IDG Ventures India leads $4 million round in AgroStar, a mCommerce company that sells agricultural inputs directly to farmers. Funding round also saw participation from its existing investor Aavishkaar. It enables farmers to procure an entire range of agricultural goods by simply giving a missed call on the company’s 1800 number.
With this funding the company plans to expand operations from Gujarat and Maharashtra to 3-4 additional states over the next 12 months and strengthen its tech and leadership teams.
The company has partnered with multiple leading national and multinational brands whose agro products can be bought through AgroStar. Farmers can buy seeds, nutrients, crop protection, as well as hardware products.
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.”
Co-founded by Sitanshu Sheth & Shardul Sheth, the company is headquartered out of Pune and currently operates in the states of Gujarat & Maharashtra. Farmers in these states can procure an entire range agri-inputs like seeds, crop nutrition, crop protection and agri- hardware products and get the same delivered to their doorsteps.
India is an agrarian economy and not many startups that are being formed everyday cater to the needs of this segment. Over 58 per cent of the rural households depend on agriculture as their principal means of livelihood. With the help of such platforms, farmer’s hardships will ease out and also help in economy’s growth as agriculture, along with fisheries and forestry, is one of the largest contributors to the GDP.
The technological dis-connect has been the main reason for agriculture to be declining in a country which once was the largest producer and exporter of agricultural products.