Cultivating Change : How agri-tech startups are redefining agriculture in India
BY Avni Vijaywargi/ October 1, 2025
DESIGNED BY Anuya Shindolkar
On the Frontlines of the Farm : How Startups are Equipping India’s Farmers with New-Age Tools. From AI-powered crop monitoring to hyperlocal weather forecasts, a new wave of agri-tech innovation is transforming rural livelihoods.
ndia’s economic and social fabric has long been woven around agriculture, a sector that continues to sustain rural life as well as national growth. According to statistics provided by the World Bank, agriculture still makes up about 16% of India’s economy, despite the tremendous growth of other sectors. Beyond its economic contribution, agriculture is the primary livelihood source for more than 45% of the population (PIB, 2023), especially in rural regions. It continues to provide employment, coupled with food security. However, despite this significance, the sector continues to grapple with deep-rooted inefficiencies and structural challenges. A large share of agricultural activity is carried out by small and marginal farmers who own less than two percent of land and often lack access to modern farming techniques, irrigation facilities and reliable market linkages. This results in low productivity, dependence on unpredictable weather and income insecurity.
Further compounding this problem is India’s traditional agricultural supply chain, characterised by multiple intermediaries, high transaction costs and weak infrastructure for storage and transport. This leads to high post-harvest losses with farmers forced to sell at low prices due to lack of access to cold storage or direct buyers. Inadequate processing facilities and poor market integration further exacerbate inefficiencies, causing significant wastage of produce and limits farmers’ profitability.
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It is precisely in response to these challenges that agri-tech solutions have gained prominence. Startups in this sector use technology to directly tackle the issues outlined above.
For example, mobile platforms and digital marketplaces link farmers to businesses and consumers, reducing dependence on middlemen and guaranteeing higher price realization. Farmers may boost yields, and adjust to climate risks with the use of precision farming instruments and data-driven advising services. Similarly, tech-enabled logistics and cold-chain innovations reduce post-harvest wastage and improve storage, ensuring produce reaches markets in better condition.
Agri-tech startups played a significant role in keeping the supply chain alive and meeting the demands of the consumers.
During the COVID-19 pandemic, a major challenge arose in maintaining the supply chain. When the pandemic struck, nationwide lockdowns and mobility restrictions created severe disruptions in agricultural supply chains, leaving farmers struggling to sell their produce and consumers facing shortages. Agri-tech startups played a significant role in keeping the supply chain alive and meeting the demands of the consumers. The agri-tech startups were able to maintain the food supply chain by connecting farmers, distributors, retailers and consumers. Ninjacart, for example, restored operations to pre-covid levels within a month, with a 20% surge in app orders during the lockdown, enabling direct connections between farmers and retailers. AgriBazaar set up an e-mandi, substitute for a physical mandi during the pandemic. Once a farmer registered and uploaded the produce, buyers like merchants, traders and corporations were able to give orders for purchase, removing supply chain issues. (Economic Times, 2019). The pandemic also accelerated a shift that had already been underway due to the rise of affordable smartphones and falling data costs in rural India, which enabled more than 30 million farmers to come online. With farmers becoming increasingly connected, digital marketplaces and advisory services grew rapidly, creating new links between cultivators, retailers and end-consumers.
Illustrated: Unknown via Pinterest
Boom of Agri-Tech Startups
Some of the most significant startups, working specially for smallholder farmers are Kheyti, DeHaat and Fasaal. Kheyti, founded in 2015 offers a modular, low-cost “Greenhouse-in-a-box” solution tailored for small farmers. The innovation is simple yet powerful, a 216 square metre greenhouse that protects crops from extreme weather and pests while using 90% less water and increasing yields by up to 7 times. The kit that is provided by Kheyti includes drip irrigation, shade nets and training in modern agricultural practices. Kheyti also trains the farmers to ensure the greenhouse is as effective as possible by teaching them its proper uses. To ensure accessibility and maintain fair prices, Kheyti partners with banks and Microfinance Institutions (MFIs) to offer flexible financing options. According to data provided by Kheyti themselves, farmers using this system have seen income increases of INR 60,000 - INR 1,00,000 annually. The Startup’s approach exemplifies design-thinking, as they have co-created the solution with over 1,000 farmers before scaling and as a result, the greenhouse kit is adaptable to regional climates and cropping patterns. In 2022, Kheyti received global recognition by winning the Earthshot prize.
DeHaat is also one of India’s fastest growing agri-tech startups. They build AI-enabled technologies to revolutionise supply chain and production efficiency in the farming sector. Currently, they operate in 12 Indian agrarian states like Bihar, Uttar Pradesh, Jharkhand. with an extensive network of 11,000+ DeHaat centers, and 503 Farmer Producer Organisations (FPOs), serving 18 lakh+ farmers. They provide AI-enable crop advisory to farmers for 30 plus crops in regional languages. DeHaat’s market linkage model connects farmers to institutional buyers, bypassing middlemen and ensuring increased prices, upto 20%.
Fasal is another inventive agri-tech startup. They use Internet of Things (IoT) sensors and AI to enable precision farming. The sensor monitors soil moisture, temperature, humidity, and rainfall and sends real-time insights to farmers via a mobile app. The mobile app also sends alerts to farmers such as when to water, how many litres as well as customised fertiliser recommendations. They also provide disease and pest forecasts using microclimate data. Fasal currently operates in states like Karnataka, Chhattisgarh, Tamil Nadu, Andhra Pradesh. The startup faced challenges like rural connectivity and initial adoption barriers, but Fasal’s impact has been significant, demonstrating a 20-30% increase in yields and a 40% reduction in water use. Fasal has been successful with their technologies, considering the case of a grape grower in Nashik who struggled with inconsistency with berry sizes and fungal infections during pre-harvest stages. After the installation of Fasal’s sensors and activation of its AI-powered pest prediction module, the farmer received timely alerts on disease risks and irrigation needs, resulting in improved harvest in volume and uniformity. His input costs also dropped by 30% (Focus Agritech).
E-commerce integration has become a significant trend in the agri-tech sector, with platforms like BigBasket and Reliance Fresh increasingly collaborating with agri-tech startups to streamline sourcing and improve agricultural supply chains. These collaborations leverage digital technologies to connect directly with the farmers, resulting in better price realization for producers and access to high-quality, traceable products for consumers. Reports highlight that such e-commerce partnerships enable data-driven crop management, transparent procurement practices and accelerated logistics, all of which reduce inefficiencies and post-harvest losses (IBEF, 2023).
Challenges Facing Agri-Tech Startups and Digital Adoption
While all these startups are emerging and have been successful, there are still some significant challenges that need to be addressed. Since the industry is relatively new, and lacks a concrete foundation people are wary of investing in agritech startups. According to India AgriFoodTech Investment report and Bain & Company Fintech Report, AgriTech received funding of USD 4.6 billion in 2022, while fintech received USD 19 billion in 2021-2022. Despite growing importance, funding for agri-tech still lags behind the broader tech industry, partly because agriculture lies outside traditional innovation hubs and investor focus. While some state governments have stepped in with grants such as Maharashtra’s INR 500 crore MahaAgri-AI policy, these efforts remain limited in scale. As a result, agricultural start-ups face the added pressure of achieving profitability much earlier than their counterparts in other sectors.
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Moreover, rural areas often suffer from inadequate internet access, which is of utmost importance when it comes to using agri-tech startup apps. Other than this, low digital literacy is prevalent in smallholder farmers, many of them being first-time smartphone users. This becomes a hurdle when it comes to using farming apps, hindering farmers from fully benefitting from innovations tailored for them that could improve productivity. Furthermore, many farmers have traditionally depended on local or familiar traders they know personally, leading to hesitation in adopting unfamiliar digital apps and online platforms for selling their goods or obtaining information. A digital divide also exists, as younger farmers can easily adapt to smartphones while those above the age of 45 struggle with it. This creates uneven participation as some benefit from technology while others are left behind.
Sustainability Through Agri-Tech Innovation
Beyond increasing efficiency and profitability, agri-tech startups are becoming major advocates of sustainable farming practices in India.
Beyond increasing efficiency and profitability, agri-tech startups are becoming major advocates of sustainable farming practices in India. Climate change, water scarcity, soil degradation and excessive chemical use threaten the long-term feasibility of agriculture, these startups are providing solutions that balance both productivity and responsibility.
Technologies like remote sensing, IoT devices and AI-powered platforms are helping farmers use water, fertilizer and pesticides more wisely. Precision agriculture, used by startups such as Fasal and BharatAgri, relies on real-time weather and soil data to advise farmers on when and how much to irrigate or spray. This approach conserves natural resources. Additionally, agri-tech startups promote sustainability by reducing post-harvest losses and food waste. In India, approximately 20-30% of agricultural output is wasted between the farm and market, primarily because of inadequate logistics and insufficient cold-chain facilities (ResearchGate). Startups are now creating supply chains connecting farmers directly to the consumers, cutting down on transport time and spoilage.
Many agri-tech ventures are also encouraging the shift towards organic practices, which are essential for long-term sustainability. Platforms such as AgroStar, BigHaat, and Kheyti provide access to bio-inputs, natural pest control methods, and training that helps farmers move away from chemical-intensive farming. These practices improve soil health, and boost the land’s capacity to absorb carbon. Moreover, startups like EcoZen and CoolCrop are also tackling rural energy challenges by developing solar-powered cold storage solutions and irrigation pumps, reducing dependence on diesel and making farm operations more sustainable. Importantly, by adopting sustainable practices, farmers can also position themselves to benefit from global carbon markets and rising corporate ESG mandates, where sustainability is increasingly viewed as an economic opportunity rather than just an ethical obligation. Many corporations are under pressure to meet net-zero commitments and demonstrate compliance with ESG (Environmental, Social, and Governance) standards. This has resulted in an increasing demand for carbon credits produced via sustainable agricultural practices like organic farming, reduced fertilizer use or regenerative soil management. Agri-tech startups play a vital role here by supplying the data, traceability and monitoring systems needed to quantify these practices. For example, startups using remote sensing technologies can certify reductions in pesticide use or improvements in soil carbon.
At the policy level, agri-tech startups are aligning with government sustainability initiatives such as the PM-KUSUM scheme which promotes solar-powered irrigation and the National Mission on sustainable agriculture.
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Government Support for Agri-Tech
The government has launched various schemes in support of Agri-tech such as the RKVY-RAFTAAR or Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sector Rejuvenation. It was launched in November 2017 and is one of the most direct government efforts supporting Agri-tech. Under the scheme the components of Startup and Agri-Entrepreneurship companies qualifying as startups are offered up to INR 25 lakhs in seed-stage funding and mentorship through rural-agribusiness incubators. The main objective of Agri-Business Incubators (ABIs) is to encourage, nurture and support technologists, scientists and innovative agribusiness ideas to turn their innovations into sound commercial ventures. Such technology incubation centres help in initiating technology-led and knowledge-driven enterprise, (Indian Council of Agricultural Research). It has completed 9444 projects till date with a total cost of 68371.35 INR Crore. It has more than 19000 approved projects and 9601 on-going. RKVY-RAFTAAR projects have been a success and have managed to increase farm income and improve the overall socio-economic status of the beneficiary farmers.
Another important scheme is the NABVENTURES or NABARD Venture Capital Fund which was launched on May 13, 2019. It is a SEBI-backed fund that provides equity capital to agri-tech startups in growth stages. It also funds solutions in precision farming, supply chain tech and fintech. Its key focus areas are agriculture, food and rural sectors. As of 2025, it has made around 25 investments, with 11 active portfolio companies, channeling nearly INR 258–315 crore into about 12–13 startups across the agritech and rural ecosystem. This makes it one of India’s leading sector-focused funds driving innovation in precision farming, agri-supply chains, and rural fintech. (National Bank for Agriculture and Rural Development)
Agri-tech innovations are playing a key role in enhancing smallholder incomes and strengthening rural economies. For instance, satellite-data solutions deployed by CropIn in Andhra Pradesh enabled farmers to raise per-acre profits from just INR 5,000-10,000 to nearly INR 20,000 (Reuters). Such gains directly contribute to SDG 2 (Zero Hunger/Food Security) by not only improving household incomes but also stabilizing food supply chains. On the innovation front, India has seen remarkable growth with a 25% year-on-year rise in the startup ecosystem, expanding from about 50 agri-tech startups a decade ago to more than 3,500 today. This reflects alignment with SDG 9 (Industry, Innovation, and Infrastructure).
Yet, the expansion highlights a dichotomy, while India demonstrates entrepreneurial dynamism, it continues to lag in digital infrastructure and market penetration of advanced technologies. In contrast, countries like Germany are already deploying data-driven models at scale in finance and agriculture, highlighting the need for India to close its infrastructure gap if it is to translate startup growth into systemic transformation.
Illustrated: Unknown via Pinterest
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Still, Agri-Tech startups in India represent a shift in the way agriculture is viewed. By using data, AI, IoT, these startups are breaking down long-standing inefficiencies in the agricultural industry. However, the agri-tech sector is still evolving. Many startups are in early stages, and their reach remains limited to specific regions or farmer groups. Challenges such as limited internet access, digital literacy, extremely high costs of technology, and a lack of trust in these startups persist. The profitability of these startups and their growth will depend on how effectively they can tailor their solutions, create strong local networks, provide support in local languages and collaborate with both government and private partners.
Over time, as these services become more accessible and merge into regular agricultural practices, agri-tech startups are likely to shift from being seen as optional add-ons to becoming essential tools for farming. Importantly, the impact of agri-tech extends beyond just increasing productivity and profitability. By enabling more sustainable use of resources, reducing input waste and encouraging environmentally friendly practices, these innovations contribute to the responsible management of the environment and rural livelihood improvement. Ultimately, agri-tech is evolving into a comprehensive solution that addresses economic, social and environmental challenges. Their role may not transform agriculture overnight, but they are contributing to gradual, measurable improvements that are necessary for a more resilient and responsive agri-sector.
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Keywords
Agri-tech startups, Smallholder farmers, Digital marketplaces, Precision farming, AI-powered advisory, IoT sensors, Climate-resilient agriculture, Post-harvest losses, Cold-chain logistics, Market linkages, Supply chain innovation, Sustainable farming, Greenhouse-in-a-box, Rural connectivity, Digital divide, Farmer skepticism, Government support, Microfinance, E-mandis, ESG compliance, Carbon credits, Organic farming, Solar-powered cold storage, Rural livelihoods, Inclusive growth, Institutional partnerships, Data-driven agriculture, Technology adoption barriers
References
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https://agrevolution.in/Agricultural-Finance-Credit-Insurance/
Bholane, K. (2023). Growth, problems and prospects for agri startups in India [PDF]. ResearchGate.
Deshmukh, S. (2023). Challenges and opportunities for agri-tech startups in developing economies [PDF]. ResearchGate.
Bora, Garima. (2020, May 28). Moment in the sun:Agritech startups are helping farmers thrive during covid-19. The Economic Times.
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https://www.investindia.gov.in/team-india-blogs/growth-agritech?utm_source
Kheyti. (n.d.). Farmer testimonials. https://www.kheyti.com/farmer-testimonials/
Maple Advisors. (2025). Agritech in India [PDF].
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Ministry of Agriculture & Farmers Welfare. (n.d.). Agri Infra Fund. https://agriinfra.dac.gov.in/
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NASSCOM. (2025, February 24). Indian tech sector seen growing 5.1% in FY25, NASSCOM says. Reuters. https://www.reuters.com/world/india/indian-tech-sector-seen-growing-51-fy25-nasscom-says-2025-02-24/
PIB. (2023, January 31). 65% of India's population depends on agriculture for livelihood. Press Information Bureau. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1894901#:~:text=The%20Survey%20notes%20that%2065,dependent%20on%20agriculture%20for%20livelihood.
PIB. (2023, March 27). Agri-tech startups are transforming the agriculture ecosystem in India. Press Information Bureau. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1896357
PIB. (2024, February 2). Union Budget 2024 highlights initiatives for agriculture and rural development. Press Information Bureau. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2051719&utm_source]l
Radhakrishnan, R. (2021, December 21). The agri-tech network effect is transforming India’s rural ecosystem, one smallholder farmer at a time. The Hindu BusinessLine. https://www.thehindubusinessline.com/opinion/columns/the-agri-tech-network-effect-is-transforming-indias-rural-ecosystem-one-smallholder-farmer-at-a-time/article37959692.ece
Startup India. (n.d.). How are agritech startups revolutionising farming practices in India? https://www.startupindia.gov.in/content/sih/en/bloglist/blogs/how-are-agritech-startups-revolutionising-farming-practices-in-india.html
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