AgroStar, a mobile commerce platform for farmers that sells agricultural inputs on “direct-to-farmer” basis, has raised $4 million in a latest funding round from IDG Ventures India along with the participation of its existing investor Aavishkaar.
The company is currently operating in only four states of India – Gujarat, Maharashtra, Rajasthan and Madhya Pradesh. But, with the new cash coming in, it is now planning to expand it operations to other 3-4 states of India. It is also looking to strengthen its team in technology and leadership.
AgroStar was founded by Sitanshu Sheth & Shardul Sheth with an aim to transform agri-business for farmers in rural India. Through its platform, farmers can buy seeds, nutrients, crop protection, as well as hardware products related to farming. For this, the company has tied up with many national and international companies.
Commenting on the investment, T C Meenakshisundaram, Founder & Managing Director, IDG Ventures India said,
It is just the beginning of what an agricultural mCommerce platform can achieve, in a mobile-first nation. Having funded many vertical eCommerce leaders in early stage we believe AgroStar has the potential to be the disruptor and the leader in the Agricultural mCommerce vertical with a $ 200 billion market opportunity.
There are not many start-ups catering to the needs of agriculture segment in India. As more than 58 percent of the rural households depend on agriculture as their principal means of livelihood, start-ups in this segment could easy their work.