Existing investors Matrix Partners India, Ankur Capital, Better Capital and Titan Capital also participated in the round, the company said.
Founded last year by Praneeth Kumar, Mrudhukar Batchu, Kiran Naik and Shobhit Jain, Vegrow helps in farm discovery, quality profiling of produce, market intelligence and smart matchmaking between farm-level inventory and customer requirements.
The company has scaled up rapidly among both farmers and B2B customers, resulting in nearly 20x topline growth with a presence in over 30 cities, it said in a statement.
Vegrow is looking to initially focus on the $50 billion fruits and high-value vegetables segment, the company said.
“At Vegrow, we focus on select products as compared to building a large basket. Each of these products is a multi-billion-dollar opportunity. This enables us to go deep in the product value chain and unlock massive growth in this sector,” the company said.
It addresses challenges around farmland under-utilization and supply fragmentation for farmers and delivers consistent quality along with fill rate to customers, Vegrow added.
Agriculture has largely remained removed from digital disruptions, despite strong tailwinds from increased internet reach and adoption.
“We believe any effort to digitize these value chains will have to keep farmers and their interests at the core,” said Akarsh Shrivastava, Vice President, Elevation Capital.
India’s B2B agri market is pegged at around $300 billion but is a complex maze of fragmented supply with over 120 million farmers across 30 states.
“The number one pressing need of any small supplier, a farmer in this case, is higher revenue realization. It’s not accessing inputs, credit or crop advisory. Therefore, we believe companies building marketplaces between farmers and buyers, using technology to eliminate inefficiencies will have the largest market opportunity eventually,” said Vaibhav Agrawal, Partner, Lightspeed.
Fraazo, a direct-to-consumer brand in the fresh vegetables and fruits space, raised $15 million earlier this month in a Series A round led by Sixth Sense Ventures.
Egreens, an early stage agri-focused investor, has previously pumped in Rs 15 crore in VegEase, a D2C fruits and vegetable delivery business it had incubated in-house.