Taking cues from a top-down structural approach, the agritech industry has many layers to it. On top of them, however, like every other major industry, financial services is also a critical part of agritech. However, it is largely unorganised and has plenty of room for disruption. Most farmers in the country do not have access to credit-based lending facilities and startups like Samunnati are attempting to fill that gap.
Mark of Omnivore refers to four major spaces through which Indian startups are trying to generate some activity in agritech.
The agronomy space, being the first one, constitutes all the input-based supply materials like seeds and fertilisers, and is worth around $15 billion.
The focus here is on the direct consumer. Though the farmers are the sole sources and they cannot function without the farmers, these startups work like any other consumer brand. The largest compartment of agritech is occupied by this segment, that is outputs and market linkages. This segment contains players that take farm produce out to the market by using technology in supply-chain operations.
A relatively tougher market segment to crack, this space primarily revolves around not full-stack solutions but keeping specific technological interventions in the hands of farmers. This compartment of Agritech pertains to manufacturing and hardware materials for the farm, which is largely dominated by OEMs and existing manufacturing giants. Though there are a few startups trying to make a mark in the space, there hasn’t been anything built at scale. Despite being worth around $10 billion, this market segment in agritech is always the tougher one to crack.
Using the power and capabilities of big data, the services supported by it, and data science, there has been much buzz around alternate proteins and the startup space surrounding it. Speaking of the Future of Agritech, this market segment looks all poised to be the next big thing in the global market landscape, but not confining to India