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B2B marketplace Vegrow raises $25M led by Prosus Ventures

Vegrow digitally works with farmers in 400 production clusters through its distinctive community advising method, assisting them in aligning with market expectations and obtaining better yield
B2B marketplace Vegrow raises $25M led by Prosus Ventures
Vegrow team: L to R - Kiran Naik, Mrudhukar Batchu, Shobhit Jain and Praneeth Kumar

B2B marketplace for fruits, Vegrow, has raised a funding of $25M Series B round led by Prosus Ventures. The round’s other notable investors were Matrix Partners India, Elevation Capital, Lightspeed India, and Ankur Capital. Sanjiv Rangrass, a well-known angel and industry veteran, continues to support the business.

With approximately 20,000 farmers on the supply side and 100 cities’ worth of wholesalers, semi-wholesalers, contemporary commerce, and general trade on the demand side, Vegrow concentrates on matching demand and supply for fruits. Vegrow digitally works with farmers in 400 production clusters through its distinctive community advising method, assisting them in aligning with market expectations and obtaining better yield, which leads to higher income. Every day, it processes around 200 tonnes of fruits. With 20 per cent gross margins that are the highest in the business, Vegrow has grown by 15x in the previous year. Vegrow’s extensive tech and data stack across the value chain have enabled the growth to be unlocked. It has the ability to evaluate demand across tier-1, tier-2, and tier-3 markets, estimate farmland produce, and harness farmer conversation.

Vegrow has already led the competition in the “pomegranate” category and is in the top 5 in a number of other fruit categories within two years of inception. The raised money will be used primarily to expand into new demand centres, gain control over supply to micro-pockets, and develop a top-tier talent pool in the fields of product development, engineering, and other support functions.

Shobhit Jain, co-founder Vegrow said, “Fruits are eaten in their natural state at the table, and because of this, consumers are quite particular about the quality. To guarantee and maintain the quality continuously, Vegrow provides value at the source and throughout the supply chain. We are thrilled that Prosus Ventures leads this round and that all of our internals will strengthen their relationship. Within the next five years, we want to generate a $5 billion result while growing sustainably.:

“We at Vegrow, are committed to generating value for both farmers and customers. Through appropriate matchmaking, ethical and transparent business procedures, and value chain advances, we ensure better realisation for the farmers,” Praneeth Kumar, co-founder Vegrow said.

Speaking on the funding, Ashutosh Sharma, Head of Investments, India at Prosus Ventures said, “Through our existing investments in the fresh produce and animal protein segments, we have been closely monitoring the agritech space. Due to their historical disorganisation, fragmentation, and inefficiency, the fruit-based industries are poised for a tech-driven disruption. By meeting the demand across all of India, Vegrow has propelled itself to the top thanks to its emphasis on scale and technology. We are thrilled to support them as they strive for the nation’s next stage of progress.”

“We’re excited to be increasing our investment in Vegrow as they grow and transform the Indian agritech environment. We’re honoured to have been Shobhit, Praneeth, Kiran, and Mrudhukar’s initial partners on this journey and we’d like to welcome Prosus to the partnership!” said, Sudipto Sannigrahi, Principal, Matrix India.

Read more: 5 Startups using technology to revolutionise agriculture in India 

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