TLDR:
- eGrocery and Agribusiness Marketplaces & Fintech are dominant categories for agrifoodtech funding in India.
- However, Bioenergy & Biomaterials are on the rise, with Indian startups in the category raising $14 million in 2023.
In 2023, startups in eGrocery and Agribusiness Marketplaces & Fintech continued to receive the highest funding in India, accounting for 62% of the country’s total agrifoodtech funding. Despite this, there was a notable decrease in funding for both sectors. eGrocery saw a 46% year-over-year drop to $420 million, while Agribusiness Marketplaces & Fintech startups raised $162 million, a 62% decline from 2022.
Other food delivery-related categories like Online Restaurants & Meal Marketplaces also received significant funding in 2023. However, a new trend emerging in the Indian agrifoodtech scene is the increased interest in Bioenergy & Biomaterials. Indian startups in this category raised $14 million in 2023, reflecting a growing emphasis on sustainable solutions and innovative materials in the industry.
One example of a company making waves in the Bioenergy & Biomaterials sector is altM, a Bangalore-based startup that uses post-harvest crop residue to create biochemicals and biomaterials, aiming to provide additional income streams for farmers and reduce environmental impact. AltM’s successful fundraising efforts in 2023, including a $3.5 million round led by Omnivore, highlight the potential for growth and innovation in this emerging field.
Overall, the shift towards Bioenergy & Biomaterials in India’s agrifoodtech landscape indicates a broader movement towards sustainability and holistic solutions that address not only food production but also environmental and social challenges.
