Chennai: Thanks to advancements in technology and a surge in the number of startups in farming and related fields, impact investment firms, which fund companies with a cause, are now eyeing enterprises in the agriculture sector, which for long stayed off the investors’ radar. Venture capitalists and private equity firms are now enthusiastic about backing early-stage entrepreneurs who are providing innovative and integrated solutions in the agri sector.
“VC funding was very low in the sector few years back. But with more technology developing for the sector and more start-ups coming in agri space, we are seeing a spur in investment recently,” said Kushal Agrawal chief financial officer at Aspada Investments, a venture capital firm. According venture capital experts, agriculture is an evergreen area for investment with immense growth opportunities.
Recently, Aspada Investments made a commitment of Rs 20 crore each to Delhi-based EM3 AgriServices, an agricultural machines and services company, and Mumbai-based InI Farms that operates fresh fruit value chains.The company invested in 13 agri based enterprises in the past three years. Omnivore Partners, a venture fund, recently invested Rs 6.2 crore in Ecozen Solutions, a cold storage solution provider.
The company had made 10 investments in the space, including in Khedut Agro Engineering, FrontalRain Technologies, and Arohan Foods.“At the end of the day, investors are looking for return on investments. VCs are now attracted to the agri sector since it is very much fragmented and there is a lot of scope for integration and innovation. Also, it will offer good margin,” said Mr. Raman Singh Saluja, founder and chief executive officer, Gramco Infratech, an agri sector startup.
