India has solidified its position as the world’s third-largest startup ecosystem, boasting over
1.25 lakh startups and 110 unicorns. But what does this mean for the Indian poultry and livestock industry? To explore this, Think Grain Think Feed connected with representative from NITI Aayog and several Indian startups to delve into their journeys, the impact they’ve made, and their expectations from the government. Below are key insights from these conversations.
Livestock or poultry-related startups
India is one of the largest and most diversified food producers worldwide, with agriculture providing livelihoods for over 20% of the population. By 2030, agriculture is expected to contribute around USD 600 billion to India’s GDP, a 50% increase from its 2020 contribution.
Currently, over 2,500 registered startups are operating in agriculture and allied sectors. With government initiatives and farmers’ increasing openness to technology, Ag-Techs are set to engage with India’s farming community.
Agriculture technology has flourished due to growing attention from venture capital (VC) firms like Accel and Sequoia Capital, which have invested in companies such as Samunnati, Ninjacart, DeHaat, and Bijak. In the past four years, agtechs in India have raised around USD 1.6 billion. VC firms invested more than USD 1.2 billion in 2022 alone, marking a 50% increase from 2021 and tripling the investment made in 2020. The average deal size is also rising, showing that startups are maturing, even amid an economic slowdown.
India leads globally in milk production, ranks second in goat meat, third in egg production, and eighth in meat production. Over 300 animal husbandry and dairying startups are operating, each offering unique approaches to enhance productivity and profitability—ranging from supply chain optimization to precision farming. The Livestock Tech sector in India comprises approximately 530 companies, including 70+ funded ones that have collectively raised USD 683 million in venture capital and private equity.
Notable startups like MoooFarm, TenderCuts, Stellapps, Fresh to Home, and Zappfresh provide services ranging from farm management software to smart infrastructure and tech-enabled services for livestock producers.
Many startups are making significant contributions to the farming community, offering affordable solutions for farmers. For example, Krishigati Private Limited, which won the National Startup Award in 2023 in the ‘Innovators for Agriculture and Animal Husbandry’ category, is known for providing innovative precision farming solutions. Katidhan helps reduce wildlife-related losses for farmers, while Intello Labs provides AI-based quality monitoring and grading solutions for the agriculture and food industries.
Startup20 concept
Startup20 is a new G20 initiative aimed at harmonizing the global startup ecosystem. It focuses on sectors like education, finance, energy, sustainability, and agriculture. The group advocates for policy integration, promotes diversity, supports women-led startups, and encourages cross-border collaborations. It aims to raise the annual investment in global startups to USD 1 trillion by 2030, with South Africa currently holding the presidency.
India’s government supports agri-startups through financial and technical assistance. The Department of Agriculture & Farmers’ Welfare runs the “Innovation and Agri-Entrepreneurship Development” program, which has supported over 1,700 agri-startups since its inception. Additionally, the Department of Animal Husbandry and Dairying launched the ‘Animal Husbandry Startup Grand Challenge’ to identify and support innovative solutions in the sector, offering cash prizes, mentorship, and incubation.
The Animal Husbandry Infrastructure Development Fund (AHIDF) and the revised National Livestock Mission (NLM) aim to boost employment, entrepreneurship, and productivity in animal husbandry and allied sectors.
Government Focus on Startups
The Indian government is focusing on precision farming, online marketplaces, data-driven farming solutions, supply chain technology, and machine-based quality management. Quality management, leveraging machine-based image analytics and Blockchain technology, is seeing growth. These innovations promise sustainable growth, strengthening rural economies and benefiting the nation.
Chavanprash for Pashudhan
Product Conceptualization
The idea behind starting this bioscience venture was to leverage my knowledge and convert it into products that could positively impact people’s lives. Microbiology-based applications are often expensive or require large-scale operations—like beverage fermentations or the manufacturing of antibiotics and other pharmaceutical products. Given the lack of funds and experience to start such large-scale projects, I began looking for an area that could be explored with a limited scope of knowledge and investment. Among various possibilities, animal husbandry caught my attention.
The potential, need, and scope of this sector drew me to the livestock industry. Animal nutrition, which accounts for 70% of a farmer’s input costs, is a key challenge. Milk and meat products often have quality standards far below those of foreign counterparts, while medicinal and antibiotic expenses are high. Yet, India remains the world’s largest milk producer. This led me to realize that if we could develop a microbe-based solution to reduce nutrition costs, improve digestion, enhance milk and meat production, and boost animal health, we could bring significant benefits to farmers. The idea of creating a 360-degree solution that would require minimal input with a maximized “One Health” output excited us immensely.
It took us four years to develop a range of six products, using data gathered from various trials, customer behavior patterns, and insights into animal breeds and their nutritional needs across India. Our products provide medicinal benefits while addressing nutritional gaps, and we call them Nutraceuticals or Chavanprash for Pashudhan.
Market Response
We began commercial operations two years ago and have seen steady growth in Maharashtra and Uttar Pradesh, working with over 9,000 dairy farmers. Initially, farmers were hesitant and skeptical due to past experiences with new products that negatively affected milk quality and animal health. Gaining their trust was a gradual process. However, through word of mouth and the real-time, sustainable impact we’ve delivered, we’ve seen increasing trust, with both marginal and progressive farmers adopting our solutions. As a result, many of our customers now pay us in advance or on time, which is a significant achievement.
Startup Funding
Our startup has received funding from several sources. We are supported by the State Bank of India, Atal Incubation Centre – RMP, which provided debt for scaling up and establishing a manufacturing plant. Additionally, we have received assistance from RK VY RAFTAAR through the Agribusiness Incubator at IIT BHU, a grant from the Ministry of Farmers Welfare, an IAIN grant from Social Alpha, and prize money from SIDBI in association with the Women Entrepreneurship Platform.
Policy Supports and Expectations
The current policy structure and government schemes are highly encouraging and accessible, particularly for women entrepreneurs. However, there are two areas where improvements could be made.
Firstly, it would be helpful if the fund disbursement process from the government were more transparent, with clearer timelines for when funds will be released. This would allow startups to plan their cash flows without disruption.
Secondly, I suggest introducing an “Innovation Certification” or badge for products that are more innovative than existing alternatives. This would make it easier for us to market our products and build credibility. Often, startups develop innovative products that don’t fit into current regulatory frameworks and require amendments. Until those amendments are made, an “Innovation” badge could serve as a tool to market these products.
Additionally, I would urge the government and multinational corporations to establish stricter norms for milk and meat procurement at both the farmer and brand levels. This would ensure that high-quality producers receive fair compensation while encouraging lower-quality producers to improve their standards.
Challenges in Initial Years
In the early stages, one of the biggest challenges was the pandemic. We started in March
2020, and shortly after, the world was thrown into chaos. With travel restrictions and limited mobility, we shifted our focus to research for the next two years, developing our product range while the world gradually returned to normal.
Testing our products on farms and ensuring their effectiveness was a major challenge, as it required direct consumption by animals. Once we overcame this, we faced other hurdles such as rural outreach, last-mile distribution, securing funds, and gaining farmer adoption.
In the dairy and animal husbandry industry, there’s a new challenge every three months that needs to be addressed. It’s a dynamic sector, and staying adaptable is key to long-term success.
Future Vision
Occamy has clear expansion goals for the next five years, which include:
Product Development: Launching five new nutraceutical products, tested and commercialized.
Geographical Expansion: Expanding our market presence to 10 districts across India and entering five international markets.
Farmer Beneficiaries: Reaching approximately 2 lakh regular users, helping to improve their livelihoods.
Animal Beneficiaries: Supporting the health and immunity of 5 lakh livestock, including cows, buffaloes, goats, and bulls.
Along the way, we aim to create rural employment, improve farmers’ livelihoods, reduce methane emissions from livestock, and contribute to food security and antibiotic resistance mitigation. These are ambitious goals, but we are committed to making a meaningful impact in the lives of farmers and animals alike.
Sustainable Protein Source for Animal Nutrition
Present Infrastructure
A state-of-the-art factory with a capacity of 100 tonnes per month and a cutting-edge biotech research lab staffed by a dedicated team of 20 scientists.
Product Conceptualization
Loopworm was born out of the need to create a sustainable and scalable alternative protein source for animal nutrition. The idea took shape during our college years when we recognized the growing demand for high-quality, sustainable feed ingredients, especially in the aqua and pet food industries. Leveraging biotechnology, we developed a proprietary insect-based platform using Silkworms to manufacture products serving multiple industries.
Market Response
Market acceptance has been encouraging. We have seen strong traction in the pet food, aquaculture, and poultry feed industries. Our products—LoopGrub and LoopMeal Pro—have been well-received for their high protein content, omega-3 fats, and hypoallergenic properties. We recently shipped our first international order to Europe, marking a significant milestone in global expansion.
Startup Funding
Loopworm has secured venture capital funding, making it the only Indian startup in this sector with VC backing. Our investors include Omnivore, WaterBridge Ventures, and Titan Capital, among others. This funding has helped us scale operations, expand our R&D capabilities, and commercialize our products.
Policy Supports and Expectations
The startup ecosystem in India has improved significantly over the years, with initiatives like Startup India and incentives for agri-tech and biotech businesses. However, challenges remain, particularly in regulatory approvals for novel products. We expect the government to improve the quantum of grant funds to help startups not just in the idea stage but also in pilot-scale optimization. Though insect-based products in most cases are safer than other animal products, they are yet to be standardized under particular HSN codes, where aquatic or other animal-based products are included. Though India might not be a large consumer of insect-derived products for food, cosmetics, and nutraceutical applications, India has the capabilities to produce large quantities of it for global markets. Streamlining product registrations would enable Indian insect protein startups to tap into the export space.
Challenges in Initial Years
Our biggest challenges included:
- Regulatory Hurdles: Navigating the approval process for insect-derived ingredients in international markets.
- Market Education: Overcoming skepticism about insect-based proteins and proving their efficacy in animal nutrition.
- Scaling Production: Developing cost-effective large-scale production while maintaining quality and consistency.
Going forward, our expansion plans include:
- Geographical Expansion: Strengthening our presence in Europe, Japan, and Southeast Asia.
- Product Diversification: Scaling our recombinant protein platform, LoopBac, which has the potential to revolutionize protein production for diagnostics, bio-cosmetics, and cell culture.
- Industry Collaboration: Partnering with shrimp feed manufacturers, pet food companies, and biotech firms to develop specialized formulations.
Future Vision
By 2030, we envision Loopworm as a global leader in sustainable protein production, disrupting the recombinant protein markets and being a leader in sustainable insect-derived products. Our goal is to:
- Establish LoopBac as a dominant recombinant protein platform, offering cost-effective solutions for complex recombinant protein demand.
- Become a leading supplier of insect-derived ingredients in animal nutrition, crop biologicals, and human health and wellness products.
Our focus will remain on innovation, sustainability, and scaling our impact globally.
Hydroponic Fodder – A Tactical Intervention
Product Conceptualization
The journey started with inspiration from a farmer who was trying to solve her own fodder shortage, drawing inspiration from our R&D center, where we were growing cotton using vertical farming methods for a retailer. Back then, I was growing up and loved feeding our cattle in the backyard, where I could relate to the problem instantly. Research showed the shortage of green fodder in India as high as 300 MMT, a problem persistent for over four decades. I could see the market potential where 80 million dairy farmers were incurring losses of up to 25% of their income.
Then, I started with the thesis that hydroponic fodder could be a tactical intervention to prevent income loss for small and marginal dairy farmers in arid areas, especially during the summer. We conceptualized many designs and validated each with the National Institute of Animal Nutrition & Physiology, Bangalore, along with a few farmers, to standardize the overall specs for the hydroponic system.
Over the years, we have realized that the supply of seeds for hydroponic cultivation is critical. I am glad to share we have a patent-pending solution called KANAJ to store dry commodities for over 18 months and wet biomass for over 12 months without any fungus, mold, or aflatoxin.
Startup Funding
It is bootstrapped with the founder’s capital of INR 25 lakhs and grant support from Villgro, the Government of Karnataka, Swissre, and RAFTAAR.
Policy Supports and Expectations
We appreciate the grant fund support at the concept level from the Government of Karnataka as well as from the Government of India. However, the crucial stage for any new product or service is to go through a process of market fitment/commercialization. There is very limited support or funding available to cross this chasm.
Challenges in Initial Years
The first challenge was reaching out to farmers broadly. Thankfully, we worked with some NGOs to reach the last mile and test our solutions in extreme climate regions like the Thar Desert or Meghalaya. Thankfully, the technology delivered accurate results and improved dairy income by up to 3 liters. As seed supply is crucial in this process, we are slowly expanding while building a seed supplier network.
Future Vision
We will continue to focus on delivering increased access and availability of feedstock through both higher production and storage. We are open to collaborating and partnering with relevant stakeholders in the value chain in the due course.
