[Funding]: Agritech VeGrow raises $2.5 million led by Matrix Partners and Ankur Capital

VeGrow has raised $2.5 million in seed funding. The major participation was from Matrix Partners and Ankur Capital. The Bengaluru-based agritech focusses on aggregating small farms and increasing the land utilization for farmers.

About VeGrow

Praneeth Kumar, Shobhit Jain, Mrudhukar Batchu and Kiran Naik found VeGrow in April 2020. The tech-based startup partners with farmers and aggregates supply and it sells through partnership. It has a  market size of $43 Billion. It further partners with small-hold farmers on a profit-sharing model and helps improve their income. Using technology across the various stages of the farming cycle, the startup says it aids farmers in crop planning, gives them access to high-quality inputs, monitors their adherence to best farming practices and sells their harvest to the right buyers for the right price.

“Our collective experience of working on multiple agri initiatives led us to realise that, with the right set of tech interventions, farming can be a highly remunerative business,” said Kumar.

VeGrow is investing in technologies that will improve farming and in making the farming supply chains more efficient, to help farmers realise the maximum value from every harvest. The four founders also have varying levels of experience in the farming sector. Kumar and Jain started their careers at ITC’s agribusiness division. On the other hand, Batchu and Naik have had practical experience of farming.

About the Funding

Better Capital, Titan Capital, Sanjiv Rangrass, CEO of ITC’s agribusiness, Cloud9 founder Rohit MA, Livspace founder Ramakant Sharma, and Park+ founder Amit Lakhotia, also participated in the funding round.

Ritu Verma, co-founder and managing partner at Ankur Capital said:

“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.”

Further, Tarun Davda, managing director at Matrix Partners India said:

“VeGrow’s model of aggregating fragmented farms to help unlock economies of scale with technology-led interventions. This significantly increases the earning potential of their partner farmers.”

Read More: Startup Circle: How did AgriTech Sensegrass turn traditional farming into Smart Farming?