Funding Alert

Vegrow Raises Funding To Tap India’s $50 BN Fruits, Vegetables Segment

• ByStartupStory     |    July 20, 2021

Vegrow, a B2B agri-tech platform for fruits and vegetables, has raised $13 million in a series A investment round co-led by Lightspeed Venture Partners and Elevation Capital. The round also saw participation from existing investors Ankur Capital, Better Capital, Matrix partners India, and Titan Capital. Established in 2020, Vegrow has scaled rapidly among both farmers and B2B customers, resulting in nearly 20x top-line growth with a presence in over 30 cities. At the heart of this growth is their unique technology platform, which powers everything from farm discovery, produce quality profiling, market intelligence to smart matchmaking between farm-level inventory and customer requirements. The impact of this platform is clear in deep customer love and positive unit economics early on in the company’s journey.

The funding would help the firm to expand to 100 cities, invest in technology and launch new products. Vegrow was founded by IIT alumni Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu and Kiran Naik. “At Vegrow, we focus on selecting products as compared to building a large basket. Each of these products is a multi-billion dollars’ opportunity,” said the founders of Vegrow. “This enables us to go deep in the product value chain and unlock massive growth in this sector. In fact, we have become one of the largest companies for pomegranates in the country in less than a year,” they further added.

Vegrow is on a mission to unlock the power of India’s Agri value chain, initially focusing on the $50 billion fruits and high-value vegetables segment. The company addresses challenges around farmland under-utilization and supply fragmentation for farmers and delivers consistent quality along with fill rate to customers. Their unique farmer engagement model and tech-driven quality profiling are core to delivering higher returns to farmers, reducing supply-chain wastage and improving procurement for wholesalers.

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