Hemendra Mathur, a partner at Bharat Innovation Fund and a prominent figure in India’s agritech sector, recently shared insights on his journey, the challenges faced by agritech startups, and the evolving trends in the sector. Mathur’s unique position as an ecosystem enabler, mentor, and investor provides a comprehensive view of the agritech landscape in India.
Mathur’s journey in agritech began serendipitously in 2008 when he noticed a surge of young tech entrepreneurs entering the agriculture sector. Intrigued by this shift, he started mentoring these startups, providing guidance and support. His work with Rabobank and a private equity fund gave him a solid foundation in banking, consulting, and investing, which he leveraged to drive innovation in the agritech sector. Today, he is involved in several key initiatives, including the development of Agri Stack, a government-led data repository for agriculture, and the Open Agri Net, an open network for agriculture services.
The Indian agritech journey has been marked by distinct phases. From 2010 to 2017, the sector was in an experimental mode, with impact-led investments from impact investors. The pandemic marked a significant inflection point, with increased digital adoption by farmers and consumers. This shift brought agritech into the mainstream, with large investors taking interest and supporting startups through multiple funding rounds. However, post-2022, the focus shifted from growth to profitability, with investors asking tough questions about the bottom line.
Mathur highlights several challenges faced by agritech startups in India. The most significant is the talent gap, with agriculture not being a career of choice for young professionals. Additionally, differing state regulations, lack of standardised policies, and limited access to public datasets and physical infrastructure pose hurdles. Despite these challenges, there are opportunities in areas like agri-biotech, deep tech, and fintech for farmer financing.
Comparing agritech trends in India with those abroad, Mathur notes that global agritech focuses on farm-level interventions due to larger farms and streamlined supply chains. In contrast, India’s complex supply chains have led to the dominance of farm-to-table models. However, Indian solutions are portable to other smallholder-dominated regions, offering unique opportunities for innovation and growth.
Mathur’s insights underscore the need for a supportive ecosystem, including policy interventions, talent development, and infrastructure, to drive the agritech sector forward. As India’s agritech sector continues to evolve, the focus on profitability, innovation, and scalability will be crucial for its success.