The Asia-Pacific (APAC) agrifoodtech ecosystem is witnessing a remarkable resurgence in 2024, with startups in the region raising approximately $4.2 billion, marking a 38% increase compared to the previous year. This growth comes despite the broader challenges facing the global venture capital landscape, highlighting the resilience and potential of the agrifoodtech sector. According to a recent report from AgFunder, this funding surge represents 31% of the global agrifoodtech investment, a significant rise from the 26% average over the past decade.
Leading the charge is India, which has reclaimed its status as the best-funded country in the APAC region for agrifoodtech, attracting a staggering $2 billion so far this year. This figure accounts for nearly half of the total funding in the region. A significant contribution to this total comes from the eGrocer Zepto, which has successfully raised around $1 billion across two late-stage funding rounds. This performance underscores the growing consumer demand for online grocery shopping and the innovative solutions being developed to meet this need.
China, while slipping to second place, has shown resilience with its agrifoodtech startups raising 18% more than during the same period last year, totaling $1.2 billion across 230 deals. This uptick indicates a recovery in investor confidence and interest in the Chinese market, particularly in the wake of previous economic uncertainties. Japan has also made strides, climbing three spots to secure third place with a remarkable 58% increase in funding year-over-year.
In terms of sector performance, the eGrocery category has emerged as the top performer, garnering $1.5 billion in funding. This growth has been largely driven by Zepto’s success in India, but it also reflects a renewed enthusiasm for eGrocery solutions in China, where startups have collectively raised over $300 million. Meanwhile, upstream sectors like Bioenergy and Biomaterials attracted attention despite a 46% year-over-year decrease in funding, totaling $475 million. This decline suggests a potential recalibration of investor priorities, as they may pivot towards more immediate and high-growth opportunities.
The Ag Biotech sector has also seen a positive trajectory, with over $390 million raised, marking a 30% increase in funding across 86% more deals. This growth can be attributed to significant activity in China, where innovation in agricultural biotechnology is gaining traction. Additionally, Midstream Technologies have raised $578 million, an impressive 88% increase from the previous year, indicating a growing interest in solutions that enhance supply chain efficiencies.
Funding trends also reveal insights into the maturity of investments within the agrifoodtech space. Seed-stage deals have seen a 13% increase in funding year-over-year, although they were executed across fewer transactions. In contrast, Series A rounds have surged, raising nearly 52% more capital with a 90% increase in deal count. Late-stage rounds have experienced an extraordinary 133% increase, with 44 deals recorded, more than doubling the 17 deals from the same period last year. This shift suggests that investors are increasingly confident in the scalability and viability of agrifoodtech startups, particularly those that have reached later stages of development.
The report, supported by contributions from AgriFutures (Australia) and Omnivore (India), along with data partnerships across the region, paints a promising picture for the future of agrifoodtech in APAC. As the sector continues to recover and evolve, the emphasis on innovation and sustainability will be crucial in addressing the pressing challenges of food security and environmental sustainability. The significant investment influx not only reflects confidence in the sector but also signals a transformative shift in how food systems are being reimagined across the Asia-Pacific region.