Jinesh Shah is the Managing Partner at Omnivore, a venture capital firm and a pioneer in agritech investing in India. A chartered accountant by profession, Shah was previously vice-president and CFO at Nexus Venture Partners, and has also worked with Datamatics, Patni Computers, and HCL Technologies. Part of the core working group of the World Economic Forum related to agriculture, Shah is also on the CII National Council on Agriculture, the chair of CII’s agtech task force, and the NITI Frontier Tech Hub Expert Council for Future of Agriculture. Shah spoke to indianexpress.com on the challenges agritech startups face, the tech choices relevant in the Indian context, and issues relating to the agritech innovation ecosystem in India. Edited excerpts: Venkatesh Kannaiah: Tell us about your focus at Omnivore and the journey so far. Jinesh Shah: At Omnivore, we invest in what we call Bharat, rural India. This includes investments in agriculture, rural innovation, and climate-sustainable products that support rural markets. Our journey started around a decade and a half ago as a corporate venture arm of Godrej. We were initially anchored by Godrej Agrovet for the first few years. Eventually, we decided to become independent and continued building Omnivore as a specialised venture fund. Over the past 13-14 years, we have been investing in companies across Bharat. Venkatesh Kannaiah: Why this focus on agritech? Jinesh Shah: It’s a matter of choice. Some people want to work with the government, others with the private sector, and some build businesses. We chose to focus on solving India’s biggest problems in agriculture. Both Mark Kahn, our co-founder, and I believe that if we can create value in this sector, it will positively impact millions of people. The agriculture sector is full of challenges and opportunities. Every part of the value chain can be improved. Democracies around the world – in North America, Europe, and Asia – have solved these problems. India will not be an exception. It’s also a personal choice for us. We could make money in other sectors, but this is where we believe we can make a difference while building sustainable companies. Venkatesh Kannaiah: Many investors are still wary of agritech. What do you see in the space that others don’t? Jinesh Shah: Investing is like marriage; where others see risk, we see opportunity. When no one was interested in agritech, we started investing in it. Today, companies like DeHaat, Arya.ag, Ecozen, Tractor Junction, and Aquaconnect are generating hundreds or even thousands of crores in revenue. They’re profitable, delivering strong returns for investors, and creating huge social impact for their stakeholders. Agriculture is not an easy sector. It demands patience and long-term vision. This is an industry that impacts food security and the livelihoods of small farmers, making it challenging. If you get it right, you can build very large businesses. Even with all the difficulties, there are many Indian agribusinesses like Jain Irrigation and Amul that have reached billion-dollar valuations. It takes time, but with the right quality of capital and a longer investment horizon, say seven or eight years instead of three or four, these companies can grow into large, sustainable businesses. Venkatesh Kannaiah: What are the main themes you focus on in agritech? Jinesh Shah: We broadly structure our investments around four themes. The first is emerging technologies, such as IoT devices, space technologies, robotics, and other advanced innovations. The second is digital value chains, which focus on digitising offline businesses to reach more farmers and stakeholders. The third is inclusive fintech, which is critical because agriculture needs significant capital. India produces about 200 million metric tonnes of dry commodities every six months, and financing this production and storage is essential. The fourth is sustainable food brands, where we invest in companies with complex, decentralised supply chains. By intervening at the primary level and connecting farmers and stakeholders, we help these companies build strong brands. Venkatesh Kannaiah: Can you share some examples of your portfolio companies and the problems they’re solving? Jinesh Shah: Certainly. DeHaat is present in over 16,000 villages, providing farm inputs, advice, financial support, and procurement services. They also export, produce, and build consumer-facing brands. Arya.ag is India’s largest grain bank, operating more than 1,200 warehouses and managing two to three percent of the country’s dry commodities while providing finance to farmers. Farmley is India’s largest manufacturer of dry fruits and nuts, and if you’re eating makhana or dates, there’s a good chance they’re from Farmley. Ecozen focuses on solar-powered solutions, including water pumps for hundreds of thousands of farmers and micro cold storages at the farm gate. They are also developing solar-powered air conditioners. Aquaconnect is India’s largest aquaculture and shrimp export platform, and Tractor Junction is the biggest marketplace for second-hand tractors and rural mobility solutions. There is Bioprime, an early-stage biotechnology company using microbes and plant-based pathways for crop protection and growth. Venkatesh Kannaiah: We see many agritech products abroad. How relevant are they to India? Jinesh Shah: Context is key. In countries like the United States or those in Europe, farms are often thousands of acres. Dashboards and satellite data make sense there. In India, most farmers have two or three acres of land. They walk their fields daily and can take photos with their phones. They don’t need expensive, complex dashboards. Our storage systems are also different. Western agriculture relies on massive silos. In India, storage often happens in 50-kilogram gunny bags. Solutions that work in the West don’t always translate here. Our productivity is around 55 percent of the global average. If we can raise that to 75 percent with small interventions, the impact would be enormous. Simple innovations like mobile soil testing labs could make a big difference, but India currently has only 4,000 labs for 14 crore farmers. Information must also be actionable. Farmers do not need data that does not help them make decisions. Drones are useful for pesticide spraying because they reduce health risks and address labour shortages, as younger generations are less interested in farm work. India produces a lot of food but processes very little. If we can create decentralised food processing facilities near farms, it would generate rural employment and reduce urban migration. Venkatesh Kannaiah: Do you consider yourself an impact investor? Jinesh Shah: We describe ourselves as a finance-first impact fund. For us, impact is a checklist: every investment must meet at least one pillar of our theory of change. Once that condition is met, we think and act like any other venture capital firm. We look at whether the company can scale, generate profits, and deliver successful exits. Venkatesh Kannaiah: What challenges do agritech startups face in India? Jinesh Shah: Many. Climate change is a big one. Financing is another. Then there is perception. People in cities often say that the problem with Indian agriculture is that our landholdings are too small. But if you look at China, their average landholding is half of ours, and yet they produce better yields. On the other hand, Pakistan’s landholdings are much larger, but their yields are worse. So that argument doesn’t really hold. Policy is also a big challenge. Export bans hurt farmers when prices rise. MSP support sometimes distorts crop choices. Then there are issues like falling water tables in some regions and soil salinity in others. These are the kinds of problems the sector constantly faces. Venkatesh Kannaiah: How has the agritech innovation ecosystem evolved in India? Jinesh Shah: It has improved significantly. Farmers are better off than they were 15-20 years ago. Infrastructure such as roads, railways, cold chains, and processing facilities has improved. As a result, scaling companies is easier. More entrepreneurs are entering the sector, and we’re seeing more incubators, accelerators, and investments from HNIs and family offices. Agritech now accounts for about 10-12 percent of the overall startup ecosystem, and it’s growing. However, we still lack strong biotech innovation. Institutions like ICAR have been working for years, and progress is being made at places like CCAMP, BIRAC, and IISc, but more policy support and funding are needed to drive meaningful breakthroughs. Venkatesh Kannaiah: What about the global agritech landscape? Interesting startups or themes? Jinesh Shah: Globally, agritech is evolving along several dimensions. One area is hardware innovation, particularly drones. These are increasingly being used for precision spraying, monitoring crop health, and automating farm operations. Space technology is another frontier. Satellite imaging, combined with AI and machine learning, is enabling more accurate weather forecasting, yield prediction, and resource management. Another theme is alternative proteins. Companies like Impossible Foods have pioneered plant-based meat substitutes, while others are exploring insect protein and fermentation-based food production. Automation is also reshaping the sector. Autonomous robots handle planting, weeding, harvesting, and even logistics in parts of North America and Europe. These technologies may take longer to reach India, but they are an important signal of where global agriculture is headed. The business models differ too. In the West, companies that develop breakthrough technologies are often acquired very early. Blue River, a precision agriculture startup, was acquired by John Deere. Bayer and Syngenta routinely buy promising startups to integrate new capabilities into their global operations. In India, acquisitions tend to happen later and focus on scale rather than technology. Large Indian corporations rarely acquire companies just for their tech. They want to see proven business models and significant market share. Venkatesh Kannaiah: Among your investments, which do you think will have a large social impact? Jinesh Shah: Impact evolves over time. Years ago, solving information asymmetry was critical, and companies like Arya.ag and DeHaat addressed it. Today, clean energy solutions like those offered by Ecozen are making a significant difference. Tomorrow, food processing and cold chains will likely be the biggest areas of impact. Events like Jio’s introduction of cheap data plans and the COVID-19 supply chain disruptions changed the landscape dramatically. Startups adapted quickly to these changes. Farmers have different needs — from inputs and financing to advisory services and documentation. Companies that solve most of these problems tend to become large and highly impactful. Venkatesh Kannaiah: What are your three big asks from the government? Jinesh Shah: One is to incentivise R&D in biotechnology. With climate change, we need more resilient seeds, better crop protection, and innovations to adapt to shifting monsoon patterns. The second is to decentralise food processing. If we can process food closer to the farm gate, it will create jobs in rural India, reduce carbon emissions from transport, and keep production costs lower. The third is to avoid export bans. When prices rise and exports are stopped, farmers lose significant income. Letting market forces work would help farmers get the right price for their produce.
