Omnivore backs agri-tech startups to transform farming

Omnivore, an agritech venture capital firm, is set to increase its investments in FY26, targeting startups that create specialized hardware solutions for key agricultural challenges. The firm plans to invest in 4-6 new startups, with funding amounts between US$2 million and US$ 7 million. It sees strong potential in startups advancing precision farming, water management, and sustainable agricultural practices. India’s agritech sector has seen rapid growth, driven by digital adoption, supply chain shifts, rising consumer demand, and increased funding. 

Omnivore, an agri-tech venture capital firm, plans to increase investments in FY26, focusing on start-ups developing specialized hardware for agricultural challenges. The firm plans to make 4-6 new investments, with cheque sizes ranging from US$ 2 million to US$ 7 million. It is particularly optimistic about start-ups driving innovation in precision farming, water management, and sustainable agricultural practices. In FY25, the firm made nine investments from its third fund, the Omnivore Agritech & Climate Sustainability Fund. 

Mark Kahn, managing partner at Omnivore stated, “Advanced domestic manufacturing capabilities are accelerating the development of scalable solutions, positioning these innovations as strategic interventions for food security and climate resilience. Within our portfolio, Ecozen and Niqo Robotics are developing climate-smart technologies that enhance agricultural efficiency and productivity.” 

Having raised US$ 150 million for the fund’s first close in June 2023, Omnivore aims to support 25-30 Seed and Series A agritech startups and MSMEs. The fund, launched in April 2022, has secured backing from investors including KfW, Self Reliant India (SRI) Fund, FMO, SIFEM, International Finance Corporation (IFC) with support from the Bill & Melinda Gates Foundation, Inclusive Agritech Facility, Louis Dreyfus Company Ventures, and the Dutch Good Growth Fund (DGGF).

Additionally, Omnivore recognizes India’s manufacturing resurgence as a significant investment opportunity. Beyond its traditional strength in low-cost production, India’s manufacturing sector is being driven by strategic government policies, robust technological infrastructure, and a thriving startup ecosystem. With emerging technologies and a highly skilled workforce, the country is rapidly positioning itself as a global manufacturing hub.

(Omnivore, an India-based impact venture capital firm, funds entrepreneurs driving innovation in agriculture and food systems. A pioneer in agri-tech investing, Omnivore has backed over 40 start-ups since 2011 and currently manages Rs. 24 billion (around US$ 300 million) across three funds. As a “financial-first” impact investor, the firm aims at positively transforming the lives of smallholder farmers and rural communities. Through its portfolio companies, Omnivore fosters agricultural prosperity, enhancing profitability, resilience, sustainability, and climate adaptability in India’s farming sector.)

Agri-tech in India

AgriTech (agricultural technology), refers to the application of technology in farming and agriculture to enhance productivity and efficiency across various value chains. It encompasses advanced innovations that are driving the ‘fourth agricultural revolution,‘ much like the Industry 4.0 movement, shaping the future of the sector.

In India, AgriTech has witnessed rapid growth, with startups leveraging digital solutions such as precision farming, quality management, production optimization, supply chain integration, market linkages, and digital traceability, among others. Over the past three years, the Agri-Tech industry has experienced an impressive tenfold expansion, driven by four key factors: 

• increasing digital penetration across India, 
• supply chain disruptions caused by COVID-19,
• rising consumer demand for high-quality agricultural produce, and 
• growing investment from private equity and venture capital firms.

The Indian agritech sector is thriving, with start-ups revolutionizing farming through–

• organic methods, 
• equipment rentals, 
• integrated supply chains, and
• cloud-based analytics. 

Furthermore, the advanced technologies including big data, IoT, AI, drones, and machine learning are enhancing decision-making, precision farming, and insurance evaluations. 

As of December 31, 2023, nearly 2,800 Agri-Tech start-ups have been recognized by Start-up India. These start-ups are regarded as a “ray of hope,” fostering innovation and transforming traditional agricultural practices in India. From 2014 to 2024, Agri-Tech start-ups in India secured 116 seed-stage funding deals, raising approximately US$146 million. In comparison, funding deals at the growth and late stages were significantly fewer. Over this period, Indian Agri-Tech start-ups raised a total of around US$2.4 billion.

Recognizing the potential of Agri-Tech, the Indian government actively supports start-ups through financial and technical assistance under the “Innovation and Agri-Entrepreneurship Development” program, part of the Rashtriya Krishi Vikas Yojana (RKVY). Since 2018, this initiative has played a crucial role in fostering the startup ecosystem, with 5 Knowledge Partners and 24 RKVY Agribusiness Incubators mentoring and incubating Agri-Tech start-ups. (Between 2019-20 and 2023-24, Rs. 111.57 crores were distributed to 1,554 Agri-Tech start-ups.)

India’s agri-tech sector is poised for significant growth, with nearly 10,000 startups expected by 2030. This rapid expansion is expected to generate millions of jobs in rural areas while enhancing agricultural productivity and sustainability. With sustained government support and increasing private investment, the adoption of agri-tech solutions is set to accelerate further.