EY report predicts Agritech startups to account for $24 billion by 2025
In its report ’Agritech-towards transforming Indian agriculture’, Ernst & Young (EY) recently revealed that India’s burgeoning startup ecosystem has been actively playing its part in disrupting the agriculture sector. According to EY, the multinational professional services firm headquartered in London, agritech startups are operating in an attractive market with an estimated potential of $24 billion by 2025.
The report states that agritech companies have received investments of $532 million till April this year. But, despite witnessing strong investment activity in the last few years, market penetration in the sector is still very low at around one percent, the report added. Ankur Pahwa, Partner and National Leader E-Commerce and Consumer Internet, EY India said that there would be consolidation in the industry as larger players begin to acquire regional players to achieve scale in market linkages and extend into other service domains as well.
Pahwa added that global investors can harness their learning from their success stories in the agritech segments to help them realize their full potential in India. In July, 2020, Narendra Singh Tomar, Union Minister for Agriculture had said that Indian government will fund 112 startups in the first phase, with a sum of Rs 11.85 crore in the current financial year.
