While fintech startups might be under the RBI scanner, agri-fintech startups are filling in critical gaps in the supply chain, impacting farmers and attracting funding
The Reserve Bank of India’s (RBI) growing scrutiny towards fintech startups has led investors to cautiousness. But that is not the case for agri-fintechs—startups that operate at the intersection of agriculture and financial technology. They cumulatively attracted $66 million in funding in 2021 and have already got $52 million in 2022 YTD (year to date), according to data provider Venture Intelligence. One reason for this is the size and enormous potential of the market. India has 126 million smallholder farmers and despite the PSL (priority sector lending), credit to them is still scarce and hard to obtain. Agri-fintech startups are plugging in the gaps to help reach these farmers and lift their fortunes. Here’s a sampling of five such startups: