Vegrow, a B2B fruits marketplace, has raised $46 million in a primary and secondary funding round led by GIC with participation from existing investor Prosus Ventures, Matrix Partners India, Elevation Capital, and Lightspeed.
The fresh funds will be utilised to drive Vegrow’s reach across India and strengthen its global network, the company said in a press release.
Earlier, the startup had raised $25 million in a Prosus-led Series B round in July 2022
Vegrow partners with farmers to aggregate supply and sell to organised demand through partnerships. The sale of produce has been the major source of gross revenue for the Bengaluru-based company.
Founded by Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu and Kiran Naik, Vegrow connects farmers across more than 400 production pockets and helps them align with market expectations and get better yield. According to the company, it processes more than 200 tons of fruits daily and operates in Karnataka and Telangana.
As per the company, it maximises farmers’ income by accurately grading produce and 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.
Its competition includes Dailyninja, Waycool and Zomato’s HyperPure.
As per TheKredible’s estimates, Vegrow was valued at around $170 million after Series B round. The company’s current valuation couldn’t be ascertained.
Over the past year, Vegrow has experienced a remarkable five-fold increase in revenue and achieved operational profitability.
While the company is yet to file its FY23 earnings, the firm’s GMV surged 8.54X to Rs 100.83 crore in FY22. Its losses also mounted 6X to Rs 29.7 crore in FY22 from Rs 4.79 crore in FY21.