Vegrow Raises $40 Million in Series C Extension to Revolutionize India’s Fruit Supply Chain
Revolutionizing the Fruit Trade
Vegrow, a Bengaluru-based AgriTech startup, raised $40 million in a Series C extension round in January 2025, led by GIC and joined by Prosus Ventures, Matrix Partners India, Elevation Capital, Lightspeed Venture Partners, and Ankur Capital. This boosts Vegrow’s total funding to $126.5 million, valuing the company at $350 million. As India’s leading B2B fruit marketplace, Vegrow connects 30,000 farmers with over 2,000 businesses across 250+ districts and seven countries, handling 300 tonnes of fruit daily. With a goal of $500 million in annualized revenue by FY26, Vegrow is reshaping India’s $60 billion fruit market with tech, transparency, and sustainability.
A Farmer-First Mission
Founded in 2020 by IIT alumni Shobhit Jain, Mrudhukar Batchu, Praneeth Kumar and Kiran Naik, Vegrow uses AI to streamline the fruit supply chain. Its platform links farmers directly to wholesalers, retailers, and exporters in 100+ cities, cutting waste to 4–5% (a quarter of the industry’s 20–30%) and boosting farmer incomes by 15–20% through fair pricing and instant digital payments. Vegrow’s app provides crop advice, while its profit-sharing model simplifies farming for 30,000 farmers, 84% of whom joined organically.
Funding That Fuels Growth
Vegrow’s rise is backed by strategic funding (in US dollars):
- 2020 (Seed): $2.5 million from Matrix Partners India and Ankur Capital to build its tech platform.
- 2021 (Series A): $13 million, co-led by Lightspeed and Elevation Capital, to reach 30 cities.
- 2022 (Series B): $25 million, led by Prosus Ventures, with a $170–180 million valuation.
- 2023 (Series C): $46 million, led by GIC, for national and global expansion.
- 2025 (Series C Extension): $40 million, led by GIC, to scale operations and exports.
This $126.5 million has made Vegrow a leader in pomegranates and a top-five player in bananas and mangoes.
Tech That Transforms
Vegrow’s AI-driven platform ensures precise grading and demand-supply matchmaking, achieving 20% gross margins and an 85% order fill rate. Its blockchain-based traceability pilot, praised on X, tracks produce from farm to market, ensuring transparency. Handling 10+ fruit categories like pomegranates and bananas, Vegrow partners with 400+ Farmer Producer Organizations (FPOs) to support 400+ production pockets. Its tech stack manages sourcing, packaging, and logistics, delivering fresher produce while cutting carbon emissions through optimized supply chains.
Big Numbers, Bigger Impact
In FY24, Vegrow hit $150 million (Rs.1,200 crore) in revenue, with a 15X growth spurt from 2021 to 2022. It’s targeting $500 million (Rs.4000 crore) by FY26, processing 300 tons daily (up from 200 tons in 2022). Serving 2,000+ businesses, including retailers and exporters in West Asia, South Africa, and Turkey, Vegrow plans to reach 10+ countries by 2026. Its 546 employees drive innovation, and its model reduces post-harvest losses, which typically hit 20–30% (FAO, 2023), while empowering farmers with data-driven insights.
What’s Next for the $40 Million?
The latest funding will power:
- Expansion: Reach tier-2 and tier-3 cities to meet growing demand.
- Tech Upgrades: Enhance crop advisory and blockchain traceability.
- Global Growth: Expand exports to 10+ countries by 2026.
- Farmer Reach: Grow to 50,000 farmers by 2027.
CEO Praneeth Kumar said, “We’re building a transparent, sustainable fruit ecosystem, empowering farmers and scaling exports.” GIC’s Chua Kee Lock added, “Vegrow’s tech and rapid growth make it a standout in AgriTech.”
Earning Praise and Making Waves
Its blockchain pilot and FPO partnerships have sparked buzz on X for empowering smallholder farmers. By cutting intermediaries, the company ensures fresher produce and fairer prices, aligning with global sustainability trends. The impact—slashing waste, boosting incomes, and reducing emissions—positions it as a leader in India’s $60 billion fruit market, set to grow rapidly with rising consumer and export demand.
The Road Ahead
With plans to onboard 50,000 farmers and hit $500 million in revenue by FY26, Vegrow is on track to dominate India’s fruit market and expand globally. Its $350 million valuation reflects investor trust in its scalable, tech-driven model. As one X user noted, “Vegrow’s tech is making farming fairer and fruit fresher!” By blending innovation with a farmer-first approach, Vegrow is transforming India’s fruit supply chain and creating lasting impact for rural communities.
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