According to a new report, India’s agritech sector is likely to grow in scale and have 8-10 startups with more than a billion dollars in value each over the next five years. The report said 2-3 companies will become worthy of launching IPOs over the next three to five years.
According to investment banking firm Avendus Capital report, agritech is expected to drive the next wave of technology-led impact with a compound annual growth rate (CAGR) of around 50% over the next five years, reaching $34 billion in gross merchandise value (GMV) by 2027.
The report said the boost in growth is driven by four key factors – increasing digital penetration across India, Covid-led supply chain disruption, growing consumer interest for quality produce, and increasing private equity and venture capital interest.
Indian agritech start-ups have raised $296 million across 27 private equity and venture capital deals in the first half of this financial year, almost double the $157 million through 23 deals during the same period in FY22.
Pankaj Naik, Executive Director and Co-head of Digital and Technology Investment Banking, Avendus Capital, said, “Agriculture which contributes $530 billion to India’s GDP, sees less than 1 percent tech penetration. The unique innovations in production, supply-chain/ market linkage, quality assessment, and digital traceability have the potential to become ‘from India to the world solutions’. Going forward, we expect to see higher deal activity led by growth funds followed by IPOs in the latter half of the decade.
