Agritech startups account for only 2% of venture funding since 2020

During the 2021 to 2022 period, the agritech sector in India received strong support from the startup ecosystem, venture capitalists, and the government which created significant initial momentum. However, this early promise has faded as funding has almost disappeared and major players such as Ninjacart, Dehaat, and Waycool who were close to becoming unicorns remain stuck in the same phase with their funding plans shelved. Over the past couple of years, a number of shutdowns and layoffs have taken place in the segment which shows that agritech requires a fresh green revolution as it faces serious challenges to survive.

According to data compiled by TheKredible, over 160 agritech startups in India have collectively raised more than $2 billion between January 2020 and the first half of 2025. This includes 246 funding deals, with growth-stage startups securing $1.59 billion across 60 deals, while early-stage ventures attracted over $500 million through 186 deals.

While the total fundraise since January 2020 stood at around $107 billion, agritech startups have accounted for only 2% of the total venture capital inflow. This reflects a major gap when compared with fintech, SaaS, e-commerce, healthtech, and edtech.

Despite substantial capital inflow, the agritech sector has not yet produced a single unicorn, unlike the broader Indian startup ecosystem, which has more than 120 unicorns. For perspective, the top three funded companies such as Ninjacart, Dehaat, and Waycool raised their most recent major equity funding in 2022 at valuations of $815 million, $705 million, and $700 million respectively.

Visit TheKredible detailed breakdown of agritech funding since 2020

Year-on-Year funding in Agritech

The period between 2021 and 2022 represented a golden phase for the Indian startup ecosystem with a significant increase in venture capital inflow across sectors. Agritech also experienced its peak during this time as funding rose four times in 2021 to more than $630 million, up from $155 million in 2020. Building on this momentum, the sector recorded an additional 25% increase in 2022 and attained $802 million, its highest level so far.

After reaching its peak in 2022, investor interest in the agritech sector declined steadily. In 2023, funding fell sharply by 78% to $178 million. Although there was a modest recovery in 2024 with an increase of nearly 30%, the momentum did not last, as funding dropped again by 58% in the first half of 2025, falling to just $96 million.

According to Venture Intelligence data, total funds raised by Indian agritech startups stood at $222 million in 2019 and $89 million in 2018.

Top funded Agritech startups

Some heavily funded startups continue to lead the agritech space, with Walmart-backed Ninjacart topping the list with over $370 million raised. Its most recent funding was in May 2022, when it secured $9 million at a valuation of $815 million. Following Ninjacart are WayCool and DeHaat, which have raised $307 million and $270 million respectively, both reportedly valued around $700 million.

Revenue wise, most of the top funded platforms are dealing in gross merchandise value (GMV), which essentially represents the total value of goods transacted through the platform. 

Other top-funded agritech startups include Noida-based Arya.ag ($174 million), AgroStar ($120 million), Absolute ($115 million), Jai Kisan ($92 million), Vegrow ($86 million), Ecozen ($70 million), and Farmart ($63 million).

City-wise funding since 2020

City-wise, Delhi-NCR-based startups led the agritech funding landscape, raising over $851 million across 71 deals, accounting for 40.6% of the total funding. Bengaluru-based startups followed with 76 deals amounting to more than $550 million, representing 26.25% of the overall funding. Chennai, Pune, and Mumbai secured $254.75 million (18 deals), $149.89 million (20 deals), and $145.55 million (16 deals), respectively. Startups based in Hyderabad, Kochi, Ahmedabad, and several other Tier-II cities also attracted notable investments during this period.

Challenges

A group of startups including Fraazo, Otipy, and Deep Rooted secured significant funding for their farm-to-fork business models. However, none of them managed to sustain operations in the long term, ultimately shutting down after failing to raise additional capital and scale effectively. These setbacks have sparked debate about the long-term viability and scalability of the farm-to-fork approach, especially in India where supply chain complexities, thin margins, and intense competition from traditional distribution channels pose significant hurdles. ReshaMandi, another prominent startup in the silk supply chain sector, also ceased operations amid corporate governance controversies such as revenue inflation and fake invoices. Despite the difficulties in fundraising, the agritech sector has not witnessed the level of consolidation that many had anticipated. 

Agritech-focused funds and govt’s initiatives

Since 2024, over 210 venture capital, private equity, and government-backed funds have been launched to support the Indian startup ecosystem. However, only 23 of these specifically focus on agritech startups, including Northern Arc, Stride Ventures, Alteria Capital, Orient Growth Ventures, Omnivore, and others. Funds exclusively focusing on agritech remain scarce. Among them, government-backed funds such as AgriSURE launched a $90 million fund last year to support agritech ventures.

To further promote innovation in agritech, the Indian government has introduced multiple schemes focused on early-stage startups. The Innovation and Agri-Entrepreneurship Development Programme, launched in 2018 under RKVY RAFTAAR, provides funding, mentoring, and incubation support to agriculture startups. Likewise, Agri Udaan, initiated in 2017, is a food and agribusiness accelerator program aimed at scaling agritech startups and fostering innovation in the agriculture sector.

Check TheKredible for agritech-focused fund launches since 2024

Conclusion

The future continues to look bleak as far as funding goes for the sector, even as individual entrepreneurs and even government backed schemes continue to have the potential to  surprise on the upside. The reason is quite obvious. The umbrella of heavy handed government policies, government backed bodies involvement in the sector blots out not just the sunshine of fresh new ideas, but also the prospects for those who did manage to raise funding. Much like the micro-finance sector that is going through its cyclical hiccups linked to political decisions, the Agritech sector has simply failed to scale every time a firm does manage to get investor backing for a good idea. Too many firms that set out to work with a farm to fork approach pivoted to a more conventional ‘Mandi to fork’ approach, which offers very limited value add, counts on a stagnant middle class base, and for all that, offers little margin for errors. Segments like seeds, nutrients, shifting farmers from staples to cash crops, or even better management of subsidies offer huge opportunities, but need a long runway to show results. Certainly something few VCs have the stomach for. 

One is almost tempted to say that a for profit initiative at scale is doomed in the present environment, but with the slow and inevitable changes underway in the sector due to possible trade deals, one will hope that the ingenuity of the Indian entrepreneur and farmer will find a way to deliver some standout firms in time. God only knows we need it to add some dynamism to the sector, and open up the most critical and poorly managed sector of the economy when it comes to jobs and overall impact potential.