Matrix Partners India: Digitizing Make In India Report uncovers trends in Manufacturing & Agriculture

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New Delhi, February 17th, 2023: Matrix Partners India today launched a State of the B2B Sector Report, “Digitizing Make In India” along with McKinsey & Company, as Knowledge Partners. As India catapults itself from a $3.5 trillion to $7 trillion economy over the next decade, a significant part of this growth will come on the back of our core sectors – Manufacturing and Agriculture. The report explores trends and challenges within the sector, with a focus on these two industries. It brings together views from over 150 stakeholders surveyed across start-ups, incumbents, policy makers and investors.

The B2B sector in India has seen significant tailwinds over the past few years. It has witnessed the digitization of SMBs & farmers and the adoption of a formal economy. Exports received a significant boost, due to the post-Covid geo-political shifts, with the world relying increasingly on India for manufactured products and food. Further, the Indian Government’s push for “Make in India”, coupled with incentives to boost manufacturing, has led to a once-in-a- generation opportunity.

The share of Manufacturing from India’s GDP is expected to grow around 5% over the next decade, adding $1 trillion to the economy. For this, 63% industry leaders believe that adoption of software will enable factories to scale. “A decade back Digitizing Make in India would have meant an oxymoron. Today, it means coming together of the old with the new, using technology to manufacture for the world and propel India towards a $7 trillion economy. I am excited to see the findings of the DMII report and look forward to the next decade of value creation in these sectors.” said Asish Mohapatra, Co-Founder and CEO, OfBusiness.

Agriculture contributed over $50 billion to Indian exports in FY22, the highest ever recorded till date. 64% of respondents believe that global demand supply imbalances will be a major driver of growth in exports. “India produces more than 10% of the Global seafood but forms less than 3% of the global trade. As highlighted in the DMII report, technology adoption can drive the next wave of competitiveness for agricultural exports from India. We at Captain fresh are seeing some early green shoots of this wave with more than 60% of our revenues linked to international markets.” said Utham Gowda, Founder of Captain Fresh.

In India, most leaders affirm that technology will enable farm to market fulfilment. “Basis the report 57% believe that technology can bring selection and transparency by grading agricultural produce and mapping demand-supply efficiently. At Vegrow, we have seen a significant unlock of value with this. We will continue to double down on our efforts to leverage technology to increase farm produce realisation and reduce wastages in the supply chain.” shared the Founders of Vegrow.

The report will act as a guide for B2B companies looking to solve real-world issues in these critical sectors. “Technology in food supply chains is no longer “nice to have” but a “need to have” if India wants to play a more competitive role in exports. At FarMart, we believe that digitization of agri-networks at first mile is the most effective way to build the fastest and a hyperconnected food distribution platform. Matrix Partners India is leading the charge on this narrative in the country and we are proud to have them as our early backers.” shared Alekh Sangera, CEO & Co-Founder, FarMart.

As India shifts gears to become a major global manufacturing hub, the role of the B2B startup ecosystem will be critical. We at Matrix Partners India are privileged to have a ring side view of this once in a lifetime development for the country. “We are bullish on the role that startups will play in solving some of these key challenges. In the last eight years, the B2B startup landscape has already received over $8.5 billion of funding, giving rise to six unicorns, and over 24 companies valued at over a $100 Million. We are excited with what the future holds for B2B businesses and look forward to partnering with more founders solving within the sector.” said Sudipto Sannigrahi, Principal, Matrix Partners India, the B2B & Climate Tech Lead for the fund.

The research and survey results point to numerous areas and insights to unlock growth. While these are opportunities, some of the challenges that would need to be addressed remain. 71% of industry leaders feel lack of financing for farmers is curtailing growth and 60% believe that volatility in input prices is the key pain point in manufacturing, amongst others. Key highlights of the Report:


  • 68% survey respondents expect Indian merchandise exports to grow at more than 10% p.a. over the next 5 years
  • Survey respondents feel Electronics & semiconductor(78%), Auto & Auto components (45%) and Pharma (42%) will be the top 3 sunshine sectors driving India’s growth
  • For early stage startups survey respondents believe there are clear opportunities in
  • Marketplace for sourcing raw materials (53%)
  • Software for factories (63%)
  • Vertically integrated global marketplaces (48%)
  • Government initiatives
  • 35% of respondents feel that “cross border trade agreements” is where the Government incentives have helped the most
  • 43% feel “simplifying custom clearances” is where they can get support


  • 64% of respondents believe global demand supply imbalances to be the major driver of export growth
  • For early stage startups survey respondents believe there are clear opportunities in
  • Fully integrated B2B/B2C for quality agri inputs (57%)
  • Hardware based precision farming (50%)
  • Tech to efficiently map demand and supply (57%)
  • Government initiatives
  • 43% of respondents feel that “supporting FPOs in creating infra for sorting and grading” is where the Government incentives have helped the most
  • 66% feel “promoting exports from India” is where they can get more support from Government

About Matrix Partners India:
Founded in 2006, Matrix India invests in companies targeting the Indian consumer and enterprise market at the seed, early and early growth stages. The firm has invested in several category-leading B2B marketplaces such as OfBusiness (B2B Commerce, fintech), Captain Fresh (B2B seafood marketplace), FarMart (SaaS-enabled B2B agri outputs), Vegrow (B2B fruits), LoadShare (tech-enabled B2B logistics network), Bijnis (B2B fashion & footwear, Saveo (B2B for pharmacies), Ximkart (B2B Raw Material imports), Sourcewiz (SaaS-enabled B2B exports), ZippMat (construction supply chain platform) amongst others.

Other marquee investments include Ola (mobility), Dailyhunt (mobile local language platform), Razorpay (payments), Five Star Business Finance (SME lending), Ola Electric (electric vehicles), Stanza Living (tech-enabled student housing platform), OneCard (mobile-first credit card), DealShare (social commerce platform), Country Delight (D2C dairy & fresh foods brand), Mswipe (mobile POS), GoKwik (e-commerce enablement platform), Zupee (leading skill-based gaming app) and Oxyzo (a tech-enabled smart financing solution provider) among others. Matrix India has advisory offices in Bangalore, Delhi and Mumbai. Further information is available at To know more about our investment philosophy & ideologies, check out the #MatrixMoments podcast series.