Agritech funding plunges over profitability concerns

INDUSTRY EXPERTS EXPECT REVIVAL IN 2026

- S SHANTHI

FUNDING FOR AGRITECH startups has fallen sharply this year, reversing the surge seen in the pandemic years.After touching record highs in 2021 and 2022, capital inflows have slowed by more than 50% in 2025, leading to shutdowns, distressed deals, and a rethink of business models.

According to Tracxn, agritech startups raised $182.19 million in 2025, compared with $390.52 million in 2024 and $498.28 million in 2023. The slowdown is stark when contrasted with the peak years, when the sector secured $1.17 billion in 2021 and $850.62 million in 2022.