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Indian Express
2 days ago
- Business
- Indian Express
India's food supply chain is complex; agritech startups are trying to solve it: Hemendra Mathur, startup mentor
Hemendra Mathur is a partner at Bharat Innovation Fund, a venture capital fund focused on deep-tech investments in emerging sectors, including agriculture, clean technology, healthcare, and digital tech. He is also the co-founder of ThinkAg, a not-for-profit platform for accelerating the adoption of innovation in agriculture, and the chairman of FICCI's task force on agritech startups. Hemendra is an engineering graduate from the College of Technology and Engineering, Udaipur. Hemendra spoke to on his journey in the agritech sector, challenges faced by agritech startups in India, and on themes that have not worked for the agritech sector. Edited excerpts: Venkatesh Kannaiah: Tell us about your journey in India's agritech sector. Hemendra Mathur: It happened by chance. During 2008, I was working with a private equity fund investing in late-stage companies across the food value chain. Around 2010, I noticed young tech entrepreneurs entering the agriculture sector, which was a pleasant surprise because agriculture had conventionally been a talent-starved sector. I saw people quitting companies like Honeywell, Bain, or tech founders returning from the US. These were early-stage entrepreneurs who were reaching out for guidance, ecosystem connections, and fundraising support. It intrigued me because this sector is not for the faint-hearted. I started mentoring them, and since we were not doing startup investments at the fund, I helped them with whatever support I could provide. In 2016, I left the private equity fund. I had the option to start or join a new fund, but I decided the best use of my time was to be an ecosystem enabler. My prior experience with Rabobank gave me banking and consulting exposure. The last nine years have been the best part of my career, working with investors, startups, and senior government officials. The goal was to drive innovation at scale in a complex sector. I am on the Union Government's expert committee for Agri Stack. As part of an IFC project, I am working with the governments of Uttar Pradesh and Andhra Pradesh to develop Agri Stack use cases, like digitizing Kisan Credit Card crop loans, which are typically manual and time-consuming. We are also building the first open network for agriculture — Open Agri Net — where farmers are not tied to a single app but can access services like soil testing, financing, insurance, or equipment rental via a user-friendly bot. We have identified about 40 agritech network partners to connect farmers with relevant services, like weather forecasts, market prices, or buyers for their produce. This reduces the high cost of reaching and servicing farmers. I also mentor startups, and have mentored around 500 of them in the last eight or nine years. Venkatesh Kannaiah: Tell us about some highlights of India's agritech journey. Hemendra Mathur: The Indian food supply chain is the most complicated on earth; 150 million farmers on one end, 1.4 billion consumers on the other, and a narrow middle layer of 5-10 million traders, wholesalers, retailers, and 40 million kirana stores. From 2010 to 2017, agritech was in an experimental mode. The question was: would farmers adopt it? Would someone pay for these solutions? Would large corporations buy them? The investment in agritech during those first six or seven years was impact-led, with small cheques from impact investors. Then, in 2017, a new wave of entrepreneurs entered agriculture with much more enthusiasm. During the pandemic, the food supply chain was very active, retailers kept selling, and agritech and food tech startups worked 24/7 to keep it running. Digital adoption by farmers and consumers grew significantly. Farmers became more digitally literate, which changed agritech between 2019 and 2021. That was an inflection point. Investors woke up during this period as agriculture was growing — food production and consumption increased, and people were willing to pay a premium for quality food. Who would have thought that someone would pay a hundred rupees for one piece of cake? Consumer awareness about food traceability, safety, and nutrition picked up. Investors saw agritech as a growth sector and a defensible one — food is the last thing consumers compromise on. In 2020 and 2021, investments increased dramatically, and large investors started taking interest, supporting startups through multiple rounds. This brought agritech into the mainstream. Post-2022, we entered a different phase, where agritech demonstrated it could scale. Some startups achieved turnovers of $50 million to $100 million. However, a lot of money was sunk; stuck in debt, inventory, or overbuilding solutions. When the funding winter hit post-pandemic, agritech investors started asking tough questions: Will you ever make money? Scale is fine, but where's the bottom line? This was true for other sectors too, but agritech suffered more because profitability and farmers' ability to pay became question marks. It is also seen as riskier from a regulatory and policy perspective. In 2023, funding dropped, and the focus shifted from driving top-line growth (GMV) to bottom-line profitability. An investment lens alone does not work; policy is critical. In 2017, inspired by the success of UPI, I wrote about Agri Stack for a government-led data repository for agriculture that could later be opened to the private sector for building use cases. In 2021, the government adopted it, and now 60-70 million farmers are enrolled, with hopes to include 100-150 million, covering landowners and landless farmers. Agri Stack integrates farmer, crop, and farm registries, providing powerful data on farmer identity, farm location, size, and crops grown. This is invaluable for banks like the State Bank of India to offer loans or for buyers sourcing from farmers. We are digitising 160 million hectares of agricultural land, using satellite imagery to track crops. Venkatesh Kannaiah: What are the challenges faced by agritech startups in India? Hemendra Mathur: The biggest challenge in agritech is not funding, it is talent. Agriculture is not a career of choice for young professionals or students. I became an agricultural engineer because I had no other option. Agriculture is not taught at school or college level, while we need agronomists, plant scientists, veterinarians, behavioural scientists, meteorologists, hydrologists, and data scientists for AI/ML applications. As agriculture is a state subject, it is tough for startups to move between states due to differing regulations. Standardising policies and opening public datasets (70% of startup time is spent on data collection) and physical infrastructure, like warehousing, would help. Margins are low in commodity trading, so value addition requires accessible processing and storage facilities. Trends show that 80% of the investments have gone into farm-to-table models connecting farmers to customers (e.g., BigHaat, AgroStar), with a focus on demand aggregation, inventory management, quality control, and logistics. The remaining 20% investment has moved into areas like input quality, mechanisation, and farmer advisory solutions for pest detection, soil testing, or irrigation scheduling, using data from IoT, mobile phones, or satellite imagery. Less investment has gone into agri-biotech, deep tech (robotics, computer vision, AI), or fintech for farmer financing. Supply chain financing, warehousing, and cattle financing are untapped opportunities. Venkatesh Kannaiah: How do agritech themes and trends abroad differ from those in India? Hemendra Mathur: Globally, agritech in the US, Israel, or Europe focuses on farm-level interventions, like productivity, soil health, alternative proteins, and controlled environment agriculture (greenhouses, vertical farms) because farms are larger and supply chains are more streamlined. In India, complex supply chains make farm-to-table models dominant, but Indian solutions are portable to other smallholder-dominated regions. Farmer dashboards, common abroad, are less relevant for India's small 2-4 acre farms. Venkatesh Kannaiah: How does ThinkAg initiative work and what has it achieved? Hemendra Mathur: The ThinkAg initiative, started in 2018 as a not-for-profit, aims to help startups scale by testing business models early through partnerships with over 40 agri-corporates, research institutions, universities, accelerators, investors, and policymakers. We organise thematic events and publish an annual agritech investment report, a benchmark for investors tracking trends. It is an open-source ecosystem platform, collaborating with incubators like Social Alpha and AgHub to validate innovations and build partnerships. Venkatesh Kannaiah: Tell us about agritech themes that have not worked in an Indian context? Hemendra Mathur: There are pure trading models, where there is buying and selling without any value addition. Such models had scaled up but could not sustain due to low margins and were vulnerable to pricing shocks. Second were in the category of controlled environment agriculture, like hydroponics and greenhouses. These had high upfront costs and limited market linkage for premium products, making scaling slow. Such technologies are perhaps relevant in land-scarce regions like Singapore, but not in India. The third is one of alternative proteins, like meat or milk substitutes. India has a low per-capita meat consumption, and with traditional alternatives like plant-based protein diets (pulses) being popular, the alternative protein industry finds it tough to take off. As for the usage of drones in agriculture, they are in their early stages and promising. However, scaling it requires training rural youth in drone operations, as it is a skilled job varying by crop. Venkatesh Kannaiah: What are your three asks from the government? Hemendra Mathur: Firstly, we require dedicated agritech innovation cells at the central and state levels to streamline compliance, certification, and engagement with startups. Secondly, we need more catalytic capital for incubators, including grants, blended finance, or low-cost debt to support early-stage startups. Thirdly, we need open digital data stacks (like Agri Stack) for startups to build applications, with privacy protocols to enable farmer financing and market linkages.
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Business Standard
3 days ago
- Business
- Business Standard
Trade ties must not compromise policy sovereignty, says Jayant Chaudhary
Addressing a skills summit organised by FICCI here, the minister said the government is sensitive and allied to the strong support and solidarity extended by the Indian industry Press Trust of India New Delhi Union Minister Jayant Chaudhary on Friday said national interest is paramount and trade diplomacy cannot be at the cost of policy sovereignty, days after the US ratcheted up tariffs on Indian goods to 50 per cent. Addressing a skills summit organised by FICCI here, the minister said the government is sensitive and allied to the strong support and solidarity extended by the Indian industry. "Currently the global economy appears to be in a flux. Of course we need full support from the industry. This is the kind of conversation and you could almost call it a battle that the government of India is currently engaged in, but we have decided that trade diplomacy cannot be at the cost of policy sovereignty," the minister for Skill Development and Entrepreneurship said. Last week, US President Donald Trump had announced 25 per cent tariff on India that came into effect from August 7. Later, Trump also signed an executive order slapping an additional 25 per cent levy on India for New Delhi's purchases of Russian oil, bringing the total duty to 50 per cent. The tariff on India is among the highest imposed by the US on any country in the world. The additional 25 per cent duty will come into effect from August 27. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
New Indian Express
3 days ago
- Business
- New Indian Express
Philippines and India natural partners, says Marcos Jr at Bengaluru event
BENGALURU: President of the Philippines Ferdinand Romualdez Marcos Jr welcomed deeper collaboration with Indian industry across key sectors such as advanced electronics, pharmaceuticals, renewable energy, digital innovation, and infrastructure among others during the 'Philippines-India Business Forum 2025' held in Bengaluru on Thursday. The event, organised by Department of Trade and Industry, Philippines, in collaboration with FICCI, brought together top government officials, business leaders, and trade representatives from both nations and marked a significant step forward in strengthening bilateral commercial relations. President Marcos stated that with the Philippines undertaking major structural reforms to improve ease of doing business — such as the CREATE MORE Act, Green Lanes for priority investments, and workforce-aligned education — the country signals its readiness as a reliable partner for capital, technology, and talent. 'India and the Philippines are natural partners — bound by shared values, complementary strengths, and a common vision for inclusive and sustainable development. We are undertaking bold reforms to ensure the Philippines is a globally competitive, future-ready destination for investment. I invite Indian businesses to see the Philippines not just as a market, but as a strategic partner in shaping the industries of tomorrow — be it in semiconductors, clean energy, digital solutions, or healthcare. Together, we can build a resilient, innovative, and prosperous future for our peoples and the region,' said Marcos.
Time of India
4 days ago
- Business
- Time of India
India-US tariff tussle: 'Time to take ahead transformative reforms'; FICCI president calls for strengthening industrial economy
FICCI president Harsha Vardhan Agarwal on Thursday called for urgent and bold economic reforms to strengthen India's industrial base and services sector, In response to the US imposing an additional 25% import tariff on Indian goods. The latest move from Washington takes the total tariff burden on Indian imports to 50%, sparking concerns across domestic export-facing industries. The fresh duty, aimed at penalising India over its continued purchase of Russian oil, will take effect 21 days from the order. The first tranche of tariffs kicked in on August 7. Goods already in transit or those falling under specific exemptions will be spared. Describing the moment as an opportunity to double down on India's economic potential, Agarwal said in a post on FICCI's official X handle: "India has in the past faced multiple challenges and we have through our collective resolve turned adversity into opportunity. It is time that we once again focus all our energies into further strengthening our industrial economy and the services sectors. This is the time to take ahead transformative reforms both at the central and state level making it simpler to do business, attract more investments and fully leverage the potential our country offers. " He added that deeper reforms were key to fuelling growth and harnessing the country's entrepreneurial spirit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Learn More Undo "By pursuing factor market reforms, expanding the coverage of PLI scheme, doubling down on infrastructure investments and deepening the digital economy, we can leverage the entrepreneurial energy of our people and aim for even faster growth. Our collective resolve in making India a developed economy by 2047 should be the only guiding factor, for all actions we take, and our national interests should remain paramount. " Industry leaders have also voiced alarm over the additional tariffs, warning that it could severely impact competitiveness in the US market. Meanwhile, the government has called the US decision "unfair, unjustified and unreasonable", defending its sovereign right to purchase oil based on national interest. Stay informed with the latest business news, updates on bank holidays and public holidays .
Mint
5 days ago
- Business
- Mint
Philippines, India taking concrete steps towards launching formal trade talks: President Marcos
New Delhi, Aug 6 (PTI) India and the Philippines are taking concrete steps towards launching formal negotiations for a Preferential Trade Agreement, Philippines President Ferdinand Romualdez Marcos Jr said on Wednesday. Addressing the 'India-Philippines CEO Roundtable Meeting', organised by FICCI, here, President Marcos emphasised that the Philippines and India see the PTA as a strategic platform to harness their shared strengths and elevate our economic partnership. "We are working to find common ground to make the PTA come as quickly as possible. We have found ways to quicken the process with strong support from both government and business chambers, we are taking concrete steps towards launching formal negotiations," he said, according to a release issued by FICCI. Marcos also stated that the government has taken a slew of measures to attract more Indian investments by ensuring ease of doing business in the Philippines. "These reforms show our commitment to create a truly enabling environment for investors, including our valued partners in India. We are encouraged by the growing momentum in our bilateral trade, which reached USD 3.3 billion in 2024-2025 and there is a scope to achieve exponential growth," he added. He further said that the Philippines Department of Trade and Industry will work with Indian counterparts, to soon convene the meeting of Joint Working Group on trade and investment. "We are not only going to have meetings of joint working group on trade and investment, but we will also granulate down to industry-specific working groups," Marcos noted. Piyush Goyal, Minister of Commerce & Industry, said that India and the Philippines are celebrating 75 years of unwavering friendship, diplomatic relations, and there is huge potential before us in the years to come. The bilateral trade, he said, today is very low and starting from a low base our ambitions should be huge. "This is one partnership where we should only aim for exponential growth and not be satisfied with incremental growth at all. Let us work together and collaborate in areas like healthcare, pharmaceuticals, information technology, science, innovation and agriculture," he stressed. Goyal also stated that both nations are working on a Preferential Trade Agreement, and have finalised the terms of reference.
