Perspectives on Headwinds and Opportunities in Indian Agri Startups

Life of all the startups is characterized by what they achieve given the limited resources, money and time they have. At times these headwinds are demoralizing, due to non-productive use of the Startup’s resources. These have the broader and long-lasting negative impact on them, as opposed to established companies in this domain. Indian Agri startups constantly find themselves at this intersection of limited money, time and resources.

Access to Working Capital

Given the seasonal nature of agriculture with income being generated at the end of the season, Agri Startups and their clients may only see seasonal access to revenue. They need money to pay their employees and invest in their enterprises. The assumption that such companies can only raise capital from VCs needs a relook as not every startup is suitable for equity-based capital. Some of these companies may only be looking for working capital loans in the range of Rs. 50 Lakhs to Rs. 1 Crore to become sustainable. These capitals in the form of equity or loans from banks are inaccessible to Agri Startups preventing them from being viable.

This can be resolved by creating separate schemes for startups to take working capital loans against confirmed orders and a liberal grant regime tied to solving problems in the Agri sector, which will attract more startups to this domain. Companies and industry federations can also pool funds in their CSR initiatives to support such startups.rnRead more: https://www.insightssuccess.in/perspectives-headwinds-opportunities-indian-agri-startups/