Are agtech startups just digital agribusinesses? with Mark Kahn, Omnivore

The term ‘agtech’ now encompasses so many different types of businesses and innovations, that from an investment perspective, it can look overly complex. However perhaps the opposite is true?

Mark Kahn, Managing Partner of Ominvore, shares his ‘agtech-agribusinesss convergence theory’; where agtech startups eventually grow to look like a more conventional agribusiness company. He argues that if an agtech startup can’t see a pathway to either becoming an agribusiness or at least complementing one, then it’s likely to fail. The recent agtech startup failures in animal protein and vertical farming are an example of this.

So what does this argument mean for venture capital, which is all about high growth potential, disruption, and of course, high risk? Are VCs likely to invest in startups which are going to become ‘just another agribusiness’? And does that even matter?

For important context, Mark Kahn is based in India, which has a vastly different investment landscape compared with western countries. India has an incredibly large agriculture economy, worth about $US600 - 700 billion, with about 50% of the Indian workforce employed in agriculture.  If you compare that with Australia, only 2.5% of the national workforce is involved in agriculture. In the United States, it's around 10%.

Mark and Sarah discuss:

• Omnivore’s investment thesis and how it has evolved over time to focus on food security, agricultural prosperity, resource efficiency & rural resilience
• The unique agtech investment conditions in India and how it compares with markets in western countries such as the US, Canada, and Australia
• Whether we are starting to see a global uptick in agtech investment
• Why Mark believes there is an agtech-agribusiness convergence
• How the Indian agtech market can be overlooked by western investors, because they do not take the time to understand it

USEFUL LINKS:

• Value creation in Indian agriculture - McKinsey and Company, 2025
• DeHaat - the largest farmer platform in India and portfolio company of Omnivore.
• What caused the farmer protests in India and what does it mean for innovation in Ag?- Agtech… So What? episode, featuring Mark Kahn and other investors.

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The information in this post is not investment advice or a recommendation to invest. It is general information only and does not take into account your investment objectives, financial situation or needs. Before making an investment decision you should seek financial advice from a professional financial adviser. Whilst we believe the information is correct, we provide no warranty of accuracy, reliability or completeness.

Companies: Omnivore, DeHaat • Topics: venture-startups, agtech-ecosystem, business-model, ag-retail