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HomePosts Tagged "Vegrow"
Agribusiness, Finance, Funding, Horticulture, India, Start ups

The funds will be utilised to drive Vegrow’s reach across India and fortify its global network.

Vegrow, a B2B fruit marketplace, has raised $46 million in primary and secondary funding. The new funding round was led by GIC, Singapore’s sovereign wealth fund. The round saw participation from existing investor Prosus Ventures, and continued support from Matrix Partners India, Elevation Capital, and Lightspeed. The funds will be utilised to drive Vegrow’s reach across India and fortify its global network, mentioned the company.

Prosus Ventures believes Vegrow operates in an attractive sector and is creating a superior demand and supply experience. The founding team has demonstrated strong execution capabilities and a focused approach to profitability. Buoyed by the future growth outlook, Prosus Ventures has increased its ownership in the company. It looks forward to the next phase of growth.

Vegrow has established a presence in the fruits segment in India, a large, unorganised market poised for tech-led disruption due to its fragmented and localised operational structure. It is characterized by the involvement of multiple intermediaries facilitating transactions. Vegrow’s advantage is the depth of its multi-channel demand stack and its use of technology for demand-supply matchmaking.

The company said that it maximises farmers’ income by accurately grading produce and efficiently matching it with the most suitable demand channel. This creates a virtuous cycle, attracting more farmers through competitive pricing as well as more buyers who seek consistency in both price and quality.

Praneeth Kumar, Co-founder, Vegrow said, “The company’s strategy marks a significant advancement in the efficiency and reliability of the fruit ecosystem. Over the past year, Vegrow has experienced a remarkable fivefold increase in revenue and achieved operational profitability.”

“At Vegrow, we distinguish ourselves from conventional operations, by creating an organizational ethos centered 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 Vegrow Co-founder, Mrudhukar Batchu.

The funds will be utilised to drive

E-commerce, Finance, Start ups

The funds will primarily be used for expansion into more demand centres, establishing dominance across supply micro-pockets and hiring

B2B marketplace for fruits Vegrow has received $25 million in a Series B round led by Prosus Ventures. Existing investors including Matrix Partners India, Elevation Capital, Lightspeed, Ankur Capital and angel investor Sanjiv Rangrass also participated in the round.

The new round has come after a gap of 12 months for the Bengaluru-based start-up which picked up $13 million in Series A in July last year. The funds will primarily be used for expansion into more demand centers, establishing dominance across supply micro-pockets and hirings, said VeGrow in a release.

Vegrow focuses on matchmaking across demand and supply for fruits, aggregating multiple channels such as wholesalers, semi-wholesalers, modern trade and general trade in 100 cities on the demand side and more than 20,000 farmers on the supply side.

 Vegrow claims that it engages with farmers across more 400 production pockets and helps them align with market expectations and get better yield. According to the company, it processes more than 200 tons of fruits daily. Vegrow majorly operates in Karnataka and competes with Dailyninja, Waycool and Zomato’s HyperPure.

Vegrow also said that it has grown 15-fold in the last 12 months with industry leading gross margins of 20 per cent. The company, however, did not disclose its revenue numbers for FY22. During FY21, Vegrow remained a pre-revenue stage company with Rs 11.8 crore in revenue and a loss of Rs 4.8 crore.

Prosus, the lead investor of this round, has invested in very few companies in the agriculture space. Last year, it had led a $30 million round in Patna and Gurugram-based startup DeHaat. The firm also backed the startup in its $115 million round in October.

The funds will primarily be used for