According to a joint report by AgFunder and Omnivore, funding in Indian agrifoodtech startups declined 33 percent last year to USD 2.4 billion.

"Agrifoodtech startups in India raised a total of USD 2.4 billion in 2022, down 33 per cent from 2021. The number of deals also declined to 133 in 2022, compared to 230 deals in 2021," said India AgriFoodTech Investment Report 2023.

A total of USD 3.6 billion was raised during the calendar year 2021.

"The agrifoodtech startup ecosystem in India mirrored the global slump in venture capital funding in 2022. Funding dropped 33 per cent to USD 2.4 billion in 2022, from USD 3.6 billion in 2021. Euphoric startup valuations, alongside easy money, drove investments to a record-breaking high in 2021, followed by a swift correction," the report added.

Although the sector fell, it noted that it is an important emerging space in India for food security and agricultural transformation.

Early-stage investments decreased by 46 percent, while late-stage investments dropped by 34 percent. In growth-stage deals, capital flow decreased by 8%.

According to the report, "downstream startups raised USD 1.7 billion in 2022, a 37 per cent decrease from USD 2.6 billion in 2021. Swiggy's USD 700 million late-stage deal made up the bulk of investment in this category".