India top-funded developing market for agrifood tech investment in 2024: Report

New Delhi, April 17 (IANS) India was the top-funded developing market in 2024, posting spectacular growth of 215 per cent in dollar funding and 27 per cent in deal count, according to a report.

The report by Omnivore, in collaboration with AgFunder, a global investment platform, showed that investment increased in five of the top 10 countries in 2024.

India topped with investments in the agrifood tech startups jumping over 3-fold to $2.5 billion last year. It was followed by Singapore $172m (+3 per cent), Mexico $97m (+250 per cent), Vietnam $87m (+350 per cent), and Chile $58m (+33 per cent), noted the report.

The rise in investments is driven by funds raised by quick commerce company Zepto.

Zepto was 2024's best-funded agrifoodtech company globally, raising nearly $1.4 billion across three late-stage deals, the report said.

"Top rounds for India in 2024 highlight continued investment into eGrocery and restaurant-related startups, which are well-suited to the country given its dense urban settings and high population. Midstream Technologies has also been a high-performing category for India agrifood tech investment," the report said.

According to a statement, agrifood tech investment in developing markets reached $3.7 billion in 2024, up 63 per cent from 2023 and accounting for 23 per cent of global investment.

"Deal activity declined 8.4 per cent YoY to 523 as the industry closed fewer and larger deals," it said.

“India is one of the world’s most established agtech ecosystems. Startups in the country raised 49 per cent more YoY with Zepto excluded. Ag marketplaces and midstream tech startups raised nearly $500 million alone,” the report added.

The report showed that funding in developing markets’ agrifood tech sector grew substantially between 2023 and 2024 (63 per cent) versus a 4 per cent decline in global agrifoodtech.

Upstream investment increased some 22 per cent to $1.2 billion, with agri marketplaces and fintech leading the charge. Downstream investment grew 91 per cent to $2.1 billion, representing 57 per cent of all developing markets funding, the report said.

--IANS

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