Vegrow, a B2B marketplace for fruits, has reportedly raised USD 25 million in a Series B funding round. The latest round was led by Prosus Ventures, along with the participation of existing investors including Elevation Capital, Matrix Partners India, Ankur Capital, and Lightspeed Venture Partners.
According to the co-founder Shobhit Jain, the Bengaluru-based Vegrow intends to use the fresh capital in hiring new employees, scaling up the tech stack, and expanding the geographic reach.
For those unaware, Vegrow was founded in 2020 by Kiran Naik, Shobhit Jain, and Mrudhukar Batchu. The firm provides the connection between the supply and demand for fruits by combining wholesalers, modern trade, semi-wholesalers, and general trade in 100 cities on the demand side and above 20,000 farmers on the supply side.
Jain claims that the business processes more than 200 tons of fruits every day. In the last year, Vegrow has increased by 15 times, with a gross margin of 20%. The growth of Vegrow comes on the heels of deep tech and data stacks across the value chain.
In tier-I, tier-II, and tier-III markets, the firm has developed tools to estimate production, use farmer chatter, and measure demand. It is worth mentioning here that the founders collectively own about 40% of it, while the institutional investors own the remaining equity.
Last year Vegrow raised USD 13 million in a Series A funding round that was led by Elevation Capital and Lightspeed Venture Partners. By the current year-end, the company is anticipated to have an annualized revenue run rate of USD 200 million. Within the next five years, Vegrow aims to achieve USD 5 billion and grow sustainably.
The business estimates that India’s fruit market is worth USD 60 billion, where every fruit represents a multi-billion-dollar opportunity.