Agritech Startups Bringing in Next Wave of Innovations, Disrupting the Indian Agri Industry

A few years ago, many wouldn’t have thought that Indian engineers and management grads of top-tier universities would opt for agriculture over significant positions with high packages in global corporates. The agriculture industry of India is generally considered unattractive and an option for the uneducated population. In India, over 50% of the workforce is involved in agriculture, but the invention and adoption of technologies in this sector are extremely meagre.

70% of the total farmlands in the country are dependent on monsoon, while 40% of the rain-fed farmlands yield 40% less than irrigated farmlands. However, today’s reality is changing. There’s a new wave of emerging startups and blossoming entrepreneurs, who are determined to reform the agriculture sector and deploy technologies to bring in good change. As per the reports of the National Association of Software and Service Companies (NASSCOM), around $248 million worth of funding was received by Indian Agritech startups as of June 2019, which is almost 300% more compared to 2018. India has currently more than 450 startups, with a growing annual rate of 25%. These B2B Agritech startups are maturing rapidly and generating decent revenue, benefiting the farmers leveraging latest technologies. This growth rate has been attracting both global and sector-focused funds.

A lot of young Agriprenuers are involving emerging technologies like artificial intelligence (AI), the Internet of Things (IoT), and others to boost the agricultural economy of India. Based on the modus operandi, the startups can be classified into four categories:

1. Market Linkage Model
   One of the major challenges faced by the farmers is to find the right traders for their product with the right price, eliminating the middle-men, who take the major share in distribution and selling. Agri-tech startups like Crofarm, CropIn, Ninjacart and others have started acting as e-distributors, creating an e-market, giving the largest share of income to the farmers.
2. IoT-based Startups
   Combining the best of new technologies, several startups like Gold Farm, Omnivore, Intello Labs and others are providing services like information on crop yield, data collection, smart farming and others to the farmers. These startups are hugely contributing to the growth of agricultural revenue in India.
3. Big Data-based Startups
   Startups like Fasal, Aibono, SatSure and others use various technologies to give agri-lending and other services to the farmers. For instance, SatSure uses drone image processing technology and big data capabilities to innovate agri-lending services and improve crop protection. These startups are pro in using technologies to give farm-specific, data-driven diagnostics to help farmers, who want to know more about crop and soil health and others.
4. Farming-as-a-service
   This service acts as an affordable technology solution for efficient farming by identifying specific aspects of agriculture. Services included by the startups are digital payment, marketing pricing, on-demand harvesting and others. EM3 Agri Services, which is one of the prominent startups in this sector, plans to heighten productivity by mixing mechanisation and technology.