Agritech startup investment increases by two times to $4.6 billion in FY22

"Downstream investments continue to boost overall funding into the agrifoodtech space. Downstream startups raised USD 3.8 billion in FY2022, a 115 percent increase from USD 1.77 billion in FY’2021. This significant growth is due to Swiggy which raised USD 1.2 billion accounting for 26 percent of total investment in the agrifoodtech space," the report said.

Restaurant marketplace and eGrocery emerged as the most funded downstream categories, with funding of USD 1.9 billion and USD 1.4 billion, respectively.

The capital raised by restaurant marketplace and eGrocery accounts for 66 percent of total funding in the agrifoodtech space.

Farmtech startups raised USD 1.5 billion across 140 deals, a 185 percent increase year-on-year.

Mark Kahn, Managing Partner, Omnivore, said, "The investment trends are proof that the agrifoodtech space can no longer be called niche. It has caught the attention of generalist VCs the world over who understand that agrifoodtech is key to the transformation of India’s massive agricultural sector and rural economy."

Michael Dean, founding partner, AgFunder, said: "India has always been a leading agrifoodtech ecosystem…but to see investment levels surpass all other countries in the Asia-Pacific region and compete on the global stage is indicative of the impressive range and depth of innovations coming from the country and potential to impact the agrifood industry as a whole."