus research; BFSI – Banking, Financial Services & Insurance: GT- General Trade; MT- Modern Trade | FCR: Calculated as feed requirement per unit of body weight gain

Insect Feed Agritech: An evolving category with prominent global outcomes
Sustainable feed alternative for poultry, aquaculture and pet food industries
Nutritional value and sustainability as key drivers of the industry Some global outcomes have already emerged in the space
Company Funding Select
Rising demand for sustainable protein Scale
(Country) ($mn) investors
Meat consumption predicted to grow 73% by 2050 propelling the
demand for healthy livestock feed » 2 production sites in operation and one under construction
425
» Capacity of 75k MT of protein per year
Rising input prices of substitutes France
Animal feed substitutes like fishmeal and soybean represent 70% of
» 4 production sites in operation
production costs 420
» Capacity: 230k MT protein per year
High nutritional value France
56-82% protein content, almost double the protein content of soymeal
» 6 production sites in operation
134
UK » Upcycle 90k tons of organic waste yearly to produce 4k tons of protein
Contribution to circular economy
Upcycling of low-value agri-food waste into high-value protein feed » 65k MT feedstock input capacity feeding more than 5mn salmons
126
» Spread over 14k m2
Netherlands
Insect Feed clearly wins relative to other sources of feed protein Insect farming is an attractive business but with unique challenges
Insect feed Fish feed Soy feed Achievable unit economic profile at a large-scale
Key challenges to successful scale-up of insect farming in India
industrial insect farm
Protein Content 56-82% 60-68% 40-47%
» Sourcing: Large-scale sourcing » Processing: Large-scale
Revenue 100%
Feed Conversion1 of organic food-waste automation requirement in
Feedstock 15-20% processing technologies
Water footprint2 High/More » Production: Intensive energy » Consumption: Aversion
Other costs 40-45%
demand requirement in towards inclusion in human
Carbon footprint3 Moderate
EBITDA 35-45% indoor farms and animal diet
Land use4 Low/Less
Source: Tracxn, Pitchbook, World Wildlife Fund (WWF), Avendus research | 1Calculated as feed requirement per unit of body weight gain | 2Water footprint: water (l)/ protein (g) | 3Carbon footprint: CO2 - eq ; | 4Land use: Area (m2)/ protein (kg)

Key players leading the way in Natural Fiber Crop and Dairy Agritech
Natural Fiber Cattle/Dairy
(Year founded) 2020 2013 2011 2019 2013
Description Farm-to-fashion digital ecosystem D2C fresh produce brand with a daily Tech-driven, end-to-end dairy led Peer-to-peer livestock listing and Dairy as a service full stack platform offering
for the natural fiber supply chain subscription model delivering daily food value chain platform trading platform. Also offers a forum veterinary services, livestock trading,
essentials for dairy farmers to connect with advisory, and access to inputs, credit &
veterinarians & other experts insurance
Scale » 74k+ strong farm network » 1,200+ strong farmer network » 3.1mn+ registered farmers » 10mn+ app installs with » 2k+ cattle and 10k feed bags
» 15MT+ daily cocoon traded » 300k+ subscribers 2mn+ listings sold per month
» $500mn+ of cattle trading value » 20k+ users on the platform
facilitated on the platform annually
Total funding
($mn)
39 147 37 23 12
Select
investors
Key
» Only tech-led player of its kind » 24-36 hours just-in-time » AI and analytics driven full » High-AOV managed marketplace » Integrated ecosystem approach of
differentiators
in this space catering to entire fully integrated IOT-enabled stack IoT platform optimizing offering fulfilment & delivery to connecting farmers to high yielding
natural fiber ecosystem supply model herd management, milk build quality standards in an cattle, veterinarians, advisory and
procurement, milk chilling and unstandardized market financial services
» Offers access to personalized » Superior quality and high repeat
cold chain management » Community forum builds
credit solutions and working rates through a customer
capital support first approach stickiness; can diversify offering
and monetize a large user base
Sources: Pitchbook, Tracxn, Avendus research | AOV Average Order Value

Key players leading the way in Aquaculture, Poultry and Insect Feed Agritech (1/2)
(Year founded) 2015 2010 2017 2019 2018
Description Leading D2C protein brand built on Online platform offering fresh meat, B2B platform using technology in Developer of aquaculture technology Brand of egg and egg-based products
its own technology platform with seafood and fruits and vegetables delivering the fastest harvest-to- for shrimp feed management, with vertically-integrated platform
end-to-end supply chain and real to customers retail in the seafood marketplace real-time shrimp health and pond offering farm fresh and herbal eggs
time customer insights monitoring to consumers via omnichannel
retail network
Scale » 3mn customers NA » Present in 20+ cities » 75k+ acres of farmland covered » Selling 300k+ eggs daily
» 1.2mn+ monthly orders » Caters to 2,000+ retailers » 90% sales from outside India in » 400k+ birds under management
» Presence in 20 cities » Exports to USA, European and 13+ countries » Present in 3 metros and other non-
West Asian countries metro cities
Total funding
($mn)
375 182 116 7 6
Select
investors
(Acquired)
Key » Industry- leading sourcing and » End-to-end cold supply and » Leverage data and analytics to » Intelligent prediction and warning » Only asset light brand of UV-sanitized
differentiators processing across categories with 100+ quality checks for enable dynamic route planning system allowing prediction eggs processed in automated
150+ quality checks standard chemicals. Antibiotics and optimization at 80%+ rates, improving facilities with 11 safety checks and
and preservatives productivity by 26% delivered fresh from farms within
» End-to-end 24 hours JIT supply chain » Seafood-focused supply
» Provides inventory and sales » Automatic feeder adjusting feed 24 hours of laying
ensuring farm-to-fork freshness chain digitized using IOT
management software to vendors enabling first-in, first-out quantity based on water quality » In-house tech enabled supply chain
» Deep region-specific product portfolio and weather data, reduces FCR from poultry feed to retail
with 200 SKUs in Raw & Fresh and a inventory management
by 30%
pioneer with 100+ RTE/RTC SKUs
Sources: Pitchbook, Tracxn, Avendus research | FCR: Calculated as feed requirement per unit of body weight gain | RTE: Ready to Eat | RTC: Ready to cook | SKU: Stock Keeping Unit

Key players leading the way in Aquaculture, Poultry and Insect Feed Agritech (2/2)
(Year founded) 2019 2015 2011 2019
Description Full-stack platform helping farmers Omnichannel platform providing end-to-end Full-stack services to fish and shrimp farmers Manufacturer of premium feed and value-
diversify into animal husbandry and solutions including AI-enabled farm advisory, through crop finance, input procurement, added ingredients for aqua and poultry
aquaculture by offering access to inputs farm inputs marketplace, finance and data-driven crop management system and companies via insect farming
as well as market linkage market linkage harvest facilitation
Scale » 300k+ farmers onboarded » 60k+ strong farmer network » 4k+ farmer network » Pilot facility processing 50 tonnes of food
across 6 states » Presence in 4+ states » 14k acres farms automated waste every day
» 30+ brand partnerships » 2k+ IoT devices deployed
» 27k+ serviceable pin codes
Total funding
($mn) 6 5 4 3
Select
investors
Key » Blockchain-backed traceable supply chain » Established network of 450+ aqua partners » Real-time monitoring of ponds enabling » Decentralized insect rearing facilities built in
differentiators to farmers, butchers, meat companies (franchise input stores) to help farmers avail farmers to analyze pond dynamics partnership with smallholder farmers
and exporters for their poultry, seafood services like input purchase, crop finance, » Reduces financial risk to be borne by the » Value added products including oils and frass
and livestock needs advisory and sell harvest farmers by ensuring spot payments and with multiple use cases
» Data-driven farm advisory improving crop low-cost credits
productivity up to 20% and farmer incomes
by 15%
Sources: Pitchbook, Tracxn, Avendus research

Agritech
Global outcomes and
exit opportunities

Several large outcomes have already been created globally (1/2)
16 unicorns have been created in the past 2 years
Location/
year founded China 2014 USA 2014 South Korea 2015 USA 2014
Description Inventory-led B2B fresh produce platform Platform for farmers to share agronomic data B2B online trade platform matching global Vertical farms offering vegetables and herbs
and agri-inputs marketplace food agriculture buyers and sellers
Scale » 2mn+ restaurant clients across 300+ cities » Network of 33,000+ members spanning » Covers 15,000 agri commodities » Serves 850+ grocery stores
in China 80mn+ acres in USA, Canada and Australia » Serves 445,000+ users in 150+ countries » Clocked 7.5x+ growth (and 4x+ growth in
e-comm. platforms) since 2020
Valuation
($bn)
7.0 4.0 2.7 2.3
Total funding
($mn)
1,300 744 123 477
Select
investors
Key » End-to-end supply chain management » ‘Google for farmers’ bringing transparency of » Owns 1tn+ data points for agri commodities » Uses no pesticides, 95% less water
differentiators lowering costs while maximizing information in a traditionally opaque market » Offers multitude of services enabling trade vs traditional farms
efficiency such as supplier directory, » 100x+ more productive in comparison
fulfillment solution and market intelligence
Source: Tracxn, Pitchbook, Industry Research

Several large outcomes have already been created globally (2/2)
16 unicorns have been created in the past 2 years
Location/
year founded China 2007 Canada 2010 UAE 2016 Indonesia 2013
Description Manufacturer of drones for crop protection, Precision farming platform leveraging IoT & Vertical farms offering vegetables & herbs End-to-end integrated aquaculture platform for
fertilizer spraying, seeding, etc. big data fish and shrimp farmers
Scale » Covers 100mn+ acres in 42 countries » Installed 2mn+ sensors » Operates 4 farms in UAE covering 22 ha » 30k+ strong farmer network across 24
» Serves 9mn+ farmers » Manages 120mn+ acres across 4 continents of land provinces in Indonesia
» 70k fish and shrimp ponds digitized
Valuation
($bn) 1.5 1.0 NA NA
Total funding
($mn) 288 225 387 140
Select
investors
Key » Offers substantial improvement » Collects 520mn+ data points daily » Uses no pesticides, 85% less water vs » Improved feed efficiency and farmer incomes
differentiators in pesticide and water usage » Customizable tools developed in traditional farms through IoT-based smart fish-feeding machines
while achieving higher yields collaboration with farmers » Provides platform for input feed procurement
supported with farmer financing
Source: Tracxn, Pitchbook, Industry Research

Global exit trends in Agritech
While IPO’s have been the preferred route, agri-food companies have also been active in Agritech investments and acquisitions
Exit trends Key investments / acquisition by agri-food conglomerates
3.0 Company # of Select acquisitions/ Sectoral focus

Total value ($bn) investments investments
2.7
1.8 22 Ag Biotech, Farming Tech and Management
Ag Biotech, Farming Tech and Management,

2.7
Buyout
18 Innovative Food
0.5 IPO
0.4 0.3 1.2
Ag Biotech, Farming Tech and Management,
0.3 0.01
0.5 0.2 15 Agri Marketplaces
0.1 0.1
2016 2017 2018 2019 2020 2021
9 Ag Biotech, Farming Tech and Bio Materials
5 Ag Biotech, Farming Tech and Management,

Number of deals 18 Innovative Food
12
5
4 Ag Biotech, Farming Tech and Management
9 Buyout
Reasonable IPO traction in the past two years
7 IPO
7 13
7
5
3 3
3 Date Nov’21 Jun’21 Jan’21 Mar’21
1
4 5 Market
2 2 2
2016 2017 2018 2019 2020 2021
Cap at IPO $1.1bn $0.7bn $0.5bn $0.2bn
Source: Pitchbook, Company Agritech, Agfunder

Multiple strategic actions are being witnessed in Indian Agritech ecosystem
Traditional food corporates are building in-house or choosing to partner; large Agritechs are acquiring to expand capabilities
Incumbent agriculture companies are investing Large Agritechs are expanding capabilities through Greater influx of global growth capital in the
in tech plays to boost farmer engagement horizontal acquisitions next 3 years, IPOs to follow
End-to-end platform serving 90k+ Develops remote monitoring Increasing global growth capital
retailer and 1.6mn farmer across equipment and intelligent feeders interest will bolster traction for
by by
13 states for shrimp farmers to improve early stage companies
productivity
Oct’21 Annualized GMV: $160mn
Farm consultancy services which

include agronomy, equipment by
Global consumer brand for fruits with
presence in 35 countries enables
2026 3-4 years to first Agritech IPOs as
companies gain scale and fine tune
by 1st Agritech
rental and precision agriculture supply chain automation and direct IPO in India business models
access to consumer
ITCMAARS Phygital ecosystem to provide end-to-

end services to 40k farmers, grouped
Augmented supply chain capabilities
to increase reach across FPOs and
13 More than the last 3 years combined,
creating a path to liquidity for
by Global IPOs
into 200+ FPOs, across 7 states by agri-enterprises in 2021 Agritechs
Avg. IPO size (2021): $210mn
Increased adoption of technology platforms enabled 15+ acquisitions over the last 3 years by Agritechs who 2-4 IPOs within the next 5 years as global growth funds
through distribution platforms of agriculture companies are relatively well capitalized and tech investors are increasingly favorable on Agritech
Source: Avendus research, Company information | FPO – Farmer Producer Organisations

Way forward: What can we expect an Agritech company to look like in 5-7 years
Illustrative operational
scale and financial profile
$1.5bn+ 30%+ 3-5% 20-25%+
GMV at the time of IPO High yearly PAT margins Healthy RoCE
growth rate
Fast
Agritech companies are expected to have higher growth rates than the traditional companies
growing
Capital With relatively thinner margins vis-à-vis consumer companies, Agritech’s would need to be capital efficient
efficient As an illustration – debt and equity capital raise of <$300mn to reach a $1.5bn scale
Understanding Agritechs
through public market
perspective
While operational profitability is key for sustainable outcomes, Agritech companies would need to be PAT profitable prior to/
Profitable
in-near term post listing
Sustained Classified amongst attractive publicly traded firms with >$1.5bn market cap, >20% ROCE and 15%+ growth will allow
valuations Agritechs to command premium multiples
Source: Avendus estimates, Capital IQ as of Nov-2022

Agritech
Summary and
conclusion

Agritech space is observing strong traction and remains a space to be keenly observed
Key takeaways from our interactions and research
Local Entrepreneurs (LE) are key Input marketplaces & advisory Demand aggregation through Value-added services can be D2Cs have created maximum
for Agritechs to reach farmers act as an initial hook; cross- a platform is forming the base; a strong moat to scale on the value in perishables due to
sell pivotal going deeper in value chain to output market-linkage side varied customer demands and
processing, private labeling and supply chain complexity
export may form a key
» LEs enjoy decades of trust and are » Narrower TAM on input side, existing » 85% of the markup in inter-mandi » Grading, sorting of cereals crops, » Across crop (F&V) and animal
able to disburse loans and inputs distribution network of branded farm trading is due to quality uncertainty leveraging warehousing and produce (meat & milk), Agritechs
basis latent knowledge input products and low willingness -platforms enable increase trust trade facilitation, differentiated have taken full control to supply
to pay for crop advisory make them and reliability in value chain through underwriting all present significant chains to ensure high-quality needs
» Agritech who empower LEs with
hard to monetize at a larger scale supply-demand aggregation opportunities for Agritechs to make of end-customers
agronomy and access to market
and matching an impact and scale on
linkage are clearly emerging as the » Cross-sell lucrative offerings » End-to-end process control have
output market-linkage
most scalable models with minimal (output marketplaces, precision agri » Platforms will need to go deeper in enabled D2C plays to command
quality issues hardware) is usually the end goal value chain to processed foods; build » Agritech platforms that provide the highest margins across
private/white label offerings and go quality assurance (incl. traceability) Agritech ecosystem
global for sustainable and higher through deep tech are seeing
steady state margins increasing global adoption
Source: Avendus research ; F&V: Fruits and vegetables

The next decade of value creation and social change will be led by Agritechs
Potentially leading to an increase in farmers’ Agritech GMV is likely to increase by

net income by 150% 8 folds by 2027E
Net farmer income
2022E 2027E 2022E 2027E
10% 100% 20-25% $4bn 8x $34bn

of price of price
to customer to customer
Traditional Agritech
agri-value chain value chain
Agritech is the fastest growing sector in the Large outcomes created addressing one of
technology space the largest TAMs in India
50%
2022-2027E
8-10
Unicorns by 2027
GMV CAGR

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Agritech

Leading next decade's

2 Avendus Agritech Report | December 2022

Wealth AUM Best Independent Wealth Manager India Domestic

4th Best Private Banking Services Overall

INR 3,200cr+ 60+ INR 1,100cr+ A+

3 Avendus Agritech Report | December 2022

150+ 50% 55+ $3,300mn/

$10bn+ 50+ 30+

Aggregate digital & tech Transaction closures $100mn+ transactions

Undisclosed $302mn/ $227mn/ $225mn/ $125mn/

By number of deals done

4 Avendus Agritech Report | December 2022

$700mn $805mn $300mn $210mn $135mn $840mn $650mn $440mn $315mn

$200mn $150mn $137mn $130mn $45mn $315mn $300mn $1,250mn $225mn

$125mn $108mn $107mn $85mn $45mn $250mn $245mn $185mn $100mn

Transactions closed in CY22

Pankaj Naik Varun Gupta

Bandish Shah Rutvik Malekar

Ishita Parasrampuria Madhav Maloo

7 Avendus Agritech Report | December 2022

Global Outcomes and Exit 77

Summary and Conclusion 83

Globally unique, Bharat-first $34bn opportunity

Global factsheet India factsheet

$45bn 5,500+ $3bn 17

18 600 1,500+ 15mn

9 Avendus Agritech Report | December 2022

640MMT 3rd in cereal production (11% share)

155mn ha 2nd largest arable land in world, only

$169bn $35bn fish (8% share) value chain

Pre-production Production Post-production

11 Avendus Agritech Report | December 2022

Food service 12% 6 45 3 18

Used cars 13% 5 40 4 8

Agriculture 0.8% 4 493 0 0

Valuation $4bn Valuation $1bn Valuation $7bn Valuation $1.5bn

Operator of vertical farms B2B online trade platform

Valuation $2.3bn Valuation $2.7bn

Operator of vertical farms Integrated aquaculture platform

13 Avendus Agritech Report | December 2022

Funding in Agritech in India ($mn)

Series D and beyond

2015 2016 2017 2018 2019 2020 2021 9M 2022

14 Avendus Agritech Report | December 2022

Agritech GMV ($bn) Select Agritech companies

$4bn 1.5 Fiber crop

Source: Avendus estimates

15 Avendus Agritech Report | December 2022

16 Avendus Agritech Report | December 2022

17 Avendus Agritech Report | December 2022

$341bn 25mn 100%

18 Avendus Agritech Report | December 2022

on agriculture amongst major economies, but

8.1 XX Ton cereal yield per hectare per year

% agri contribution to GDP

4% 8% 12% 16% 20%

19 Avendus Agritech Report | December 2022

Producer-dominated value chain

» Informal data and credit flow

20 Avendus Agritech Report | December 2022

Farmers Village Food End consumer

FPOs/FPCs Village trader Local mandi Interstate mandi/trader