Agritech startups grow in India as more incubators sprout for support

In India, innovation in agriculture has been restricted within laboratories for a long time. And that was only because the scientists and engineers who worked in this field did not know how to commercialize it. However in the last five years, about 12 agri-business incubators have sprouted in the country and about 100 agritech products have generated revenue of INR 100 million (US$1.5 million). Most of them are based in agricultural research institutes or universities. For example, Anand Agricultural University, Birsa Agricultural University, and Indian Agricultural Research Institute.

A leader in the space is government-backed Agri-Business Incubator at the International Crops Research Institute for the Semi-Arid Tropics (ABI-ICRISAT), which promotes commercialization of agricultural technology through public-private partnership. It has incubated 108 agritech ventures, of which 10 have made an impact – and a profit.

These include seed processing firm Bioseed which has expanded it footprint to Indonesia, Thailand, Bangladesh, Laos, Cambodia, Nepal, and China. The company claims to be among a few biotechnology companies with expertise across research and development, field and lab testing, data review, production, and farm management. Another firm, Aakruthi Agricultural Associates, links the agriculture research findings with grassroots initiatives. It has knowledge centres that transfer new agricultural techniques to farmers. Each centre covers approximately 15 villages.

Today, the Indian Institute of Management Ahmedabad (IIMA) which runs the Centre for Innovation Incubation and Entrepreneurship (CIIE) launched its food and agri-business accelerator. The incubator has specialized, sector-focused programs for IT, web and mobile, social impact, cleantech, and renewable energy.

“While agri investments have picked up in the recent years, support for startups at the early and pre-revenue stages continues to be limited. With this accelerator, we will be able to scout, accelerate, and invest in startups that are trying to address the existing gaps in this sector through product and process innovation,” said Vipul Patel, assistant vice president – agri investments, CIIE.

The three-month program will provide mentoring and advisory support to six startups in sustainable agriculture areas like precision farming, supply chain tech, ICT, IoT for agriculture, farm mechanization, post-harvesting technologies, and farm fresh retail.

The incubator has partnered with a German Federal Government’s body that specializes in international development, global media firm Agri Investor, and agri manufacturing firm IDMC to provide mentoring.

Some select incubatees will receive seed investment of INR 3 million (US$47,000) each from CIIE, Government’s National Academy of Agricultural Research Management (NAARM), and Goa-based accelerator Center for Innovation and Business Acceleration (CIBA).

CIIE’s sustainability focused fund Infuse Ventures may also invest up to INR 10 million (US$157,000). Other agri focused funds – such as Omnivore Partners, Aspada Investments, and Rural Agri Ventures – have committed to considering the incubatees for potential investments.