Urban Harvest, a B2B food-tech startup that supplies food ingredients, fresh produce and automated coffee machines to restaurants and cloud kitchens, is in advanced talks to raise about ₹300 crore in fresh funding. According to reports from Mint, the round is expected to include investors such as Info Edge, the family office of Mankind Pharma, and angel investor Sandeep Kapadia, among others. The proposed fundraise would value the New Delhi-based startup at about ₹1,500 crore, nearly double its previous valuation of ₹780 crore as of October last year. Urban Harvest has so far raised a total of ₹300 crore from investors including Info Edge, Red Chillies Entertainment and the Mankind Pharma family office.
The latest fundraise comes as Urban Harvest seeks to expand its warehouse network and enter new markets, betting that restaurants and food-service operators are increasingly shifting away from traditional distributors toward technology-enabled procurement platforms. As reported by Mint, the company currently serves parts of the National Capital Region, Bhuvaneshwar, Bengaluru, and Ahmedabad, and plans to expand into Delhi, Hyderabad, Mumbai and Jaipur. Founded in 2019, Urban Harvest positions itself as a B2B quick-commerce platform serving the hotel, restaurant and café, or HoReCa, segment, competing with Hyperpure, the business supplies arm of Zomato.
According to Mint reports, Urban Harvest's revenue rose to ₹118 crore in FY25 from ₹46.5 crore a year earlier, while reporting a net loss of ₹35 lakh. In FY26, revenue increased to ₹385 crore and the company posted a profit of ₹3.5 crore. The company is targeting revenue of about ₹1,500 crore in FY27 and expects profitability to reach ₹40-50 crore by the end of the current financial year, according to Sidhantt Suri, founder of Urban Harvest.
Unlike consumer-focused quick-commerce companies that typically operate warehouses spanning 2,500-4,000 sq. ft, Urban Harvest runs larger facilities ranging from 30,000-50,000 sq. ft. As reported by Mint, the company currently operates five dark warehouses across four cities and plans to add five more after the fundraise. The company says it serves about 16,000 restaurants every month and adds between 2,000 and 3,500 new restaurant customers monthly. Urban Harvest operates two fulfilment models: a standard next-day delivery service and a just-in-time delivery offering tailored for restaurants.
The company's growth is being driven in part by disruption in India's traditional food-distribution network, with Suri noting that if 10 new distribution houses are opening, 100 are closing. According to Mint reports, alongside its distribution business, Urban Harvest has expanded into private-label products and food brands, owning packaged water brand Hello Fresh and acquiring premium gourmet food brand Cocosutra in an all-cash deal valued at ₹2.5 crore last year. The expansion plans come as India's food-service industry continues to grow, with the market projected to increase from $85.19 billion in 2025 to $93.97 billion in 2026 and reach $153.37 billion by 2031, according to market research firm Mordor Intelligence.
