In a significant boost to India’s burgeoning urban gardening sector, Pune-based startup Ugaoo has secured ₹47 crore ($5.6 million) in Series A funding led by V3 Ventures, with participation from existing investors DSG Consumer Partners and RPG Ventures. The investment marks a crucial milestone for the direct-to-consumer (D2C) brand as it aims to capitalize on the rapidly growing home and garden category in India.
Founded in 2015 by Siddhant Bhalinge, Ugaoo has established itself as a prominent player in the urban gardening space, operating a sophisticated 25-acre farm in Talegaon near Pune. The company distinguishes itself through its integrated approach, combining advanced greenhouses and in-house horticulture expertise to maintain a quality-controlled supply chain.
The fresh capital injection comes at a time when Ugaoo has demonstrated remarkable growth, with its revenue more than doubling from ₹24 crore in FY23 to ₹63 crore in FY24. The company currently boasts an impressive annual recurring revenue of ₹100 crore and has achieved operational profitability in the last fiscal year.
Strategic Expansion Plans
The funding will fuel Ugaoo’s ambitious expansion strategy, which includes establishing a presence in India’s top 10 cities and opening 80 retail stores by FY30. The company plans to set up new regional hubs in key locations including Kolkata, Kochi, Lucknow, Chennai, Guwahati, and Ahmedabad, significantly expanding its current footprint of three stores in Pune, Mumbai, and Bengaluru.
Ugaoo’s growth strategy is firmly rooted in an omnichannel approach, combining physical retail presence with strong digital capabilities. The company currently reaches customers through its website, mobile app, and partnerships with major e-commerce platforms like Amazon and Flipkart, as well as quick-commerce services such as Zepto, Swiggy, and Blinkit.
Market Opportunity and Growth Potential
According to Siddhant Bhalinge, Ugaoo’s founder, the Indian home and garden category is projected to grow at a CAGR of 30%, presenting substantial opportunities for expansion. The company has already demonstrated its market appeal by completing over 1 million orders in the past three years and building a strong customer base, particularly among women aged 25-60 years.
Arjun Vaidya, partner at V3 Ventures, highlighted Ugaoo’s potential to capture substantial market share in what remains a largely unorganized sector, citing the company’s strong brand recall and deeply integrated supply chain as key competitive advantages.
Product Innovation and Market Impact
Beyond geographical expansion, Ugaoo plans to diversify its product portfolio through international collaborations, introducing exotic plants and premium care products to the Indian market. The company’s current offerings include indoor and outdoor plants, flowering varieties, succulents, and high–yield vegetable and flower seeds, along with essential gardening supplies like soils, fertilizers, and tools.
Implications for Indian Startup Ecosystem
Ugaoo’s successful funding round and growth trajectory represent a significant validation of the D2C model in the home and garden category. The company’s ability to achieve profitability while maintaining strong growth rates sets a positive precedent for other startups in the space. As urban gardening continues to gain popularity among Indian consumers, Ugaoo’s expansion could help organize and elevate the entire sector, potentially creating new opportunities for related businesses in the ecosystem.
The funding and expansion plans position Ugaoo to play a pivotal role in shaping India’s urban gardening market, while potentially inspiring more entrepreneurs to enter the space with innovative solutions for the growing number of urban gardening enthusiasts across the country.
