According to a joint report by AgFunder and Omnivore, venture capital (VC) investment in India’s agrifood sector reached $4.6 billion in FY 2021-22, up 119 per cent from $2.1 billion the previous fiscal.

According to the joint report, India has surpassed China as Asia-largest Pacific’s funder of agri and foodtech innovation.

The cumulative funding was also boosted by large deals in downstream food delivery categories, while technologies operating closer to the farm closed more deals, according to the report.

Farmtech startups raised nearly $1.5 billion in 140 transactions, representing a year-over-year increase of 185 per cent.

Following the Covid-19 pandemic, food delivery services increased total investment, with restaurant marketplaces and e-grocery startups securing close to $3 billion, accounting for roughly 66 per cent of total investment in FY22.

According to the report, e-grocery startups raised $934 million across 42 deals, a fourfold increase from $244 million across 25 deals in FY21.

Upstream surpassed downstream in terms of deal volume for the second year in a row. In FY22, 121 upstream deals were completed compared to 113 downstream deals.

In FY22, the agribusiness marketplace overhauled midstream technology to become the most funded upstream segment.

In this space, startups such as Ninjacart, Jumbotail, and Vegrow operate.

According to a September report by Kalaari Capital, precision agriculture and aquaculture accounted for approximately 23 per cent of the total $1.6 billion in venture capital invested in agritech in FY22.

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