Economic Survey 2023: Private equity investments in agritech surge 50% in four years

Private equity (PE) investments in agritech skyrocketed over the past four years with an increase of more than 50 percent per annum, the government noted in its pre-budget Economic Survey on January 31, at a time when the rising demand for quality food, and macro tailwinds like climate change and food security concerns trigger renewed investor interest in the nascent sector.

According to the survey, the increase in private equity investments aggregates about Rs 6,600 crore annually. The survey highlighted that there are over 1,000 agritech startups in India that assist farmers in improving farming techniques.

“This is slowly gaining acceptance with farmers… Crop yield prediction models using artificial intelligence and drones for monitoring soil and crop health have been initiated. Smart farming also enables crop diversification, which will help farmers reduce their dependence on monsoons for water,” said the government, in the survey.

According to updated data by Venture intelligence, agritech startups raised a total of $515 million in private equity and venture capital in 49 deals in 2022, a spike of over three times from $161 million raised by agritech startups in 2020, showing how investments in the sector are above the pre-pandemic levels.