<div>Pune-based AgroStar, a direct-to-farmer m-commerce firm launched in 2012, has raised close to $4 million from venture capital investors IDG Ventures India and existing investor Aavishkaar Venture Management.</div><div> </div><div>This is in its second round of funding for the startup that was founded by Sitanshu Sheth and Shardul Sheth in an attempt to transform the agri-business for farmers in rural India. It is understood that the firm has raised the current round of capital to enhance its technology and leadership teams and expand its operations across India. Headquartered in Pune, AgroStar currently operates in the states of Gujarat, Maharashtra, Madhya Pradesh and Rajasthan. It is looking to foray into an additional 3-4 states over the next 12 months, as per a statement issued by Consultancy firm o3 Capital acted as the sole advisor to AgroStar on the transaction.</div><div> </div><div>AgroStar has developed a direct to farmer m-commerce platform where farmers can buy an entire range of agri inputs like seeds, crop nutrition, crop protection and hardware products by simply giving a missed call on the Company’s 1800 number. The Company is aiming to address the challenges of demand and supply mis-match, adulteration, poor quality products, unavailability of key products etc. Faced by Indian farmers while purchasing agri inputs.</div><div> </div><div>IDG Ventures India is a leading India-focused technology venture capital fund. The fund is part of IDG Ventures, a global network of technology venture funds which has more than $ 4 billion under management. Aavishkaar, on the other hand, is an early stage, India focused venture fund with over $155 million under management. It primarily invests in agriculture, dairy, education, energy, handicrafts, among others.</div><div> </div><div>The current investment signals a strong vote of confidence among investors in the new breed of India's entrepreneurs. In the first half of the current calendar year, as many as 363 venture capital deals were sealed, three times more than the number of private equity deals, which stood at 99, as per data available with Grant Thornton.</div>
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