After years of turbulence and shutdowns – from Otipy and Fraazo to Deep Rooted – the fresh commerce segment is staging a quiet comeback. Once written off as unsustainable, these startups that connect farms directly to consumers are re-emerging with new logic, changed models, and cautious investor confidence.
The signs are clear. Last month, Handpickd raised $15 million from Bertelsmann India Investments and others. Tamil Nadu-based KPN Farm Fresh attracted Rs 637 crore from Westbridge Capital, and Accel-backed FirstClub pulled in $23 million from existing investors, including Paramark Ventures and Aditya Birla Ventures.
“People now care about where their food comes from and are willing to pay for quality. Farmers earn more, wastage falls, and consumers get fresher produce. It’s a win-win,” Sandiip Bhammer, founder and co-managing partner, Green Frontier Capital, told FE.
The optimism stems from a shift in strategy. Instead of chasing the 10-minute delivery, fresh commerce 2.0 is taking a slower, steadier route, one that prioritises quality, consistency, and sustainable margins over speed.
Handpickd, which began operations in April 2024, has grown from 1,000 to over 100,000 orders and targets `40 crore in revenue by FY26.
It now operates in Bengaluru and Noida and plans to triple its footprint with 12 new transit stations for sorting and last-mile delivery. “In fresh, quality takes precedence over speed,” Anant Goel, founder and CEO of Handpickd, said. “No two apples are the same, nor are any two carrots. We want to deliver what the customer wants, and still make money. The business must be long-term, scalable, and sustainable,” he added.
This recalibration comes after the first wave of farm-to-table startups fell prey to quick commerce’s explosive growth. Zepto, for instance, sold 2.21 million units of produce daily in May 2025, up from 640,000 a year earlier. The resulting price wars and unrealistic delivery promises squeezed smaller players. But the tide is turning again, as consumers begin to distinguish between “quick” and “fresh”.
Kisankonnect’s journey mirrors that shift. Founded in 2020 with a 48-hour delivery model, it now delivers in 30–60 minutes across half its service areas in Mumbai and Pune. “After the success of horizontal e-commerce, we are seeing a rise in vertical commerce, which means companies that focus on one category and do it end-to-end,” founder and CEO Vivek Nirmal, said. Kisankonnect today caters to over 20,000 customers daily.
The appeal lies in predictability and trust. Investors are noticing that fresh commerce startups, which were once seen as high-risk, are now showing better margins and strong repeat rates. “People don’t mind waiting a bit if they get produce straight from the farm, fresher, tastier, and longer-lasting,” Bhammer said. “The farmer networks built by these startups can’t easily be copied by delivery apps,” he added.
Data backs the optimism. According to Grand View Research, the country’s fruits and vegetables market is projected to touch $62.4 billion by 2030, growing at 5.9% annually. Investors like Bertelsmann, which bet on Handpickd, believe the segment’s future lies in operational precision rather than speed alone.
“Fresh produce is a high-margin category but also complex and waste-prone,” according to Rohit Sood, partner at Bertelsmann India Investments. “While quick commerce reduces order-to-delivery time, Handpickd optimises harvest-to-delivery, cutting waste and enabling a true just-in-time supply chain,” he said.
Still, the road ahead isn’t without bumps. Building reliable cold storage, maintaining consistent supply, and ensuring fair farmer payments remain challenges. Experts say this version of fresh commerce will need patient capital and deep operational discipline to thrive.
The early signs suggest that lesson has been learned. The new players are leaner, more data-driven, and grounded in local sourcing. They are not trying to outpace the quick commerce giants, but are redefining what “fresh” means in a digital economy.
As Goel put it, “In fresh, it’s not about the fastest delivery. It’s about the right delivery”.