India’s Agritech at inflection point: funding revival, profitable models, and consolidation
Once viewed as one of the most promising startup segments, India’s agritech sector gained strong momentum during 2021 and 2022 supported by active investor interest and government initiatives. This momentum, however, slowed significantly as funding activity declined in the following years, leaving major players such as Ninjacart, DeHaat and WayCool stalled in their growth journey even as the sector witnessed shutdowns and layoffs. Despite these challenges, agritech is seeing a revival of selective activity with recent large funding rounds led by by Arya.ag’s $80 million and AgroStar’s $30 million raise along with consolidation moves such as the merger of Unnati and Gramophone reflecting efforts to achieve scale and long term sustainability.
Interestingly, farm-to-fork players such as Otipy, Fraazo, and Deep Rooted, which operated in the B2B2C fresh fruits and vegetables segment and had raised significant funding, were unable to build sustainable business models. Despite early traction, these startups struggled to scale efficiently and failed to secure follow-on capital, eventually leading to their closure. It seemed the business as usual approach just didn’t have the legs to carry startups.
Where startups like Nutrifresh Farms have succeeded, it has been done on the back of genuine innovation, a focus and persistence with one core model, and in the case of Nutrifresh, demand-aligned production rather than consumer-led scale expansion. The company leverages hydroponic technology to grow pesticide-free fruits and vegetables in climate-controlled farms and operates largely on a B2B model. The model has allowed it to carve out a distinct position in a segment with lesser competition, and where a price premium is still possible. It supplies fresh produce to major clients such as Zepto, Swiggy Instamart, Blinkit, McDonald’s, and Spar, while also offering customized salad subscriptions. Notably, Nutrifresh has scaled its business to around Rs 150 crore in revenue with minimal external funding and has remained profitable since inception.
Following this peak in 2022, investor interest in agritech began to soften. In 2023, funding declined sharply by 78% to $178 million. The sector saw a modest rebound in 2024, with funding increasing by nearly 30%, but this recovery proved short-lived as investments fell again by around 30% in 2025 to $160 million.
Towards the end of 2025 and early 2026, however, signs of renewed momentum have begun to emerge. AgroStar raised $30 million, while Arya.ag secured a large $80 million round earlier this year. B2B food supply startup FarMart is also in talks to raise up to $40 million in a new round. Additionally, following the merger of Unnati and Gramophone, the combined entity is expected to raise a sizable funding round. These developments indicate improving investor confidence, positioning 2026 as a potential comeback year for the agritech sector.
Top funded Agritech startups
A few heavily funded startups continue to dominate the agritech landscape, led by Walmart-backed Ninjacart, which has raised over $370 million to date. Its most recent funding round took place in May 2022, when it secured $9 million at a valuation of $815 million. WayCool and DeHaat follow closely, having raised $307 million and $270 million respectively, with both companies reportedly valued at around $700 million. More recently funded players such as Arya.ag and AgroStar have also emerged among the top-funded agritech startups, having raised $254 million and $150 million respectively.