Costly miscalculation for Agtech investors?

Agtech investors are putting fund money in loss-making companies, and their model is fundamentally wrong,


New Delhi (India): An open discussion with VK Packwell’s CEO, Vikesh Gupta, reveals the tectonic upheaval now taking place in the agtech sector. Vikesh, a pioneer in the industry, has voiced alarm about the present investing climate, in which businesses increasingly turn to unsustainable strategies for survival.

“Agtech investors are putting fund money in loss-making companies, and their model is fundamentally wrong,” said Vikesh. When better options are available for less money elsewhere, they charge outrageous amounts for low-quality goods. In light of this, one would wonder, “Is this business model sustainable in the long run?”

Vikesh continued by pointing out the firms’ disproportionate dependence on PR, advertising, and marketing to increase revenue. He stressed the reality that hundreds of vendors, including several multinational conglomerates, all produce the identical items.

Although Vikesh did not name any specific sector leaders, it is clear that he views their strategy of relying on excessive advertising and low-quality items as incorrect. He alluded to the growing number of Indian and international investors who have reached out to VK Packwell because of the company’s potential to shake up established industries.

The Indian agtech market is clearly in a state of flux. VK Packwell is a shining example of innovation in an industry where many long-standing companies are trying to change with the times. In a groundbreaking announcement, Vikesh described their breakthrough HDPE multilayer flexible foldable woven fabric pipes are a lot cheaper than the standard goods that are already available. ISI Mark ensures that they will last and are simple to use.

VK Packwell has also created other types of Micro-Irrigation systems, such as those that use drip irrigation, sprinklers, or even rainwater. VK’s Micro Irrigation Systems stand out because of a unique, cutting-edge technology that allows them to work in tandem with woven fabric pipes.

Gupta said, cryptically, “India is changing,” signalling a major upheaval in the agtech sector. The groundwork has been laid for a revolutionary period in agricultural technology, one in which efficiency and accessibility rule supreme. Companies like VK Packwell are demonstrating, as the industry readjusts, that it is not about having the most flashy advertising campaign but about providing actual value to farmers and the sector as a whole.

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Tags: Agtech, VK Packwell, Vikesh Gupta, Agtech investors