Anindita Nayak
Bhubaneswar, 28 Sep 2025
In 2024, global agrifoodtech funding reached $16 billion, experiencing only a 4% decline compared to the previous year after two years of significant drops from the sector’s peak of $51 billion in 2021. This slowdown in decline indicates that the industry has entered a “new normal” for venture capital, showing resilience and early signs of recovery. The United States maintained its lead, securing $6.6 billion (+14% YoY) and almost half of global funding. India emerged as the fastest-growing market, raising $2.5 billion (+208–215% YoY) and ranking second globally, returning to pre-pandemic levels. Strong performances also came from the Netherlands (+118%), Finland (+403%), and Japan (+76%).
Regionally, North America was the only developed continent to see growth, while South Asia’s surge was mostly driven by India. Developing markets overall raised $3.7 billion (+63% YoY), making up 23% of global totals and restoring activity to pre-Covid levels. India was the dominant player, contributing nearly two-thirds of this amount. Zepto, an Indian eGrocery startup, stood out by raising almost $1.4 billion, which accounted for one-third of all developing market funding. Even without Zepto, India showed strong growth with $1.2 billion (+49% YoY), particularly in upstream sectors such as ag marketplaces and fintech. Other developing regions, including Latin America (led by Brazil and Mexico) and Africa (led by Kenya), experienced moderate increases. Vietnam’s Techcoop led upstream activity by raising $75 million over four rounds. In 2024, funding patterns indicated a clear shift towards larger, later-stage deals.
Globally, deal volume dropped by 24%, and in developing markets, it fell by 8.4%. However, capital inflows increased as late-stage rounds surged by 133% and growth-stage funding rose by 54%. Early-stage investment only increased by 1%, even though seed and Series A comprised most of the deals. This reflects consolidation in the sector, with more capital going to fewer established, revenue-generating players as investors focus on profitability.
In terms of sectors, upstream innovation attracted 51% of global capital across 1,265 deals but saw funding decline by 22% YoY, with bioenergy, biomaterials, and novel farming systems all down over 50%. In contrast, downstream technologies increased their share, with funding up 20% despite a 37% drop in deal count, due to larger average investment sizes. In developing markets, upstream categories defied the global trend, rising 22% YoY to $1.2 billion, or 31% of total funding. Globally, eGrocery regained its status as the top-funded sector, contributing 12% of total investment (+17% YoY). Cloud retail infrastructure was the fastest-growing segment (+45% YoY), followed by midstream technologies (+41%), while novel farming systems faced the largest decline (–53%).
India’s significance in 2024 was clear. The country was responsible for South Asia’s 202% funding surge, raising $2.5 billion across 218 deals. While Zepto dominated late-stage eGrocery and delivery funding, India also made substantial gains in upstream and fintech sectors, highlighting the strength of its ecosystem. This blend of large-scale consumer tech success and upstream resilience firmly positioned India as the leading growth engine for agrifoodtech in the Global South.
Overall, 2024 represented a turning point for agrifoodtech investment, marking a year of stabilization globally and a resurgence in developing markets. The sector is consolidating, with late-stage rounds and market leaders capturing the majority of capital. Early-stage founders face greater challenges in attracting investment. Nonetheless, the recovery of downstream categories, the strong performance of developing markets, and India’s ascent as a global powerhouse point to a cautiously optimistic outlook for agrifoodtech innovation in the coming years.
