Agritech startups close to farmers as well as the supply chain experienced a 24% YoY hike in investments. This led to the overtaking of consumer-facing companies, according to the AgriFoodTech Investment report for 2023.
In 2022, farm-to-fork agritech startups gathered $6.5 billion in funding located in the Asia-Pacific region. This was a 58% decrease compared to the $15.2 billion raised in 2021.
However, upstream startups got around $3.2 billion in 2022 as compared to downstream’s $2.7 million, according to AgFunder, the Bill and Melinda Gates Foundation, etc. reports.
The sudden shift in upstream innovation will continue in 2023, as per the preliminary data offered on funding flows in 2023. During the initial half of this year, the total and complete investments were around $2.6 billion, which represented a 50% decline compared to 2022’s H1.
According to the sources and reports, the innovation of downstream food delivery, which was loved within the Asia-Pacific agritech ecosystem, which is in China, lost its appeal as a sector that was dominated by some leaders.
Agritech Race: Position of India and China
When it comes to deal value, India overtook China in 2022. It secured the position with funding of $2.3 billion. But in the initial half of 2023, China got back to its lead after raising around $861 million, whereas India raised $712 million.
In 2022, upstream startups in the category of agriculture biotechnology had $813 million in funding. This category experienced a boost raised by India’s platform, Absolute Foods. Whereas, China’s Zhongxin Breeding secured $327 million and became the largest deal of 2022.
Also, Tridge emerged as a non-Indian company to secure its place in the top deals for Series D as well as late-stage investment in 2022. But the DeHaat and WayCool presence in the top deals showcases that the major investments were also flowing into the midstream as well as upstream sectors.
Midstream technology startups were able to connect with farmers, food producers, retailers, and other clients. This allowed us to raise around $620 million in 2022, which benefited India’s WayCool as well as China’s Mojia Biotech.
In the previous year, Indian startups not only got top deals but were able to secure maximum deals of around 31. Whereas, Indonesia got the second-highest deals of around nine. India’s population and massive geographical presence are some factors contributing to maintaining its leadership in the category, according to the reports.
