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2025 VC Investment Trends in AgrifoodTech: A Shift in Focus

In 2025, venture capital (VC) investments in consumer-facing agrifood sectors continued to center primarily around restaurant technology and food delivery services. Notably, there was a general decline in funding across the downstream sector, mirroring a broader downturn in agrifoodtech investment overall. While eGrocery remains the top-funded category, its lead over other sectors has diminished compared to previous years.

As we await the full investment figures for 2025, which will be unveiled in AgFunder’s annual Global AgriFoodTech Investment report, preliminary data sheds light on current fundraising trends and highlights key areas to monitor heading into 2026.

Current Highlights: Funding in In-Store Retail & Restaurant Tech

Funding in 2025: $743 million

Deal Count: 112

Importance: Funding for platforms that manage inventory and operations, such as Odeko and Nory, has continued as restaurants and cafes look to optimize costs. Interestingly, this marks the first time since 2016 that the entire in-store retail and restaurant tech sector has attracted less than $1 billion in funding, based on preliminary data.

Declining Interest: Online Restaurants & Meal Kits

Funding in 2025: $500 million

Deal Count: 45

Significance: A significant portion of this funding was funneled into a single round, with another large investment directed towards Butternut Box, a pet food delivery service. While food delivery apps are thriving globally, a few publicly traded companies like DoorDash and Delivery Hero dominate these markets.

Controversial Trends: The eGrocery Landscape

Funding in 2025: $925 million

Deal Count: 49

Why It Matters: eGrocery has emerged as the leading category for funding this year, a position it has held for several consecutive years. However, it’s important to note that total funding in this category plummeted by 63% year-over-year, while the deal count dipped by approximately 37%. Without the substantial influx of capital from Zepto, eGrocery would have fallen to the bottom tier of downstream categories.

Conclusion

The landscape of VC investments in consumer-facing agrifood sectors is undoubtedly evolving. With funding dynamics shifting, stakeholders will need to adapt to these changes and explore innovative solutions as they prepare for 2026. Stay tuned for the comprehensive insights from AgFunder’s Global AgriFoodTech Investment report to understand the full impact of these trends.