The incubation unit of India’s ICRISAT agri research institute is planning to launch a Rs 100 cr (US$15 million) fund for agri-startups within the year, according to Live Mint.

 

ICRISAT’s agriculture incubator, the Agribusiness Innovation Platform (AIP), was launched in 2004, incubating 71 startups to date, and committing $13.2 million to ventures focusing on agriculture, agri-data, food and nutrition, renewable energy, and farming organizations. Each year, the incubation unit typically earmarked between three and four crore (between US$440,000 and $585,000) to be split as seed funding between 10 startups, but it found it challenging to convince venture capitalists or banks to add additional, more substantial funding to back the agricultural operations. In response, ICRISAT decided to establish its own scaled-up fund with the expectation that worthy startups are less likely to die down if there is not a significant lack of money.

 

“When we first set up the platform, we were very ambitious and had hopes that there would be at least 20-25 start-ups incubating each year. But the ecosystem for the agri-business space is yet in formative stages. While the success rates have been 10% now, with funding avenues in place this should go up to 30-40%,” Kiran Sharma, CEO of Agribusiness Innovation Platform (AIP), told Live Mint.

 

TechCircle reports that AIP is currently holding talks with high-net-worth investors, and the venture and social investment arms of multiple companies regarding being investors in the fund, which will not only provide capital, but will offer technological consultations, training, access to infrastructure and facilities, and business facilitation.