India-based agricultural technology startup VeGrow has raised $2.5 million in seed funding led by Matrix Partners and Ankur Capital. Better Capital, Titan Capital, Sanjiv Rangrass, CEO of ITC’s agri business, Cloudnine founder Rohit MA, Livspace founder Ramakant Sharma, and Park+ founder Amit Lakhotia, also participated in the funding round.
Founded in April by Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu and Kiran Naik, Vegrow aggregates small farms with the aim of bringing economies of scale to the farmers using technology.
The startup partners with small scale farmers on a profit-sharing model and helps improve their income by using and leveraging technology across the various stages of the farming cycle.
Vegrow is involved in every stage of the production process. It provides high quality seeds to the network of farmers, monitors adherence to best farming practices and also sells the farm yields to the right buyers for a good price.
“Our collective experience of working on multiple agri-initiatives led us to realize that, with the right set of tech interventions, farming can be a highly remunerative business,” said Kumar.
VeGrow plans on investing in technologies that will improve farming and and also make the farming supply chains more efficient in order to help farmers realize the maximum value their harvest.
“We are excited to kick off our second fund by partnering with VeGrow. The team’s depth of understanding the market, coupled with their approach to use technology to drive scale is what we feel sets them apart,” said Ritu Verma, co-founder and managing partner at Ankur Capital.
“VeGrow’s model of aggregating fragmented farms to help unlock economies of scale with technology-led interventions, significantly increases the earning potential of their partner farmers,” said Tarun Davda, managing director at Matrix Partners India.