2023-12-13 05:31:00
Vegrow, a B2B fruit marketplace, has raised $46 million in primary and secondary funding. The new funding round is 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 utilized to drive Vegrow’s reach across India and fortify its global network, said the company.
Vegrow has established a presence in the fruits segment in India, a large, unorganized 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 it maximizes 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.”
Established in 2020 by IIT alumni Praneeth Kumar, Mrudhukar Batchu, Kiran Naik and Shobhit Jain, Vegrow has a founding team with extensive agricultural expertise and significant exposure to hyper-growth marketplaces gained from their previous roles at ITC, Urban Company & Chronus. Leveraging a robust data-tech stack, the company prioritizes matchmaking between demand and supply and actively pursues innovation throughout the value chain.
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.
“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.
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