AgriTech Market Vegrow Raises $25M for Expansion

Vegrow, a B2B AgriTech fruit marketplace based in Bengaluru, India, has raised $25 million in a Series B funding round.

As the Economic Times reported Monday (July 11), the round was led by Prosus Ventures, with participation by existing investors Matrix Partners India, Elevation Capital, Lightspeed Venture Partners, and Ankur Capital.

“We will use the capital to expand our geographic presence, hiring, beef up our tech stack and to grow further,” said Co-founder Shobhit Jain.

This funding follows last year’s Series A, which brought in $13 million with the help of lead investors Lightspeed Venture Partners and Elevation Capital.

Founded in 2020 by Jain, Praneeth Kumar, Mrudhukar Batchu and Kiran Naik, Vegrow connects multiple players in the fruit business, working with wholesalers, semi-wholesalers, modern trade and general trade in 100 cities and upward of 20,000 farmers.

According to Jain, the company processes more than 200 tons of fruit per day, with the company growing 15 times in the last year.

“The growth has been unlocked on the back of our deep tech and data stack across the value chain,” he told the Economic Times. “We have built capabilities to harness farmer chatter, estimate farmland produce and measure demand across tier-I, II and III markets.”

Learn more: India’s WayCool Foods Raises $6.5M to Boost Technology

The news comes two days after B2B agri-commerce company WayCool Foods raised $6.5 million in debt funding to pay for technology-related expansions.

Also based in India, WayCool aims to become the world’s largest food development and distribution services company and positively impact the lives of 500,000 farmers.

The company provides product sourcing, food processing, branding, marketing, last-mile distribution, and farm inputs, giving WayCool control over the food value chain. The startup distributes a variety of directly-sourced fresh produce, works with more than 150,000 farmers, and runs a full-stack product range across several channels, to 100,000 clients.