Agriculture is one of the key economic sectors in the Latin American and Caribbean region, accounting for nearly 7% of regional GDP. As a fundamental axis of development today, technology also drives this industry through innovation throughout the agri-food chain; an industry known as “agrifoodtech” that represented a global market of USD $500 billion in 2022 and a projected growth of 8.1% per year, at an expected valuation of more than USD $730 billion in 2028.
In countries such as Colombia, where the agricultural sector is critical, agrifoodtech startups have seen remarkable growth in recent years, resulting in solutions with the potential to redefine the way food is produced, distributed and consumed.
With 163 agrifoodtech startups in the country, Colombia has highly skilled entrepreneurs whose projects will be the pillar for a more sustainable industry and even when facing challenges such as food insecurity and food waste.
Leading financing in the region
According to a recent report “The State of AgrifoodTech in Colombia 2024” published by Eatable Adventures, a global foodtech accelerator, the coffee-growing country consolidated its position as a leader in agrifoodtech investment in Latin America, with an estimated $40 million.
The report highlights a growing investment in startups in biotechnology, robotics, plant-based products and circular economy, as well as the qualities of the Colombian territory thanks to its unique biodiversity and entrepreneurial ecosystem.
Thanks to this, during 2024 Colombia surpassed other countries in attracting capital in this sector and excluding the case of Rappi, only Brazil would have attracted more investment in this area, consolidating itself as the second country in volume of investment in agrifoodtech in the region above economies such as Chile and Mexico.
This in contrast to a challenging outlook for the agrifoodtech sector in Latin America, which has faced an adjustment in recent years with a drop in investment from USD $3.6 billion in 2021 to USD $1.7 billion in 2022. Colombia remains a key player, positioning itself as the second best country in the region for the development of startups, above economies such as Chile and Mexico.
A benchmark ecosystem
Among the 163 Colombian agrifoodtech startups mentioned in the report are some notable names, including companies that are currently leading the industry not only in Colombia but also in other markets in the region.
Local startups have raised more than USD $2.8 billion in recent years, with platforms such as Rappi standing out, which has secured USD $2 billion in various investment rounds, representing 69.6% of the total investment.
In addition, other companies such as Merqueo, Frubana and Chiper have also stood out by attracting significant investments. This is evidence of a promising ecosystem while creating a solid precedent for the development of new initiatives.
Beyond these well-known cases from sectors such as logistics and delivery, projects such as B2B marketplaces throughout the supply chain, agri-food fintech, plant-based products and the organic production of products such as coffee have also attracted investment.
Add a comment
