Agri Tech Startups: Redefining Indian Agriculture

This presentation highlights the concept of startup and current scenario of agritech startups, government support/incubators/ accelerators related to agritech startup, bottlenecks for agritech startups in India and case studies highlighting innovative agritech solutions.

1. WELCOME JOBS STARTUP

2. Agritech startups Redefining Indian Agriculture SHAILESH PALB9167 Sr. M.Sc.

3. Introduction Second-largest agricultural land in the world The agriculture and allied sector employs 58% of our population Core sector for food security, nutritional security, and sustainable development There has been significant growth in Indian Agriculture with the grain production rising to 273.83 million tonnes in the year 2018 INDIA

4. Still, there are big challenges to be looked into to enrich the agricultural growth in India. Contribute only 18% of GDP Suicidal rates Traditional farming and issues Low agriculture productivity Food storage and wastage Price fluctuation Higher youth population >30% of youths are unemployed Employability of Indian graduates- 46%

5. Technology t hen

6. Technology today impacts every aspect of agricultural value chain… Processing & Storage Inputs / Knowledge Cultivation Distribution, Packaging & Handling Getting agriculture inputs Weather forecast Decision support solution Pest m anagement and n utritional m anagement Solution AI based sowing advisories Mobile controlled motor Hi tech irrigation systems Auto s teering t ractors Crop c ounting m achines Machine-learning algorithms to differentiate between weeds and crops Machine based Image technology to sort based on color, size, type etc. Wireless sensor to monitor crops connected with smartphone Measuring grains moisture content Web and mobile applications to sell farm products Price forecasting Online marketplace for grain Using data to track a supply chain

7. To know the concept of startup and current scenario of agritech startups To Understand the Bottlenecks for agritech startups in India Case studies highlighting innovative a gritech solutions Objective s To know the Government support /incubators / accelerators related to agritech startups

8. Startup The Department of Industrial Policy and Promotion (DIPP) defines a startup as an entity established Not prior to ten years with annual turnover not exceeding INR 25 crore in any preceding financial years Working towards innovation, development or improvement of products or processes or services , or if it is a scalable business model with a high potential of employment generation or wealth creation Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence .

9. Startup development stages

10. INDIA Around 8,900-9,300 of these are technology led startups 1,300 new tech startups were born in 2019 alone implying there are 2-3 startups born every day India has 3 rd largest startup ecosystem in the world India has about 50,000 startups in 2018

11. What is agri startup ? Start up in the field of Agriculture and its allied sector is called as Agri Startup

12. Agri startups A total of 366 agri-based startups have come up from 2013 to 2017 More than 50% of the startups in the last 5 years were started in 2015 and 2016 • 90%+ of all funding is focused on seed stage and early stage startups -NASSCOM, 2018

13. What is a gritech ? Agritech is defined as a n individual or segment of companies using technology in the field of agriculture leading to increase in productivity , efficiency and output. Agritech can be applied across the agricultural value chain and can be in the form of a product, a service or an application. With Prime Minister’s aim of doubling farmers income by 2022, agriculture technology could be a major driving force to achieve this aim.

14. Key Indian states focusing on Agritech Startups (2013-2017) State wise Funding ( 2013-2017) Startup scenario in India Agritech (2013 - 2017 ) K a r na t ak a 27% M a ha r a s h tra 22% NCT 9% Ha r y ana 9% Tamil Nadu 8% T e l an g ana 7% G u j a r a t 7% O t he rs 11% K a r n a t a k a 67% NCR 11 % Ma h a r a s h t r a 7% T e l a n g a na 7% Oth e r s 8% Karnataka accounts for two-third of total funding received by startups Karnataka and Maharashtra together account for almost 50% of the total Agritech startups opened -NASSCOM, 2018

15. ~ 450 a gritech startups in India, growing at 25% YoY Karnataka- Most innovative state for the second time (NITI Ayog ) ~ 155 agritech startups in Bengaluru. Bangalore has the third highest number of tech startups among the global cities (Indian startup hub)

16. Agritech India Industry Summary ~ 35 startups established in 2018 14 USD Mn 35 USD Mn 27 USD Mn Top 5 Funded Startups (2018) 9 USD Mn 8 USD Mn USD ~73mn funding received in 2018 >70% of funding at Seed stage >60% funding to market linkage sector USD ~248 mn funding received till June 2019 -NASSCOM, 2019

17. 1 Agritech is make in India for the world Every 9 th Agritech startup in the world is from India. 48% Agritech CEOs believe to have next Agritech unicorn in coming 3 years Global funds have directly invested in Agritech startups and sector focused funds. Multilaterals, such as, WEF and ADB have shown interest too. <5 global Agritech companies ventured in India, as compared to >25 Indian Agritech companies with global presence. S t ar t - ups Technology Unicorn Funding Growth Market exploration G lob al I nd i a 1 2 X 10 X 3103 450 < 5 ~ 25

18. Employment Rationalization Streamlining Supply Chain Stakeholder Empowerment The Digital Infrastructure Resource Maximization Processing and Exports Solutions that enable farm automation and aggregation will rationalize and gainfully redistribute the workforce. Mandis and FPOs need d igitization to bring more transparency. Farmers need more sales channels. Data and market connects can empower each stakeholder. Post harvest loss in India amounts to USD 13 billion. Demand driven cold chains, warehouse monitoring solutions and market linkage can significantly increase farmer incomes India ranks among top 5 countries in food processing. By 2024, the sector will employ 9 mn . Streamlining and tractability can improve farmer income and exports. 80% of India’s fresh water is used in agriculture. Similar figures for China are 65% and 70% globally. Reduction in usage of water and pesticides is a significant business opportunity. There is an acute lack of data and insights at ground and farmer level. Along with laying the digital work, solutions that build a layer of data will transform DBT schemes, insurance and loan disbursal. Untapped Agritech opportunit y

19. 1 Agritech Stakeholder Ecosystem Go v e r n m e n t C on sumer Agritech Start-ups Industry Farmer Processing Market Linkage Input Harvest

20. A gritech path ahead Market Linkage Digital Agriculture Better Access to Inputs Farming as a Service F i n a nc i n g Taking quality inputs to the farmers for better Productivity Making services affordable to small and marginal farmers Driving transparency, traceability and real time access to information Improving Supply Chain and taking farmers product directly to consumers Innovations taking roots in farmer financing

21. Better Access to Inputs Providing farmers better access to agricultural inputs at their doorsteps, it helps farmers to understand the best input product to increase the yield and productivity Business Attractiveness Landscape Quality Fertilizers: 70% agriculture growth depends on fertilizer quality Offer door to door delivery, makes farmers more interested in this business area Access to Quality seeds: Quality of seed accounts for 20%-25% of productivity

22. BigHaat How it Works Founded in Founders Headquarters Product Name Technology used Inputs / Knowledge 2015 Sachin Nandwana and Sateesh Nukal Bengaluru, Karnataka Seeds, Plant Protection chemicals, Plant Nutrients and Farm Machinery e-Commerce Platform, Web and Mobile Platform

23. Farming as a Service Farming as a Service offers affordable technology solutions to farmers for efficient farming by converting fixed cost to variable cost Business Attractiveness Landscape A cyclic business model, as farmers need equipments on regular basis 75% of farmers own less than 1 hectare of land hence making it difficult to own equipment's Buying agricultural equipments requires huge money making it difficult for farmer

24. How it Works Founded in Founders Headquarters Product Name Technology used Inputs / Knowledge 2015 Abhilash Tirupathy and Karthik Tamil Nadu and Karnataka Equipment on Rental Mobile based application The ola for farm equipment Gold Farm

25. Digital Agriculture Digital / Precision Agriculture based businesses offers innovative technology solutions for increasing crop productivity and farming process efficiency Business Attractiveness Landscape Leads to data generation which can be used for forecasting Cost saving by offering better prediction techniques Tech Intervention Drones, IoT Sensors, block chain, image sensing, analytics, machine learning Improve yield and increases productivity

26. Intello Labs How it Works Founded in Founders Headquarters Product Name Technology used Inputs / Knowledge 2016 Milan Sharma, Nishant Mishra , Devendra Chandani and Himani Bengaluru, Karnataka Intello Labs Grading App AI (Smartphone based )

27. Market Linkage: Improving Supply Chain Market Linkage provides a digital platform which connect farm output with the customer, it is one of the most easy way to take farmers products directly to the end customer Business Attractiveness Helps in reducing post harvest losses Landscape Huge customer traction Received highest funding Tech Intervention App based platform, image sensing for quality grading, IoT based storage monitoring Directly t aking farm output to consumer

28. WayCool How it Works Founded in Founders Headquarters Product Name Technology used Inputs / Knowledge 2015 Karthik Jayaraman & Sanjay Dasari Chennai Waycool foods and products B2B & B2B2C e-commerce platform, mobile platform

29. How it Works B2B2C model

30. Financing Farmers in India struggle to get finance but Agritech based financing start-ups helps such under served community of farmers to get loans quickly Business Attractiveness Landscape A solution for millions, hence scalable Farmers do not have good credit history which makes it difficult for them to raise funds through traditional channels Raising funds, the biggest challenge of Indian farmers

31. How it Works Founded in Founders Headquarters Product Name Technology used Inputs / Knowledge 2016 Alekh Sangera , Mehtab and Lokesh Uttar Pradesh Low cost digital loans Mobile Technologies farMart

32. Government Support / Incubators / Accelerators

33. Government announced a four point strategy to support agriculture in India… Reducing Cultivation Costs Ensuring Profitable Prices Processing Farm Wastes Creating non farm source of Income Apart from four point strategy GOI have specifically focused on support start-ups in this area through start-up India Through this initiative, the government aims to empower start-ups to grow through innovation and design. The Startup India initiative is based on the following three pillars: Simplification and handholding Funding support and incentives Industry-academia partnership and incubation

34. L aunched by the Indian government to set up a network of technology centres, incubation centres and also to promote start-ups for innovation and entrepreneurship in rural and agriculture-based industry The NSTEDB start-up scheme by Indian government will provide a limited , one-time,non-recurring financial assistance, up to a maximum of INR 25 Lakhs . There is no upper limit (or even lower limit) for a project grant. The budget is decided based on the requirement for its successful implementation . Provided support for project staff salaries, equipment, supplies and consumables, contingency expenditure, Pa t e n t f ili n g charges, outsourcing charges, etc. AIM will provide a grant-in-aid of INR 10 Cr to each Atal Incubation Centre for a maximum of five years to cover the capital and operational expenditure cost in running the centre. I ncentive schemes to support start-ups in agriculture and technology… The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following: >26% of the promoter’s equity and >INR 50 Lakhs. RKVY- RAFTAAR Rashtriya Krishi Vikas Yojana- Remunerative approaches for Agriculture and Allies sector rejuvenation

35. Pradhan Mantri MUDRA Yojana Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. Agriculture grand challenge A unique opportunity for Agri-tech startups with a commercially viable solution to solve for innovative challenges in the sector. Ministry of Agriculture, Govt. of India is looking for new concepts & innovations in 12 different areas. Twelve startups from each of the early stage, and ready-market stages (24 in total) would be selected to address the 12 themes (key problems) at the programme.

36. Karnataka is one of the few States that launched their Startup policy very early (in 2015) in the country

37. KEY HIG H LIGHTS OF THE ACTIVITIES startup.karnataka.gov.in

38. Key Agritech focused Incubators and Accelerators IIM Ahmedabad has launched India’s first Food & Agri-Business accelerator (CIIE) for start-ups in food and agri-business sector ICRISAT launched Innovation Hub (iHub) to support agricultural tech entrepreneurs, scientists and technology experts Indigram Labs Foundation (supporting high end start-ups) NAARM launched a-IDEA which is a Technology Business Incubator(TBI ). NAARM launched Agri Udaan, Food & Agribusiness Accelerator

39. Other Incubators and Accelerators focused on Agritech - IIM Calcutta Innovation Park SIDBI Innovation & Incubation Centre (SIIC) Tamil Nadu Agricultural University /Agricultural College and Research Institute (ACRI) NASSCOM Centre of Excellence for IoT UPAYA Social Ventures Kalinga Institute of Industrial Technology Business Incubator (KIIT-TBI) start-up Oasis (Jaipur Based Incubation Centre)

40. Other Incubators focused on a gri startups ICAR agri- business incubators PUSA krishi incubator ( ICAR-IARI ) CrAdLE (Centre for Advancing & Launching Enterprises ) EDII Ahmedabad N S R a g h avan C e n t re f or Ent r ep r eneur i al L e arni n g (NSRCEL) at IIM Bangalore. C- CAMP (Centre for Cellular and Molecular Platforms ) UAS Bangalore.

41. News Reports

42. Bottlenecks for Indian Agritech startups Low Landholding Size Return for the Investors Talent Retentio n Long Gestation Period Technology Affordability Skill Adaptability Acquisition of Agritech Companies Government Regulations and Policies

43. 19% More than 5 years 5 years 3 3% 3 years 43% 5 % More than 50% Agritech CEO’s do not expect an Indian Agritech unicorn within the next 5 years Fa r me r s’ Mindset 39% 29% 20% 12% Policy ~40% of Agritech founders feel that raising funds is the biggest challenge ….To an Indian Agritech Unicorn Key Challenges for Indian Agritech Firms 1 years NASSCOM Agritech CEO Survey 2019 Lack of Digital I nf r a s t r u c t u r e Funding

44. Recommendations Increased and timely support to early stage start-ups N eed for large companies to collaborate with start-ups N eed for Corporate and Government accelerators to help Agritech start-ups grow to the next level. v There is a need to create mobile trainings to educate the farmers There is a need for Government to help set up Agritech focused incubators and grants. Academia should encourage more entrepreneurs to focus on this growing sector and curriculum changes to be made in agricultural universities

45. Agritech Case Studies

46. Revolutionizing the Fresh Produce Supply Chain India's largest fresh produce supply chain company

47. Founded in Headquarters Objective Product Name Technology used 2015 Bengaluru, Karnataka To provide more income to farmers and less price to retailers by creating an efficient supply chain Ninjacart Mobile App B2B e-Commerce platform, Mobile platform Core Team Profile

48. How it works

49. Active regions Impact Funding Operationally present in 7 cities- Bengaluru, Delhi, Pune , A hmedabad, Chennai, Mumbai, Hyderabad 20,000 farmers, serves over 70,000 customers every month, movement of 1400 tonnes of perishables from farms to businesses, every day, in less than 12 hours . $34.6 Mn (INR 250 Cr) Company had a revenue of INR 27cr. in 2016-17, INR 54cr. in 2017-18 and INR 132cr. in 2018-19. The revenue grew at a rate of 388% between 2016 and 2019

50. Founded in Founders Headquarters Product Name Technology used Other services 2019 Havyas K. S. & Nithin Singh Bengaluru, Karnataka Precision farming as a Service NDVI sensors, Drones Hydroponics (home kit and outdoor setup) Hydroponics Training, Consultation Transforming the Future of Farming

51. We are solving the problem of excess use of fertilizer and pesticide in farming as well as poor management of other resources throughout the agricultural process, labor issues as well as non-standard method of farming activities.

52. Research Studies Entrepreneurial India: How startups redefine India’s economic growth Mehrotra, N et al., (2016)

53. Leaders of established companies identify the benefits of collaborating with startups major reasons for failure of startups as identified by Venture capitalists

54. Conclusion Over all, the ecosystem for agritech startup in the country is promising Government is also playing its part in boosting innovation and entrepreneurship Several incubators and accelerators are actively increasing their footprints Never the less several factors remain to be addressed towards further enabling agritech ecosystem and unleashing the full power of available technological innovations towards improving India's agriculture growth

55. THANK YOU