Kerala’s startup ecosystem is becoming a key player in agrotech innovation. The key contributor to this success is the agrotech sector, boosted by initiatives like AGRI UDAAN, India’s first food and agribusiness accelerator. AGRI UDAAN, India’s first food and agrobusiness accelerator, was launched in 2015 by a-IDEA in collaboration with IIM Ahmedabad’s CIIE. Since then, AGRI UDAAN has supported agrotech startups and empowered entrepreneurs through mentorship, financial backing, and market access.
Kerala’s startup ecosystem has made remarkable strides, reaching a valuation of $1.7 billion by the end of 2023, a growth rate five times higher than the global average, according to the 2024 Global Startup Ecosystem Report (GSER). The state saw an astounding 254% compound annual growth between July 2021 and December 2023, compared to the global average of 46%.
In 2024, AGRI UDAAN 7.0 kicked off in Hyderabad, powered by NABARD and the State Bank of India (SBI). This roadshow is one of the many steps toward promoting agribusiness innovations across the country, emphasizing Kerala.
Kerala’s Agriculture and Food Sector
Kerala, a state heavily dependent on agriculture, faces several challenges, including fragmented land holdings, declining productivity, and labor shortages. Agrotech solutions can provide much-needed innovations for smart farming, supply chain optimization, and the processing sector. Through Agri-UDAAN, startups based in Kerala can access expertise and funding to develop solutions tailored to Kerala’s unique agro-climatic conditions.
Kerala’s rapid growth is rooted in a robust support ecosystem. Programs like the Kerala Startup Mission and collaborative efforts from research institutions like ICAR and the Kerala Agricultural University have provided essential mentoring and technological guidance. In turn, agrotech startups in Kerala are attracting early-stage funding, further driving the sector’s expansion.
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This momentum highlights Kerala’s ability to become a leading startup hub, leveraging its unique business environment to foster sustainable agricultural and technological solutions. As India’s food and agrobusiness innovations grow, AGRI UDAAN 7.0 Roadshow organized by a-IDEA (ICAR-NAARM) and ICAR-Central Tuber Crops Research Institute (ICAR-CTCRI) in Thiruvananthapuram is playing a pivotal role in amplifying Kerala’s efforts. This initiative connects entrepreneurs with resources, funding, and mentorship to further revolutionize Kerala’s food and agrotech landscape.
AGRI UDAAN Roadshow Highlights
Inaugurated by Dr. Ch. Srinivasa Rao, Director of ICAR-NAARM, the roadshow brought together experts from Kerala’s agrotech ecosystem, including scientists, entrepreneurs, and key stakeholders. Dr. Rao identified Kerala as a unique platform for agritech innovation due to its commercial farming systems and emphasized the need for tailored tech solutions to scale food and agrotech startups.
Dr. G. Byju, Director of ICAR-CTCRI, Thiruvananthapuram, highlighted the importance of integrating research, education, and business in nurturing entrepreneurship, especially for students. At the same time, Dr. Roy Stephen, Dean of the College of Agriculture, KAU, Vellayani, showcased the university’s efforts through student-led incubators and entrepreneurship clubs.
Prominent Outcomes of Agri-UDAAN:
- Startup Growth: Since its inception, the program has accelerated 63 startups, contributing significantly to the sector’s transformation.
- Funding Surge: These startups collectively secured ₹120 crore in funding, illustrating the financial viability and investor interest in agrotech.
- Mentorship and Business Support: Startups receive hands-on technical expertise from ICAR institutions, financial planning, market access, and networking with industry leaders.
- Innovative Focus Areas: The program emphasizes solutions in precision farming, supply chain optimization, organic agriculture, and digital agriculture, which are critical for addressing the diverse challenges in Indian farming.
- Pan-India Impact: Agri-UDAAN has created a nationwide impact, helping bridge the gap between agriculture and technology ensuring that innovations benefit farmers at the grassroots level.
Key Collaborations and Innovations
A notable feature of the roadshow was the unveiling of “ROOT sMART Shop,” an innovative store model developed by ICAR-CTCRI, offering products from ICAR institutes. The event also featured prominent agrotech startups such as Foo Foods India, XBOSON AI, and Uptown Urban Farms, who shared their success stories, further inspiring Kerala’s entrepreneurial community. The participation of 160 stakeholders, including investors, MSMEs, and state agencies, underscores the collective push towards a tech-enabled agricultural revolution in Kerala.
Scaling Impact Across States
AGRI UDAAN has, since its inception, provided critical support to over 60 startups across India, raising more than ₹120 crore in funding. As Kerala emerges as a hub for agrotech innovation, initiatives like AGRI UDAAN 7.0 are crucial in harnessing the state’s potential, encouraging sustainable agricultural practices, and creating opportunities for small-scale farmers and entrepreneurs.
Incubators like AGRI UDAAN have helped foster a collaborative ecosystem across multiple Indian states. In Kerala, for instance, AGRI UDAAN’s collaboration with ICAR-CTCRI has empowered local agrotech startups by providing access to technical mentoring and institutional support. Thanks to these incubators, states like Maharashtra, Karnataka, and Telangana have also witnessed increased agrotech startups.
Impact on Kerala’s Agrotech Ecosystem
- Promoting Sustainable Practices: By fostering startups with a focus on sustainability, AGRI UDAAN aligns well with Kerala’s efforts to adopt organic farming and reduce agriculture’s environmental footprint. Startups specializing in organic pesticides, bio-fertilizers, and water management systems have the opportunity to flourish under this initiative.
- Empowering Youth and Farmers: Kerala has a high literacy rate, and the youth in the state are increasingly showing interest in agro-entrepreneurship. AGRI UDAAN encourages this demographic by providing platforms for new ideas, supporting local entrepreneurs, and bridging the technology gap between traditional farming methods and new-age digital solutions.
- Strengthening Supply Chains: The program helps startups focus on areas like cold storage, logistics, and processing, which are critical for Kerala’s extensive horticulture and fishery industries. Innovative startups can modernize supply chains, reducing wastage and improving profitability for farmers.
- Technology Integration: AGRI UDAAN promotes technology integration in agriculture, which can lead to adopting AI, IoT, and drone technologies. In a state like Kerala, where smallholder farmers dominate, these tech solutions can lead to precision farming, improved yields, and better farm management.
Future Outlook
With strong backing from the Kerala Startup Mission, NABARD, and institutions like Kerala Agricultural University, the state is well-positioned to become a leader in agrotech innovation. Continued support from programs like AGRI UDAAN will accelerate the creation of sustainable, scalable agrotech solutions, benefitting both farmers and consumers and driving Kerala’s agricultural growth in the future.
While AGRI UDAAN has made significant strides in promoting agrobusiness innovations, it continues to work on ensuring greater inclusion of smallholder farmers and providing access to scalable technologies. Further, by nurturing regional hubs and creating state-specific incubation models, the program aims to expand its impact and drive the next phase of India’s agrotech revolution. AGRI UDAAN plays a vital role in promoting agrotech innovations across India, helping startups scale their operations, and contributing to sustainable agricultural practices in the country.
