MUMBAI: Online vegetables and fruits seller Fraazo on Friday said it has raised USD 11 million (about Rs 82.31 crore) in a funding round led by Sixth Sense Ventures.
The National Bank for Agriculture and Rural Development (Nabard) backed NABVENTURES, and existing investors -- Equanimity Ventures, Manish Choksi (Asian Paints vice-chairman) and Apar Group also participated in the round, as per an official statement.
With the new fundraise, the company is set to expand operations pan-India, while cashing in on the unprecedented digital adoption within the fragmented fresh-food market, the statement said.
The company has a network of micro-fulfilment stores and is able to deliver the commodities in 30 minutes in the financial capital.
In the one year since its launch, it has served 1 million orders, it said.
"Fruits and vegetables, the largest category in perishables, is completely fragmented, offline, with no MRP constraint, nor GST - this, coupled with significant supply-chain moat, and high order frequency, makes it a highly scalable online opportunity," Nikhil Vora, the founder and chief executive of Sixth Sense Ventures, said.
"Verticalisation of supply-chain is critical for perishables, which is where horizontal grocery players have found it challenging, and the company has been able to address this by their fully-optimised fresh supply-chain," he added.
"The direct sourcing substantially increases farmers' income and provides them seamless access to urban markets at attractive prices," Nabard chairman G R Chintala said.