Vegrow, a business-to-business (B2B) fruits marketplace, has raised $46 million in a Series C funding round led by led by Singapore's sovereign wealth fund, GIC, marking its first foray into India's agritech and B2B sectors.
The funding round also saw participation from existing investors, including Prosus Ventures, Matrix Partners India, Elevation Capital, and Lightspeed Venture Partners.
What is the purpose of fundraising?
The Bengaluru-based startup, founded in 2020 by IIT alumni Praneeth Kumar, Mrudhukar Batchu, Kiran Naik, and Shobhit Jain, plans to use this fresh capital to expand its footprint across India and strengthen its global network.
Previously, the agritech startup had raised $25 million in a Series B round led by Prosus Ventures in July 2022.
Tech-driven approach to agriculture
Vegrow leverages technology and data to streamline the fragmented fruit cultivation ecosystem. The startup offers a range of tech solutions such as crop advisory, grading, packaging, logistics, and sales to assist farmers in overcoming supply chain challenges.
According to Mrudhukar Batchu, co-founder of Vegrow, their approach has reduced perishable inventory wastage to only a quarter of the industry average and achieved industry-leading profit margins.
“At Vegrow, we distinguish ourselves from conventional operations, by creating an organizational ethos cantered on agility and experimentation. Through the extensive utilization of data and technology, we provide valuable insights and optimize supply chain challenges, such as reducing perishable inventory wastage to only one-fourth of industry average, and consistently achieving industry-leading profit margins," said Batchu.
Impact on farmers and the market
Vegrow claims to have increased its revenue fivefold over the past year while achieving operational profitability. The company's model maximizes farmers' income by accurately grading produce and efficiently matching it with the most suitable demand channel. This has created a virtuous cycle, attracting more farmers and buyers who seek consistency in both price and quality.
Shobhit Jain, co-founder of Vegrow, expressed the company's commitment to positively impacting both farmers and the planet. He said Vegrow aims to establish itself as a leader in every fruit category, ensuring transparency and higher income for farmers while also reducing carbon consumption through supply chain optimization.
The startup claims to process over 200 tons of fruits daily and operates in regions like Karnataka and Telangana, competing with other players like Dailyninja, Waycool, and Zomato’s HyperPure.
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