Agripreneurship

Agri-Startups and Agribusiness for the Development of Agriculture

Agri-Startups and Agribusiness for the Development of Agriculture in Maharashtra
Discussion Paper 14
MANAGE- Centre for Agricultural Extension Innovations, Reforms, and Agripreneurship (CAEIRA)

Agritech-startups is a versatility tale and a new one. It is about exploiting technologies by the absolute dedication and creating solutions to indigenous issues. The road is less travelled, but it can unravel significant treasures while also pulling the agriculture sector out of the dark. India witnessed deals that are made up for 4.7 percent of the total deals globally and attracted 9.5 percent of the total startup investment amounts raised. Food and beverage, e-commerce, and fintech are three of the exceptionally performing startup sectors in India this year. While seed funding amounts were quite lower than the global average, venture funding amounts were twice the global venture funding figures this year. People are conscious about risk and rewards and India is referred to as a price-sensitive market. Indian markets are largely unorganized and fragmented which creates a roadblock for a startup to succeed. The behavior of Indian consumers changes every 30-50km that makes it really difficult for a startup to create a business or market strategy for their products or services. Most startups generally get stuck in stagnancy and gradually shut down. India is a place of varied culture and taste thus, every product might not be welcomed equally in every region. Appropriate IT-infrastructure has become a need for Indian businesses given the growing number of consumers online. Most startups are self-subsidized with a small workforce, making financial and operating records impossible. Farmers and Agritech startups have evolved rapidly over the past few years due to digital penetration and funding, majorly driving the growth of this sector. Solutions focused on developing a strong supply chain remain a key priority for all stakeholders. B2B is considered to be the biggest revenue-generating stakeholder due to long term business sustainability. Outlook in 2020 should be towards driving innovation, data collaboration, easy working capital and providing digital infrastructure.

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