In a significant boost to India’s agritech sector, Bengaluru-based startup Vegrow has successfully raised $46 million in a Series C funding round, with Singapore-based GIC leading the investment charge. The funding will be instrumental in expanding Vegrow’s presence in India and strengthening its global network. Notably, this marks GIC’s inaugural venture into India’s burgeoning agritech space, showcasing the sector’s increasing appeal to global investors.
Chifu Agritech Pvt Ltd, the company behind the business-to-business (B2B) fruits marketplace Vegrow, achieved the final close of its Series C funding with a mix of primary and secondary infusions. Existing investors, including Prosus Ventures, Matrix Partners India, Elevation Capital, and Lightspeed Venture Partners, also participated in the round.
Established in 2020 by Praneeth Kumar, Mrudhukar Batchu, Kiran Naik, and Shobhit Jain, Vegrow focuses on providing a range of tech solutions such as crop advisory, grading, packaging, logistics, and sales to farmers. These solutions aim to address supply chain challenges, ultimately optimizing farmers’ income by streamlining the highly fragmented and localized fruit cultivation ecosystem.
Batchu, co-founder of Vegrow, highlighted the company’s commitment to leveraging data and technology for valuable insights and efficient supply chain management. The startup has achieved notable milestones, reducing perishable inventory wastage to only one-fourth of the industry average and consistently achieving industry-leading profit margins.
The funding news follows Vegrow’s Series B round last July, where it raised $25 million led by Prosus Ventures. The capital infusion from the Series C round will further propel Vegrow’s geographic expansion, technological development, and hiring initiatives.
Amidst a landscape dominated by traditional tools and weather-dependent farming practices, agritech startups like Vegrow are spearheading transformative changes through technology. This trend has garnered significant interest from investors and corporates alike, reflecting the sector’s potential.
As the agritech scene continues to evolve, homegrown startups have been securing substantial investments. In September, Ergos raised $10 million in its Series B funding round, while Leads Connect secured INR 500 Crores ($62.5 million) from FMCG major BL Agro Industries. According to data, Indian agritech startups secured a total of $2.1 billion between 2014 and May 2023.
