Ugaoo, an urban gardening company has raised ₹47 crore in its Series A funding round led by V3 Ventures. Existing investors DSG Consumer Partners and RPG Ventures also participated in the funding round. Earlier, in November 2021, the company raised $2 million in its pre-Series A round.
The company plans to use the funds to expand its regional presence across the top 10 Indian cities and open 80 retail stores by FY 2030. It is also looking to broaden its product offerings by partnering with international plant suppliers and introducing a diverse selection of exotic plants and premium plant care products to the Indian market while continuing to enhance its core digital business.
Ugaoo aims to scale production to 5 lakh plants each month and maintain its market leadership position. The company is looking to expand its production capacity to 100 acres in the next 2 years to cater to the increasing demand.
Commenting on the funding, Sidhanth Bhalinge, Founder, Ugaoo, shared, “Reinforcing our belief that plants grow people, Ugaoo is on a mission to inspire a world where every plant journey is a personal revolution of inner change and growth. We are very excited to partner with V3 Ventures and deepen our relationship with our existing investors DSG and RPG. The Indian home and garden category is projected to grow at a CAGR of 30%, opening up significant opportunities for Ugaoo. We plan to deploy the funds towards product enhancement, expanding our regional fulfilment centres, and team growth. We will expand via new hubs in Kolkata, Kochi, Lucknow, Chennai, Guwahati, and Ahmedabad.”
Arjun Vaidya, Partner, V3 Ventures, said, “I first met Siddhant in 2021 and knew the business had something special going for it. Ugaoo operates in a largely unorganised market and is equipped to seize substantial market share thanks to its strong brand recall, deeply integrated supply chain, and seasoned team. This team has truly innovated with products in a category that has not seen enough innovation; just walk into an Ugaoo store and you’ll see it for yourself. We are very excited to make this investment and hope it will create millions of new plant parents and amateur gardeners, just like it did with me.”
Kunjan Chikhlikar, Head of Investments, RPG Ventures, added, “Ugaoo’s USP is providing a holistic one-stop solution for home gardening enthusiasts. The company leverages deep in-house expertise for developing superior products and seamless execution, ensuring affordability without sacrificing quality. We’re seeing a rising trend in plant parenting among young adults, which further bolsters our belief in the potential for growth in this sector.”
Founded in 2015 by Siddhant Bhalinge, Ugaoo operates a 25-acre farm in Talegaon (on the outskirts of Pune), leveraging state-of-the-art greenhouses and horticulture specialists to cultivate all of its plants in-house.
Ugaoo features 1,500+ SKUs across categories such as live plants, vegetable and flower seeds, soils and fertilisers, pots and planters, gardening tools and accessories, along with sustainable gifting options.
Driven by an omnichannel approach, Ugaoo retails pan India through a robust online and offline presence via its website and app, and 9 stores across 3 cities, including Pune, Mumbai and Bangalore.
From a revenue of ₹24 crores in FY 2023, Ugaoo has seen over 100% growth and closed FY 2024 at ₹63 crores, and has been operationally profitable the entire year.
Having achieved over 1 million orders in the past three years, Ugaoo currently has an annual recurring revenue (ARR) of over ₹100 crores.
