Vegrow, a B2B fruits marketplace, has successfully raised $46 million in a primary and secondary funding round. The funding was led by GIC, and notable participation came from existing investor Prosus Ventures, along with Matrix Partners India, Elevation Capital, and Lightspeed.
According to a press release from the company, the newly acquired funds will be deployed to expand Vegrow’s presence throughout India and fortify its global network.
Earlier, the startup successfully secured $25 million in a Series B funding round led by Prosus in July 2022.
Vegrow collaborates with farmers to consolidate the supply and engage in organized partnerships for selling. The primary source of gross revenue for the Bengaluru-based company has been the sale of produce.
Established by Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu, and Kiran Naik, Vegrow links farmers spanning over 400 production pockets, assisting them in aligning with market expectations and achieving higher yields. The company processes over 200 tons of fruits daily and operates in the states of Karnataka and Telangana, as per its statements.
For GIC, Vegrow marks its first agri-tech and B2B investment in India. “Vegrow is the fastest agri-tech company to build a national presence, having done this within three years of its inception. Typically, it takes double the time to achieve this scale of operations,” said Vegrow Co-founder, Praneeth Kumar.
“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,” added Vegrow Co-founder, Mrudhukar Batchu.
According to the company, it enhances farmers’ income by precisely grading produce and aligning it with the most suitable demand channel. This establishes a virtuous cycle, drawing in more farmers with competitive pricing and attracting additional buyers who value consistency in both price and quality.
It competes with Dailyninja, Waycool, and Zomato’s HyperPure.
According to TheKredible’s estimates, Vegrow attained a valuation of approximately $170 million following the Series B round. The current valuation of the company remains undisclosed.
Over the past year, Vegrow has achieved a remarkable five-fold increase in revenue and operational profitability.
Although the company has not yet reported its FY23 earnings, its Gross Merchandise Value (GMV) skyrocketed to INR 100.83 crore in FY22, marking an 8.54X increase. However, losses also increased significantly, rising 6X to INR 29.7 crore in FY22 from INR 4.79 crore in FY21.
