Peer Reviewed Chapter
Chapter Name : Development and Validation of Sustainable Business Models for AgriTech Startups Using Lean Canvas and Design Thinking Methodologies

Author Name : Subhasheni A, Roshni Prasad

Copyright: @2025 | Pages: 34

DOI: 10.71443/9789349552104-01

Received: WU Accepted: WU Published: WU

Abstract

The intersection of user-centric design and strategic modeling is redefining the trajectory of AgriTech startups in developing resilient and scalable business models. This chapter presents a comprehensive framework that integrates the Lean Canvas methodology with Design Thinking principles to enhance the ideation, validation, and deployment of sustainable solutions within the agricultural sector. Lean Canvas enables structured hypothesis formulation across core business components, while Design Thinking facilitates empathetic engagement with farmers, cooperatives, and agri-input stakeholders to inform context-sensitive solution development. The synergy between these methodologies fosters continuous learning, agile experimentation, and iterative refinement of product-service offerings aligned to diverse agricultural ecosystems. Drawing on case studies from India, Sub-Saharan Africa, Latin America, and Southeast Asia, the chapter explores how this dual-framework adapts to local agroecological conditions through mechanisms such as empathy mapping, co-creation workshops, prototype testing, and cooperative-based distribution models. It emphasizes how integrating cultural, environmental, and behavioral insights into business modeling empowers startups to de-risk innovation, build inclusive partnerships, and scale effectively. The chapter concludes by outlining the relevance of embedding user feedback into strategic decision-making and the role of ecosystem-level support in driving sustainable, inclusive AgriTech innovation across global contexts.

Introduction

Agricultural innovation is at a critical inflection point, driven by urgent global needs such as food security, climate adaptation, rural economic development, and technological inclusivity [1]. In this context, AgriTech startups are emerging as key players capable of disrupting traditional agricultural practices through data-driven solutions, precision tools, and digital platforms [2]. However, the success and longevity of these ventures depend not only on technological novelty but also on the strategic viability and contextual alignment of their business models [3]. Many AgriTech startups struggle to scale due to a mismatch between solution design and real-world agricultural complexities, including fragmented markets, variable user behavior, and infrastructural gaps [4]. Addressing this gap requires robust, agile methodologies that center both business strategy and user needs [5].

Lean Canvas, a widely adopted tool for early-stage business modeling, provides a structured approach to articulating and refining hypotheses across nine critical components, including value proposition, customer segments, channels, and cost structure [6]. It allows startups to iterate business logic in a visual, flexible, and data-informed manner [7]. However, Lean Canvas alone is often insufficient when dealing with highly variable user environments such as smallholder farming systems [8]. To overcome this limitation, the integration of Design Thinking—an empathy-driven, iterative problem-solving methodology—adds depth to the understanding of user needs and behaviors [9]. Design Thinking enables startups to move beyond surface-level assumptions and uncover latent needs that often dictate adoption and long-term usage [10].