On Tuesday, Vegrow announced it had raised $13 million in a series A investment series led by Lightspeed Venture Partners and Elevation Capital. Vegrow builds a business-to-business (B2B) platform for fruit and vegetable sales.
Other investors participating in this round include Matrix Partners India, Ankur Capital, Better Capital and Titan Capital. At present, Vegrow is operational in more than 30 Indian cities and its founders are Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu and Kiran Naik.
The company was founded in 2020. Vegrow’s platform helps to support matching farm inventory with customer requirements.
Although B2B agriculture is an attractive market in India, it is also a complex one with fragmented supply chains including more than 120 million farmers growing across 30 Indian states.
While initially focusing only on the $50 billion high-value fruit and vegetable segment, it is expected to unlock the power of the value chain as it expands.
At Vegrow, selected products will be more focused on building than creating a large number of items on offer. Each of these products could potentially represent a multi-billion dollar market opportunity for Vegrow.
This allows the startup to dive deep into the value chain and drive growth in the field. With this funding round, the company plans to expand to around 100 cities, develop more novel technology and launch new products.
Agriculture is still largely limited in terms of technology and how big data is used to unlock value. Vegrow believes that any effort to digitize these values will have to focus on farmers and what matters to them.
Vegrow emphasizes its farm-centric approach, allowing the team to essentially reconfigure and strengthen these supply chains.
Companies that aim to use technology to increase efficiency, and build a market between farmers and buyers will likely have the largest opportunities in the future.
Vegrow’s growth and positive unit margins are the result of using a technology-driven approach to standardizing quality, minimizing inventory and retaining farmers – all of which seem to drive a winning strategy.