Seed company Namdeo Umaji will be investing Rs 3 crore in its ecommerce venture, Ugaoo.com, a gardening and farming portal. Ugaoo that focuses on gardening and landscaping market was launched earlier this year. The funds raaised from this round will be used to meet the demand from the agriculture sector, strengthening the infrastructure and product offerings. The company said that revenues had been growing 200% month on month since its launch in January this year, while sales had increased by 500% in the same time period. It averages between 120-150 orders a day.
Siddhant Bhalinge, founder of Ugaoo.com said in a statement:
“We noticed a surprising trend during this monsoon sowing season that many orders, organic as well as commercial hybrid seeds, were bought by the urban population and were delivered at their native places across India. These orders helped us in analyzing the expanding market potential across tier 2 markets. We foresee an enormous market opportunity there, which is untapped or at a very nascent stage and can be built in a better way.”
The company has added 1600 varieties of products, from seeds, pots, gardening tools and books to cater to the growing market needs. It has also introduced a new category, live plants, and plans to add a 100 new plants a month with the aim of becoming the largest online plant nursery in India. It is also setting up a gardening professionals team which would cater to the urban population and set up edible gardens and terrace gardens for their customers in Pune and Mumbai to promote their ‘Grow your own Food’ campaign.
The company now also plans to reach out to consumers in Tier 2 cities like Surat, Nashik, Kochi, to tap into the growing market potential. The ventyre has been constantly working with farmers and has been providing them high quality organic seeds. The venture is also implementing a buyback scheme for farmers who buy their supplies from Ugaoo. Bhalinge adds:
“Majority of our investments will be going towards fulfilling the demands of the agriculture sector. We are partnering with all the major commercial seeds brands in India and adding more than 2000 new varieties of vegetable and flower seeds,”