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In-depth Analysis of COVID-19 impact on the Indian Agritech Market: Ken Research
May 2021

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The outbreak of the Corona Virus pandemic in early 2020 led to massive disruptions in various sectors and completely transformed the way industries used to function. As of April 27, 2021, the number of cases across the globe crossed 148 million and more than 3.12 million people lost their lives. India is one of the most badly hit nations due to the virus. The country is currently burdened under a deadly second wave, with average daily cases crossing 3 lakhs since April 22. The unprecedented rise in infections has left the country grappling, both economically as well as socially.

Agriculture continues to be a prominent sector for the Indian economy as it is the primary source of livelihood for over 50% of the nation’s population and contributes ~19% of the country’s GDP. In FY’2020, the total production of agri products in India reached 347.4 million tones with the total gross value addition amounting to over INR 11 lakh crores. Rice and wheat continue to be the most widely cultivated crops across the country.  Agriculture products also account for ~11-12% of India’s overall exports annually.

Impact on Covid on the Agriculture Industry: Following the trajectory of most of the industries in India, Indian agriculture sector was hit by supply chain disruptions on the onset of the pandemic, despite food being an essential commodity. The lockdown delayed the harvest of the Rabi crop due to labour and machinery scarcity as well as restrictions on transport and movement. Despite favorable winter conditions and above normal output, the sudden disruption in supply chain resulted in losses on account of damaged crop and low profitability. Regardless, agriculture was the only sector to have registered a positive growth rate of 3.4% in the first quarter of FY’2021.

Impact on Investment Activity in Agritech Sector: The investment in the agritech sector continued to spur despite the ongoing pandemic in 2020. Approximately 133 deals took place in the overall agritech space during 2020. Venture Capitalist, Omnivore, invested about ₹130 crores in 11 deals during the year as compared to ₹47 crores in seven firms, during 2019. Waycool, Ninjacart, Arya Collateral, Dehaat, Bijak, IntelloLabs, Clover Ventures, Cropin, Samunnati, Gramophone and Ergos were some of the major startups that received funding in 2020. The total investment in the agritech industry in 2020 crossed USD 300 million, growing at double digit growth rate of ~22% from 2019.

Impact on Agritech Demand and Future Outlook: Amidst supply chain disruptions most agritech startups witnessed a spike in demand for services and adoption of tech solutions among farmers. Input access platform, Agrostar, saw the revenue generated through its app triple within 3 months post the Covid-19 outbreak. DeHaat’s agronomy advisory services segment saw a ~3X spike for digital advisory services and a ~3.5X jump in overall demand. Fresh produce supply chain startup, Ninjacart, saw a ~20% rise in their app-based ordering patterns and the company’s operations returned to pre-Covid levels in December 2020. Cropin witnessed a ~128% spike in viable leads, particularly for assisted traceability and remote monitoring solutions. The startup also saw a ~37% increase in deals closed online.

Many startups also innovated and launched solutions to help farmers. In April 2020, Ninjacart launched ‘Harvest the Farms’ initiative by partnering with hyper local delivery players such as Zomato, Dunzo and Swiggy to enable farmers to directly sell produce to end customers. BharatAgri shifted to hundred percent digital on-boarding of farmers, without having to rely on an on-ground team for customer acquisition.

The covid-19 outbreak is acting as a catalyst and has got the momentum rolling for the growth of agritech in India. Tailwinds such as high level of investments, increasing rural internet penetration and financial literacy, growth in mobile connectivity are expected to stimulate the sector’s growth in the coming years. Basis all these factors, the agritech market in India is expected to grow at a CAGR of ~32.0% on the basis of revenue over the period FY’2020-FY’2025.

India Agritech Market (Basis Revenue):-

India Agritech Market Segmentations

By Nature of Services, FY’2019-FY’2020 (On the basis of Revenue)

Input Market Linkage & Farming as a Service (FaaS)

Supply Chain, Post Harvest Management & Output Market Linkage

Precision Farming, Advisory & Analytics

Agri Fintech

By Region (On the basis of No. of Agritech Startups)

Karnataka

Maharashtra

Delhi NCR

Haryana

Tamil Nadu

Telangana

Gujarat

Others

Agritech Startups Covered:-

Input Market Linkage & Farming as a Service (FaaS)

Agrostar

Dehaat

Gramophone

EM3 Agriservices

Gold Farm

Bighaat

Thanos Technologies

Supply Chain, Post Harvest Management & Output Market Linkage

Samunnati Agro

Ninjacart

Waycool

Arya Collateral

Dehaat

Farmlink

Crofarm

Agrowave

Precision Farming, Advisory & Analytics

Cropin

Satsure Analytics

Intello Labs

FarmERP

AgNext

BharatAgri

Yuktix Technologies

Fasal

Agricx

Agri Fintech

Samunnati Financial Intermediation & Services

Origo Finance

Ergos

Gramcover

Aryadhan Financial Solutions

Farmart

Jai Kisan

Poultry & Dairy Tech

Milk Mantra

Country Delight

Stellapps

Happy Cow Dairy

Eggoz

Mr. Milkman

Mooofarm

Key Target Audience:-

Agritech Companies

Input Manufacturing Companies

Venture Capital Firms

Independent Investors

Industry Associations

Rural Banks & NBFCs

Government and Regulatory Bodies

Time Period Captured in the Report:-

Historical Period: FY’2019-FY’2020

Forecast Period:  FY’2021-FY’2025

Key Topics Covered in the Report:-

Agriculture Overview, Agri Exports from India & Productivity Scenario

Demand Analysis, Farmers’ Scenario & Pain Points of Farmers

Need Analysis of Entities in Agribusiness Value Chain

Overview and Genesis of India Agritech Industry

Agritech Operating Model & Services Offered

Trends and Growth Drivers in the Industry and Challenges Faced

India Agritech Market Size and Segmentations, FY’2019-FY’2020

Investment Analysis of Agritech Industry

Government Initiatives, Agri Reform Laws 2020 & Public Private Partnerships

Industry Porter’s Five Forces Analysis

Cross Comparisons between Agritech Players in Different Segments

Future Market Size and Segmentations, FY’2020-FY’2025F

Covid-19 Impact on the Industry, Future Trends & the Way Forward

Analyst’s Recommendations

For more information on the research report, refer to below link:-

India Agritech Market

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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249