[Funding alert] Vegrow Secures $46 Mn in Series C Funding Round Led by GIC

Leading B2B fruit marketplace in India, Vegrow, revealed it has raised US$46 million in primary and secondary finance. GIC, the sovereign wealth fund of Singapore, is leading the fresh funding round. Prosus Ventures, an existing investor, is also heavily involved, and Matrix Partners India, Elevation Capital, and Lightspeed are continuing to support the venture.

Vegrow’s exclusive financial advisor on this deal was Avendus Capital. The money will be used to expand Vegrow’s presence throughout India and strengthen its international network.

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“Vegrow is the fastest agri-tech company to build a national presence, having done this within three years of its inception. Typically, it takes double the time to achieve this scale of operations.” stated Vegrow Co-founder, Praneeth Kumar. 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. “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,” added Vegrow Co-founder, Mrudhukar Batchu.

Vegrow is a major player in India’s fruit sector, a vast, unorganised market with various intermediaries and a fragmented and localised operational structure that is set for tech-led upheaval. Vegrow’s multi-channel demand stack and demand-supply matchmaking technology provide it an edge.

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“Vegrow is committed to making a positive impact for both farmers and the planet,” said Vegrow Co-founder, Shobhit Jain. “Our ambition is to establish ourselves as the undisputed leader in every fruit category, ensuring transparency and higher income for farmers, while also reducing carbon consumption through supply chain optimization. We are excited to work with GIC, whose long-term vision and reputed global network can contribute to building a company that will last generations. We are also grateful for the continued support from our existing investors. As we focus on long-term institutional development and enhancing value for all stakeholders, we are excited for what the future holds.”

Per Prosus Ventures, Vegrow operates in an attractive sector and provides a superior supply and demand experience. The original team has executed well and prioritised profitability. Prosus Ventures expanded its ownership due to its growth prospects. It anticipates expansion.

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Matrix Partners India, Vegrow’s initial funders, has seen the company expand from concept to category leadership in the ~$50 billion fruit market. The founding team’s knowledge, systematic problem-solving, and technical skills to reduce waste and inefficiency are notable. Vegrow’s strategy has created a sustainable business model and enhanced supply chain income for everyone. The corporation still makes good operating earnings. Matrix Partners India has invested more in Vegrow in every funding round and is excited about its growth.

Elevation Capital feels Vegrow has had a significant impact on the fruits and agro sector in 3 years. They have enhanced farmers’ lives and revenues and shown that effectively deployed technology can promote efficiency and growth in decades-old supply chains. Elevation Capital is thrilled to deepen its cooperation in this round after a successful journey.

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Lightspeed has enjoyed working with Vegrow to change the agricultural value chain and B2B fruits industry with innovative technology. Vegrow has empowered and added value to all pyramid stakeholders with a strong national presence and sustainable model. Lightspeed is thrilled to assist Vegrow again and broaden its cooperation as it shapes B2B agri-tech.

About Vegrow

Tech platform Vegrow combines with farmers to aggregate supply and sell to organised demand. Vegrow streamlines farming and maximises land use. Vegrow is a VC-funded firm formed by IITians who love agtech and worked at AgroStar and ITC. Like UrbanCompany and Chronus, the team has built products from 0 to 1 and 1 to 100 to solve market and B2B problems.

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