Urban gardening firm Ugaoo raises Rs 47 Cr in Series A

Houseplants and urban gardening brand Ugaoo has raised Rs 47 crore ($5.6 million) in its Series A funding round led by V3 Ventures, with participation from existing investors DSG Consumer Partners and RPG Ventures.

The company previously raised $2 million in its pre-Series A round in November 2021.

According to a press release, the proceeds will be used to expand Ugaoo’s regional presence across the top 10 Indian cities and establish 80 retail stores by FY30. The company also plans to broaden its product offerings by partnering with international plant suppliers and introducing a diverse selection of exotic plants and premium plant care products to the Indian market.

Founded in 2015 by Siddhant Bhalinge, Ugaoo operates a 25-acre farm in Talegaon, on the outskirts of Pune, where greenhouses and horticulture specialists are used to cultivate all of its plants in-house.

Ugaoo serves customers pan-India through both online and offline channels, including its website, app, and nine stores across Pune, Mumbai, and Bengaluru. Its products are also available on digital marketplaces like Amazon and Flipkart, as well as on quick commerce platforms such as Zepto, Swiggy, and Blinkit.

The brand’s target demographic is women aged 25-60 years, along with gardening and home décor enthusiasts in metropolitan and tier II and tier III cities.

Ugaoo claims to have fulfilled over 1 million orders in the past three years and currently boasts an annual recurring revenue (ARR) of over Rs 100 crore. The company reported Rs 63 crore in revenue for FY24, marking a 100% growth from Rs 24 crore in FY23. It also claims to have been operationally profitable throughout the year.

Ugaoo competes with other brands in the space, including Inflection Point Ventures-backed Urvann, Kyari, Nurserylive, GreenMyLife, and Grow Garden, among others.