The agri-tech sector in India has seen fine progress during the COVID-19 pandemic. Investments from venture capital firms in agri-tech startups are foreseen to surpass $500 million in the next two years as many have come together to assist farmers to link with buyers, systematize supply chains and create the next layer of data analytics to crusade further in supply chain efficiency.
The sector is said to have attracted much attention, according to data from a new report, with the agri-tech index moving from 43 in March to 156 in May 2020. The factors such as locusts attack, venture funding, and investments, and the economic stimulus on agriculture contributed to this impromptu hike in popularity, according to the Wizikey Agritech report.
The Wizikey report titled ‘Buzz Word Analysis 2020 – Before COVID-19 to after COVID-19′, emphasizes the top news-generated trends in the Indian agri-tech industry. The research also analyses the overall industry sentiments before and after the COVID period. Indian agri-tech startups are supporting the agricultural ecosystem in maximizing productivity, enhancing supply chain efficiency, and developing market linkages. Due to the increase in demand for such solutions in the market, sentiment towards the agri-tech industry has been mostly neutral, and during March-May, it has seen a surge in positive sentiment. The report recognizes Ninjacart, India’s biggest tech-driven supply chain platform, as having created the most buzz in India. This is because of NinjaCart’s latest initiative that assists farmers in striving to find buyers for their fresh produce, to directly sell to consumers. Along with this unique initiative – Harvest the Farms, Ninjacart will recognize vegetables that are in excess supply, as well as those that are going un-harvested within their farmer networks. The startup plans to buy this excess produce directly from the farmers, to help them in retrieving their investments. Ninjacart was followed by Dehaat and Jumbotail.
Besides the COVID induced concerns, the agri-tech segment endures to see prospects. Some of the VCs such as Sequoia, Accel, Tiger Global, Qualcomm, Nexus, Bertelsmann, and Lightbox has become active and is drawn by the potentials of opening up with smartphone usage in India’s massive agrarian sector. According to a 2019 Nasscom report, India is home to more than 450 agri-tech startups, expanding at a rate of 25%year-on-year.
