Fresh produce startup Origin Fresh is in talks to raise $10 Mn in a Series A funding round from a clutch of investors as it looks to deepen its supply chain, expand its retail footprint, and bring premium fruits and vegetables to Indian consumers, founder and CEO Prashanth Vasan said.

The startup had previously raised $3.5 Mn across its seed and pre-Series A funding rounds led by Aeravti Ventures, with participation from Microlabs, Sattva Family Office, Switzerland-based Botnar Foundation and Spain-based Netri Foundation, he added.

The development comes as the Bengaluru-based startup seeks to differentiate itself in India’s increasingly crowded fresh produce market by building a vertically integrated business that controls nearly every step of the supply chain, from farm to consumer.

Origin Fresh plans to utilise the fresh capital to expand its retail footprint through new store openings in metro and tier II cities, invest in brand building and customer acquisition, and enhance its supply chain capabilities.

Founded in 2020 by Vasan and Sidharth Raveendran, Origin Fresh operates across both B2B and direct-to-consumer channels. It sources produce from more than 10,000 farmers through five collection centres before routing it to distribution centres in Bengaluru and Chennai. From there, the produce is delivered to customers through a network of 15 company-operated stores, which also serve as fulfilment hubs for both walk-in customers and online orders.

Unlike many grocery startups that rely heavily on third-party logistics, Origin Fresh owns and operates nearly its entire supply chain. About 90% of its logistics are handled in-house through a fleet of about 120 EVs, while its last-mile delivery workforce comprise salaried employees rather than gig workers.

Origin Fresh works directly with farmers, particularly smallholders owning less than two acres of land. For speciality vegetables and hydroponic crops, it provides agronomy support, conducts crop-specific workshops, offers demand forecasting, assists farmers in accessing government subsidies, and, where required, helps finance technology such as hydroponic infrastructure.

Around 700 farmers now exclusively cultivate exotic vegetables and hydroponic produce for the startup under buyback agreements, with Origin Fresh purchasing their entire harvest, including Grade A, B and C produce. The different grades are then channelled into different customer segments, ranging from retail consumers to restaurants and food processors, enabling farmers to monetise their entire output instead of discarding lower-grade produce.

According to Vasan, the model has helped participating farmers at least double their revenues over the past four years.

The startup also works directly with growers in Australia, Thailand and Spain for imported produce, bypassing intermediaries. Imported fruits currently account for about 40% of its fruit portfolio. Simultaneously, it is also working with Indian farmers to cultivate premium varieties such as Royal Gala apples in Himachal Pradesh’s Spiti Valley and speciality fruits from the Northeast.

Beyond fresh produce, Origin Fresh has also expanded into value-added products with the launch of Blends, a separate smoothie and cold-pressed juice brand. The offering allows the startup to utilise frozen fruits and lower-grade produce efficiently while creating an additional consumer brand.

Origin Fresh currently earns around 35% to 40% of its revenue from B2B customers, including more than 400 restaurants, with the remainder coming from direct consumers. Within the D2C business, offline and online channels contribute almost equally, although the mix varies across cities. Vasan said D2C order volumes have grown nearly fivefold over the past year.

Origin Fresh expects to post an operating revenue of ₹100 Cr in FY26, nearly double its FY25 revenue. Indian staples account for only about one-fifth of the business, while exotic vegetables contribute 20% to 25%. Fruits make up the largest share of its revenue.

To widen its reach, the startup has begun listing its products on quick commerce platforms such as Blinkit and Instamart, while simultaneously rolling out shop-in-shop counters within supermarkets. The format is already operational in 25 supermarkets in Chennai, with Bengaluru next in line. Each outlet is staffed by Origin Fresh employees to ensure consistent merchandising and quality standards.

Looking ahead, the startup plans to open around 10 new stores over the next year, establish at least 10 additional hydroponic farms around Bengaluru and Coimbatore, and expand into Maharashtra, Gujarat and eventually Delhi. Alongside its flagship stores, Vasan expects the shop-in-shop format to emerge as a faster and more capital-efficient channel.

The startup recently opened its first store in western India in Pune last month with 250 SKUs, including fruits, vegetables, hydroponic produce, exotic imports, and daily essentials. It also plans to set up three new collection centres in Maharashtra this year.

Origin Fresh is betting that ownership of the entire value chain, combined with its focus on premium and exotic fresh produce, will help it stand out in India’s increasingly competitive grocery delivery market.

Among newer entrants, Elixiir Foods is targeting urban consumers with what it describes as “affordable premium” products. Similarly, platforms like Pluckk, Fresh Farmse, KisaanSay and Frugivore offer fresh produce and end-products like juices and salads sourced straight from farms

Meanwhile, several existing players are also broadening their offerings as FirstClub entered the grocery segment last year with a focus on premium products.

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