Home gardening start-up Ugaoo raises pre-series A round with DSG Consumer Partners, RPG Ventures
Gardening and houseplant start-up Ugaoo has raised Rs 15 crore in its pre-Series A funding round led by DSG Consumer Partners and RPG Ventures, the man’s venture capital arm. Harsh Goenka business, RPG group led.
The Pune-based startup, owned and operated by Ugaoo Agritech Pvt Ltd, aims to invest heavily in regional expansion, product improvement and team building.
“We plan to use the funds to expand our regional presence with centers and garden centers in Bangalore, Delhi, Kolkata and collaborate with international plant companies to introduce a wider range of exotic plants and premium plant care products. range in the Indian market, ”said Siddhant Bhalinge, founder of Ugaoo.
Over the past six years, Ugaoo has fulfilled over a million orders and we aim to produce at least 500,000 plants per month by the end of next year, he adds.
The online gardening portal offers gardening and plant care products, including live houseplants, planters and vegetable garden seeds, through its website as well as in marketplaces such as Amazon and Flipkart. He has also built two experience stores in Pune that aim to inspire people to bring nature into their homes and aesthetically achieve better mental health and an ambitious quality of life.
Ugaoo, based in Maharashtra, was founded in 2015 by Bhalinge, a landscape architect at California State Polytechnic University.
Ugaoo claims to have experienced 120% year-over-year growth.
“It is estimated that the plant and home gardening industry will grow at a CAGR of 50% and reach a market size of $ 4 billion by 2025 in India, thus holding great potential for growth,” Bhalinge said. , which originated from a family business in seeds and agriculture.
Ugaoo’s plants are grown in-house, in its state-of-the-art greenhouses with the help of horticultural experts to ensure complete quality control from planting to shipping.
The startup takes on the challenge of avoiding damage to plants in transit while selling online by using “innovative soil mixes filled with jelly and sturdy reusable packaging that can support a payload of 50kg and 8-10 days in transit from nursery to destination “.
“Plant parenthood is increasing in all age groups and the category has tremendous growth potential. The category is very unorganized and the offline shopping experience is poor. Ugaoo has the potential to be the brand that defines the category by thoughtfully solving customer problems with a digital-centric approach, ”said Hariharan Premkumar, India Manager of DSG Consumer Partners.
DSG Consumer Partners, based in Singapore, is an investment firm focused on identifying, investing and growing consumer businesses in India and South East Asia. Recently, the company invested $ 6.5 million (approximately Rs 48 crore) in Sleepy Owl Coffee Pvt. Ltd with Rukam Capital.
“The verticalization of cities, a vast market for interior and commercial decoration as well as the donation of plants and in-depth knowledge of the business sector have prompted us to partner with Ugaoo Agritech. We are also seeing an increasing trend in plant parenting among young adults, ”said Kunjan Chikhlikar, head of RPG Ventures.
Other such companies in the space are Nurserylive, the Pune-based online gardening marketplace; Ferns N Petals and Farmizen from Bangalore; Crofarm, a startup that connects farmers with retailers; among others.