The complex business of farming needs an innovative uplift. Vegrow partners with farmers, using an organized and tech-led system to connect them with the right markets for their produce. This B2B agritech startup not only aggregates supply but also boosts land utilization for farmers. With a mission to create the world’s largest asset-light farmer, Vegrow recently secured $46 million in Series C funding led by Singapore’s sovereign wealth fund, GIC.
This round marks Singapore-based GIC’s first investment in the Indian agritech space. It also saw participation from Vegrow’s existing investors; like Prosus Ventures, Matrix Partners India, Elevation Capital, and Lightspeed Venture Partners. The secondary round provided a complete exit to many of the angel investors in the startup; while Ankur Capital, Titan Capital, and Better Capital partially exited the startup.
The fresh capital will be used to further Vegrow’s business in India while simultaneously growing its global presence. Vegrow uses tech to build a robust farmer network, offering tailored advice, in-depth crop knowledge, and farmgate services while linking farmers to diverse customer segments.
“Vegrow is the fastest agritech 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 co-founder Praneeth Kumar in the statement.
Over the last year, the startup has witnessed a five-fold increase in revenue and achieved operational profitability. In July 2022, it raised $25 million to expand its geographical presence. Today, Vegrow has networks in West Asia, South Africa, and Turkey.
“Through the extensive utilisation of data and technology, we provide valuable insights and optimise supply chain challenges, such as reducing perishable inventory wastage to only one-fourth of the industry average and consistently achieving industry-leading profit margins,” said co-founder Mrudhukar Batchu.
About Vegrow
Founded in 2020 by IIT alumni Praneeth Kumar, Mrudhukar Batchu, Kiran Naik, and Shobhit Jain; Vegrow offers a B2B tech platform for fruits and vegetables and connects wholesalers and traders with farmers.
Through leveraging their technology and data, the startup aims to streamline the highly disjointed network of the fruits and vegetable eco-system. Vegrow accurately grades the produce and effectively matches it to the most suitable demand channel, maximising income and efficiency.
“As the first backers of Vegrow, we have witnessed the company’s evolution from concept to category leadership in the $50 billion fruit segment… The company continues to thrive with healthy operating profits. We have consistently increased our investments in Vegrow in every funding round and are optimistic about the company scaling to greater heights,” said Sudipto Sannigrahi, Managing Director, Matrix Partners India.
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