Deep Rooted, a farm to fork startup, has raised $12.5million in Series A financing round led by IvyCap Ventures. Existing investors Accel, Omnivore and Mayfield also participated. The round’s maiden round was held in 2022.
Deep Rooted will be able to expand its operations in major cities of Southern India, increase technology capabilities, and hire across departments with the funding, stated the Bengaluru-based company.
Deep Rooted was originally a B2B company. It used to manage 100 acres and supply vegetables and fruits for over 120 restaurants in Bengaluru. The pandemic that struck its core business caused Deep Rooted to change its direction. It has been delivering directly to customers in Bengaluru and Hyderabad over the past year.
Deep Rooted raised $5.5 million Series B round in 2020 for its B2B2 company. It used the proceeds to expand its consumer business. The company competed with Ninjacart, a walmart-backed B2B firm, but now, with its B2C platform, competes with Otipy and Country Delight. Mumbai-based Fraazo is currently seeking merger and acquisition opportunities with Swiggy, Flipkart and Temasek.
In the last two and a quarter years, Agritech startups have thrived. Economic pitch Agritech Report showed that close to 100 startups raised nearly $1.33 Billion through 139 deals from January 2020 to June 2022. Vegrow, Veg Route and Produze joined the list in the last three months.