AgroStar raises $4 million from IDG Ventures, others1 min read . Updated: 14 Aug 2015, 01:15 AM IST
The firm will use the funds to expand to new states and enhance its technology and leadership teams
New Delhi: AgroStar, a Pune-based m-commerce firm that sells agricultural inputs directly to farmers, has raised $4 million in a round led by IDG Ventures, the company said in a statement on Thursday.
Existing investor social venture fund Aavishkaar also participated in this round. The firm will use the funds to expand to new states and enhance its technology and leadership teams.
The start-up is registered under the company name ULink BioEnergy Pvt. Ltd and is currently present in Gujarat and Maharashtra. It plans to expand to Rajasthan and Madhya Pradesh shortly.
India’s second largest e-commerce firm Snapdeal’s Kunal Bhal and Rohit Bansal were the early backers of the start-up.
There are usually three or four layers of agents, dealers and distributors between farmers and the farm inputs they want to buy.
AgroStar, developed by Shardul Sheth and Sitanshu Sheth in 2012, claims to be eliminating these intermediary layers in agricultural purchases. The entire purchase cycle is triggered by a missed call from a farmer’s phone. An AgroStar customer care executive returns the call and takes down the purchase order.
The order is then delivered directly to the farmer through state transport systems or courier services. It sells seeds, nutrients, crop protection and hardware products through partnerships with multiple national and multinational brands.
It currently has two warehouses in Ahmedabad and Pune and claims to have processed 75,000 transactions since its inception. Over 1.5 lakh farmers are registered with it, the company claimed.