investor caution amid rising uncertainty . Meanwhile , global agritech investments declined by 10 % between calendar years 2022 and 2023 .
As per the report , while FY22 witnessed a boom in agri-tech start-up investments , which drove start-up valuations to unprecedented heights , the correction in FY23 has led to a more prudent investment climate . In a positive trend , start-ups operating in the mid-stream agritech category in India are starting to mature , as the bulk of investments (~ 75 %) in this space are now in growth ( Series B and C ) and late ( Series D +) stages , FSG ’ s analysis shows .
The latest report delves into the dynamic changes that have shaped the Indian agri-tech landscape over the last year . Some of the key findings are as follows :
Mid-stream maturation :
Investment slowdown in AgriTech
Mid-stream tech has consistently had higher ticket sizes when compared with up-stream start-ups , starting in FY20 . The report highlights that mid-stream agri-tech start-ups have begun to mature , with investments primarily in growth and late-stage funding rounds .
India ’ s agri-tech sector witnessed its most successful year in terms of venture capital funding in FY22 , followed by a significant decline in FY23 amid a global funding slowdown . While the number of investment deals rose from 121 in FY22 to 140 in FY23 , the total funding raised by agri-tech start-upsin India fell from US $ 1,279 million in FY22 to
US $ 706 million in FY23 .
For example , 56 % of investments in start-ups focusing on output linkages and quality management were in their growth and late stages .
The corresponding figure for other mid-stream start-ups , such as those offering agri-carbon or agri-fintech solutions , was as high as 91 %. Many midstream tech start-ups have also ventured into inorganic expansion through strategic acquisitions .
Early-stage deals in upstream tech :
While the upstream tech category has seen a sharp rise in total investments over the last two years , early-stage deals ( pre-seed to Series A ) continue to be the dominant investment stage in this category , accounting for ~ 50 % of total investment .
Traditional companies alter course :
Traditional agriculture companies expand their footprint across the value chain through inorganic growth , spinoffs , and pilot ventures . However , over the last two years , several key players announced plans to consolidate and streamline pilot projects and to try to refocus closer to their core business .
FSG expects this trend to continue into FY24 , with traditional companies
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