Urban gardening company Ugaoo bags Rs 47 Cr in Series A funding

Urban gardening company Ugaoo has secured Rs 47 crore in its Series A funding round led by V3 Ventures. The round also saw participation from existing investors DSG Consumer Partners and RPG Ventures.

The company plans to utilise the funds to expand its regional presence across the top 10 Indian cities and open 80 retail stores by FY 2030, it said in a statement.

The company also aims 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.

Currently, ugaoo.com has over 1,500 SKUs across various categories including live plants, vegetable and flower seeds, soils and fertilisers, gardening tools and accessories, along with sustainable gifting options.

The company aims to scale production to five lakh plants each month and maintain its market leadership position. Additionally, it also plans to expand its production capacity to 100 acres in the next two years to cater to the increasing demand.

“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,” said Sidhanth Bhalinge, Founder, Ugaoo.

Founded in 2015, Ugaoo saw over 2.5X growth from a revenue of Rs 24 crore in FY23, to Rs 63 crore in FY24.

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“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," said Arjun Vaidya, Partner, V3 Ventures.

"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,” he added.

Ugaoo retails pan India through both online and offline presence via its own website and app, and nine stores across three cities, including Pune, Mumbai and Bangalore. The products are also available on ecommerce platforms like Amazon and Flipkart, and quick commerce platforms like Zepto, Swiggy, and Blinkit.