Mumbai-based food-tech startup Pluckk, backed by Bollywood icon Kareena Kapoor, is poised for significant expansion after securing $10 million (approximately Rs 85 crore) in its Series A funding round. This investment, led by Euro Gulf Investment, marks a pivotal moment for the farm-to-fork platform as it looks to capitalize on the growing demand for fresh, lifestyle-focused produce. This fundraising comes after a three-year gap, signaling renewed momentum and investor confidence in Pluckk’s business model and future prospects.
Fueling Ambitious Growth Plans
According to regulatory filings, Pluckk’s board has approved the issuance of Series A compulsory convertible preference shares to raise substantial capital. The company intends to strategically deploy these fresh funds to fuel aggressive growth initiatives, manage interest payments on existing debentures, and address other general corporate purposes. This injection of capital will undoubtedly provide Pluckk with the necessary resources to scale its operations, enhance its technological infrastructure, and broaden its market reach. Industry estimates suggest that this funding round could value Pluckk at around $50-55 million post-allotment, highlighting the significant potential seen in the company.
A Unique Farm-to-Fork Proposition
Founded in 2021 by Pratik Gupta, Pluckk has carved a niche for itself in the competitive food-tech landscape by focusing on delivering fresh, lifestyle-oriented produce directly from farms to consumers. Beyond the standard fruits and vegetables, Pluckk distinguishes itself by offering trendy and health-conscious options such as vegan alternatives, low-carb choices, and products specifically targeted toward gut health and immunity. This curated selection caters to the evolving needs and preferences of modern consumers who are increasingly mindful of their dietary choices and overall well-being.
Strategic Acquisitions to Expand Reach
Before this Series A funding, Pluckk had already demonstrated its ambition for growth through strategic acquisitions. The company secured $5 million in seed funding from Exponentia Ventures, which laid the foundation for its initial expansion. Following this, Pluckk acquired KOOK, a DIY meal kit platform, for $1.3 million, further diversifying its offerings and tapping into the growing popularity of home-cooked meals. Last year, Pluckk also acquired nutrition brand Upnourish for $1.4 million, signaling its intent to integrate nutrition-focused products into its portfolio and cater to a wider health-conscious audience.
Eyeing Significant Revenue Growth
Pluckk has set ambitious targets for the current fiscal year, aiming for an Annual Recurring Revenue (ARR) of Rs 200 crore. While the company experienced a solid 25.6% year-on-year revenue growth in the fiscal year ending March 2024, reaching Rs 42.8 crore compared to Rs 34 crore in FY23, it also reported a loss of Rs 41.03 crore during the same period. The Series A funding will be crucial in helping Pluckk bridge this gap between revenue growth and profitability as it scales its operations and focuses on achieving its revenue targets.
Navigating a Competitive Market
Pluckk operates in a competitive market, facing rivals such as Gourmet Garden, Kisankonnect, and to some extent, Otipy. Notably, the market has also witnessed the closure of major players like Deep Rooted and Fraazo despite significant funding, highlighting the challenges and complexities of the fresh produce delivery sector. Pluckk’s focus on lifestyle-centric produce and its strategic acquisitions could provide it with a competitive edge in this dynamic environment. The recent funding round underscores investor belief in Pluckk’s unique value proposition and its potential to thrive in the long term. This infusion of capital will be instrumental in strengthening Pluckk’s market position, expanding its customer base, and solidifying its place as a key player in the business-to-consumer fresh produce food-tech space.
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