Fresh farm produce-based supply chain start-up Vegrow is in advanced talks to raise a round of funding from new as well as existing investors. If the funding is pulled through, this will be the second round of financing for the firm which is just a year old.
Lightspeed has been in conversation to lead a $12-15 million funding round in Vegrow for the past six to eight weeks. The terms are almost finalized and existing investors Matrix Partners, Ankur Capital, and Better Capital are also participating in it.
Founded in 2020 by Mrudhukar Batchu, Praneeth Kumar, Shobhit Jain, and Kiran Naik, Vegrow provides logistics, packaging, and advisory services to cultivators in Karnataka. Presently, it is likely to be valued in the range of $40-50 million.
In its July 2020 seed round led by Matrix, Vegrow had raised $2.5 million. Titan Capital along with angel investors including Rohit MA, Sanjiv Rangrass, Amit Lakhotia, and Ramakant Sharma also participated in this round.
Vegrow is the latest company to take a shot at a $43 billion market of the supply chain of B2B fresh fruits and vegetables. Waycool and Ninjacart are the two biggest companies already in the space. Ninjacart has the backing of Tiger Global, Walmart, and ABG Capital, while Waycool has been able to raise $80 million across multiple investment rounds.