Investment in technology startups in the agriculture and food sector jumped over twofold to $4.6 billion during the last fiscal on the back of higher inflow in restaurant marketplace and e-grocery, according to a report by AgFunder and Omnivore.

"Total investment in agrifoodtech startups for India’s fiscal year (FY) 2022 stood at $4.6 billion, up 119 per cent from FY2021. Deal volume also increased to 234 in FY2022 as compared to 189 deals in FY2021," according to the report titled 'India AgriFoodTech Investment Report 2022'.

AgFunder is foodtech and agtech venture capital firm, while Omnivore is a venture capital firm, based in India, which funds entrepreneurs building the future of agriculture and food systems.

"Downstream investments continue to boost overall funding into the agrifoodtech space. Downstream startups raised $3.8 billion in FY2022, a 115 per cent increase from $1.77 billion in FY'2021. This significant growth is due to Swiggy which raised $1.2 billion accounting for 26 per cent of total investment in the agrifoodtech space," the report said.

Most funded categories

Restaurant marketplace and eGrocery emerged as the most funded downstream categories, with funding of $1.9 billion and $1.4 billion, respectively.

The capital raised by restaurant marketplace and eGrocery accounts for 66 per cent of total funding in the agrifoodtech space.

Farmtech startups raised $1.5 billion across 140 deals, a 185 per cent increase year-on-year.

Mark Kahn, Managing Partner, Omnivore, said, “The investment trends are proof that the agrifoodtech space can no longer be called niche. It has caught the attention of generalist VCs the world over who understand that agrifoodtech is key to the transformation of India’s massive agricultural sector and rural economy.”

Michael Dean, founding partner, AgFunder, said: “India has always been a leading agrifoodtech ecosystem...but to see investment levels surpass all other countries in the Asia-Pacific region and compete on the global stage is indicative of the impressive range and depth of innovations coming from the country and potential to impact the agrifood industry as a whole.”