Agritech startup Vegrow, specializing in business-to-business (B2B) sourcing of fruits and vegetables, has announced a successful Series A funding round, raising $13 million. The funding round was co-led by Lightspeed Venture Partners and Elevation Capital, with participation from existing investors Matrix Partners India, Ankur Capital, Better Capital, and Titan Capital. This latest investment follows Vegrow’s initial seed round of $2.5 million in June 2020.

Founding and Team

Established in April 2020 by Indian Institute of Technology (IIT) alumni Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu, and Kiran Naik, Vegrow boasts a team with diverse experience in the agriculture sector. Kumar and Jain bring expertise from their tenure at fast-moving consumer goods (FMCG) giant ITC’s agribusiness division, while Batchu and Naik have direct involvement in farming activities.

Operational Model and Technology Platform

Vegrow operates on a profit-sharing model with small-hold farmers, providing them with comprehensive assistance throughout the farming cycle leveraging technology. The company’s technology platform equips farmers with access to high-quality farm inputs and best practices, empowering them to optimize their agricultural operations. Additionally, Vegrow’s platform facilitates the efficient sale of farmers’ produce to appropriate buyers at fair market prices.

Impact and Expansion Plans

With a focus on enhancing farmer profitability, reducing supply chain wastage, and enhancing procurement efficiency for wholesalers, Vegrow aims to make significant strides in agricultural sustainability and economic empowerment. The latest funding injection will enable Vegrow to expand its operations to 100 new cities, bolster technological infrastructure, and introduce innovative product offerings.

Market Recognition and Growth Potential

In less than a year since its inception, Vegrow has emerged as one of the leading companies for pomegranates in India, underscoring its rapid growth and market penetration. Vaibhav Agrawal, partner at Lightspeed, commended Vegrow’s innovative approach, highlighting its ability to standardize quality, minimize inventory, and ensure positive unit margins. He emphasized the substantial market opportunity for tech-enabled marketplaces bridging the gap between farmers and buyers, particularly in addressing inefficiencies prevalent in the agricultural supply chain.

Agritech Landscape in India

Vegrow operates within India’s vibrant agritech sector, alongside prominent players such as Ninjakart, AgNext, Samunnati, Dehaat, Farmart, and WayCool. These companies collectively contribute to the modernization and transformation of India’s agricultural landscape, driving innovation and sustainability across the entire value chain.