E-grocery remained the most funded category, despite funding falling 46% year over year to $420 million.
According to the India Agri-Food Tech Investment Report 2024, Indian agri-food tech startups raised $940 million across 129 deals in 2023, down 60 percent from 2022.
While the number of deals in 2023 was 129, roughly the same as 2022’s 133, the decline in total funding suggests that average deal size has shrunk. This trend is not unique to India, as global agri-food technology investments fell 50% year-on-year due to lower deal counts and smaller sizes. Interestingly, the number of deals in India remained stable at 129, just four fewer than in 2022. Total funding in 2023 was also roughly in line with pre-COVID levels in 2019, indicating a return to more stable valuations after a period of high value.
Both AgFunder and Omnivore have identified interesting deals at the intersection of food and agriculture that extend investments beyond traditional sectors. Examples include funding for weight loss-related healthcare startups and fintech efforts targeting rural economies. Diversifying investments in this way can improve returns for the funds and highlights the interconnectedness of the food and agriculture industry with other sectors. Climate tech, in particular, is also gaining attention, as a third of greenhouse gas emissions are linked to climate tech.
Median deal sizes across all stages of funding declined significantly in 2023, signaling a decline in valuations. Early-stage deals in particular continued to attract interest from investors, but valuations declined compared to the previous year. The entire supply chain saw a significant decline in funding in 2023, with midstream startups experiencing the largest decline at 80%.
eGrocery remained the most funded category despite a 46% year-over-year decline in funding to $420 million. Agribusiness Marketplaces & Fintech was the second most funded category, raising $162 million, down 62%. eGrocery and Agrimarketplaces & Fintech combined accounted for 62% of funds raised in 2023. Additionally, deal sizes decreased as many later-stage startups raised additional bridge capital in 2023. This trend mirrors global agrifoodtech investment patterns, where later-stage startups faced down rounds and overall valuations corrected significantly.
