Urban Harvest Expands with Acquisition of Cocosutra

B2B fresh produce and food supply startup Urban Harvest has completed the acquisition of premium gourmet food brand Cocosutra for an all-cash amount of Rs 2.5 crore. This move is aimed at allowing Urban Harvest to grow into value-added food categories and to enhance its foothold in the restaurant and HoReCa sectors. The acquisition incorporates gourmet, high-margin products into Urban Harvest’s portfolio, enabling the company to leverage its current restaurant demand for quicker scaling.

Integration and Expansion Plans

Urban Harvest has stated that integration efforts are already in progress, with the complete merging of systems, teams, and operations anticipated to finalise within the next two months.

About Cocosutra

Cocosutra, established as a gourmet food brand, functions within the premium packaged food market. Post-acquisition, Urban Harvest intends to enhance Cocosutra’s reach by broadening distribution capabilities, increasing price competitiveness via supply chain enhancements, and refining unit economics through its established procurement and logistics framework.

Business Growth Post-Acquisition

As reported by Urban Harvest, Cocosutra’s business has already experienced a threefold increase since the initiation of the acquisition process, attributed to a broader customer base and enhanced backend operations. The company forecasts that Cocosutra will evolve into a brand generating Rs 100 crore in revenue over the next 24 months, buoyed by Urban Harvest’s relationships with restaurants and its B2B distribution system.

Urban Harvest’s B2B Operations

Urban Harvest operates as a B2B supplier, providing fresh produce and food products to restaurants, cloud kitchens, and food service entities. The company has not disclosed any alterations to Cocosutra’s brand identity and has confirmed that the brand will continue to maintain its existing identity while integrating fully into Urban Harvest’s platform.