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Sunday, November 28, 2021

Egreens Sets Up Rs 15Cr Fund for Early-Stage Agritech Start-Ups

Agritech business is one of the most potent solutions for tackling some of the world’s major problems. It has become an integral part of the global economy that is seeing more technology-focused companies enter the market. The Agritech industry is poised to grow exponentially with a projected growth rate of 3.7% by 2021. The Agri-Tech industry basically employs science and technology to aid in agriculture. The use of technology or other natural sciences is to improve the efficiency of production, quality of products, productivity as well as overall output from the farming sector. It also includes using data-driven information for making decisions to increase efficiency and other business metrics.

Agritech start-ups in India

With the increased use of technology in agriculture, agritech companies are emerging across India. These start-ups provide solutions in the field of precision farming, smart irrigation systems and soil health management. The agritech start-ups in India are looking at the opportunities that are being thrown up by various government initiatives, especially on the ‘Digital India’ front. The central government has launched a number of schemes for farmers, including soil health cards to track the nutrient status of their farms and an initiative called ‘Green Button’ to collate data on weather patterns and crop conditions among others. Agriculture is a sector that’s growing rapidly in India, with agritech start-ups emerging to provide solutions for farmers and entrepreneurs alike. Here are some of the most promising agritech start-ups in India, Ninjacart; WayCool; AgroStar; DeHaat; and many others. Agritech start-ups in India is still at a nascent stage and much needs to be done for this industry to come out of the shadows and gain recognition.

Agriculture start-up funding in India

Considering all the current growth of the agritech industry in the Indian market, one of the investment firms, Egreens decided to invest Rs 15 crore in the agritech start-ups. Egreens has its own venture which is VegEase that provide products like vegetables and fruits with the strategy of cart-at-home. Egreens has already invested additional Rs 15 crore for its own venture, VegEase. And now thinking to fund more in the agritech industry. As stated by Egreens, the main aim of the company behind this huge investment is to focus on agritech start-ups that utilise disruptive business models and innovative technologies across the whole value chain of food production, transportation and storage. 

The agriculture industry has been going through a lot of radical changes in recent years. Farmers have always been a special breed, but today, they’re facing a whole new set of challenges. Factors ranging from fluctuating crop prices to increasingly unpredictable weather patterns have led many farmers to seek out innovative solutions for their survival. Innovative solutions are not only being sought out by large-scale farmers either. The smaller family-owned farms are also looking at ways to reduce costs and increase profits while still maintaining production. Agriculture and technology are two very important aspects of the business. The agriculture industry is one of the largest industries in the world, as it provides us with essential goods such as food, water and clothing. This industry exists for the purpose of making our lives easier and better.

The agricultural supply chain in India is very fragmented, with last-mile delivery being almost missing. Therefore, it offers a tremendous opportunity to identify and invest in the right start-up who is trying to solve this problem.” As stated by the founder and CEO of Egreens, Mayank Chaurasia. 

The main focus of Egreens includes linkages of the innovative market, implementation of the Internet of Things (IoT) within the supply chains, and the utilisation of machine learnings and AI in farming practices. Egreens is looking forward to investing in agritech start-ups that will sooner or later create backwards and forward integration with VegEase. The founder and CEO of Egreens, Mayank Chaurasia has also stated that currently, VegEase is working in the B2B segment, but our company is targeting to expand the business in the B2B and B2B2C segments in the different markets. 

Agriculture is the backbone of any developing country. Agriculture helps in uplifting the standard of living of millions of people. The need of the hour is to go for sustainable agriculture, which will help in developing a strong economy. We are not just talking about food security but also water, energy and other resources which are needed to run the supply chain in an economically viable way. The concept of sustainability starts from seed selection all the way through to post-harvest processing. The focus should be on technologies that are economical, perform better with fewer inputs and have a low impact on the environment. Agricultural sustainability has been a concern for many years. In the past, there were various kinds of chemicals used in agriculture which was not very sustainable. Therefore, it is important to note that technology has helped to make agricultural farming more efficient and also more sustainable.

With innovative technology and a wide supply chain network, the venture of Egreens, VegEase has gained about Rs7 million turnovers along with a wide base of consumers in the Delhi/NCR region which is about 15,000. It also has been expected that more consumers, about 5000 new consumers are going to add to the list and the return rate will increase by 0.25% by the end of 2021. The agritech industry is doing great and it has contributed a lot to the economy. The agritech businesses are growing at a rate of 9% and are expected to reach a market worth $1.5 trillion by the end of 2025. It is important for investors to start getting interested in this promising business as they can make some huge returns on their investments. With the world population expected to rise from 7.4 billion now to 9.6 billion by 2050, Agritech is a booming industry with great potential for growth and expansion in the coming years.

Also Read: National Logistics Policy Can Provide a Major Boost to the Sector

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Daniyel Chatterjee
Daniyel Chatterjee is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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