Bangladesh’s firms that attracted a lot of users had to downsize because of lesser profit in agriculture, despite 66 percent of the country’s population being involved with agriculture.
FREMONT CA: Although two-thirds of the country’s population is associated with agriculture, the achievement of agritech startups in the country has been disheartening. Agriculture generates very little profit. Subsequently, the farmers refused to pay for the services they received, no matter how insignificant the amount was. As a result, financial sustainability for agritech firms is practically impossible. Despite agriculture being the third-largest contributor to Bangladesh’s GDP, startup enthusiasts and funding organizations say the growth and impact of agritech firms in the country have been unsatisfactory.
In Bangladesh, there are only a few agritech startups which includes iFarmer, Khamar-e, Integrated Precision Agriculture and Engineering Bangladesh (iPAGE), Krishi Shwapno, Bhalo Social Enterprises, and Fosholi, are performing well in terms of recognition and finance. Startups are considered to be innovative business concepts that radically alter traditional business models. In Bangladesh, the majority of existing agritech businesses are focused on digitizing the supply chain. Many of these farms promise to cut out the middlemen, resulting in a higher price for the producers.
These firms are substituting tech-savvy adolescents for established middlemen. While the convenience of online transactions sparked many supply chain businesses at first, the unreliability of e-commerce has stifled their growth. To survive, several of these startups have tried to adapt by switching from Business to Consumer to Business to Business platforms. Some companies are attempting to diversify their offerings to increase their chances of success. Some people are attempting to sell a variety of items and services under the same banner.
Many of the few agriculture startups have the problem of putting unnecessary effort. This is due to a misunderstanding of how startups work and how investors view such businesses. Instead of providing a solution to one core problem, doing it well, and scaling it quickly so that the company can raise another round to take on the next step of the solution, they try to do everything at once. Despite the numerous issues that agritech firms experience, the outlook for their future is ambiguous.
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