AgroStar, a Pune-based agricultural technology firm founded in 2013, has secured ₹57.6 crore (approximately $6.7 million) in its latest funding round. This funding, sourced from existing investors including Accel India, marks another chapter in the startup’s ongoing efforts to support farmers through access to quality agricultural inputs and practical information.
While the company’s primary focus is improving input accessibility, its larger mission lies in helping Indian farmers make better decisions in an industry often marred by uncertainty and limited advisory support.
Continuing Support from Longtime Investors
According to recent regulatory filings accessed via the business intelligence platform Tofler, AgroStar’s board approved the issuance of 1,45,385 compulsory convertible non-cumulative preference shares. Each share is priced at ₹3,965, bringing the total capital raised to ₹57.6 crore.
This round was led by Accel India and also saw renewed participation from other existing backers including Aavishkaar India, Bertelsmann, Evolvence India, Chiratae Ventures, and Hero Enterprises. The round indicates continuing confidence in the company’s direction, despite financial challenges that have accompanied its rapid growth.
A Decade-Long Journey Rooted in Farmer Support
Founded by brothers Sitanshu and Shardul Sheth, AgroStar was created with a simple idea: to make good quality agricultural inputs available to farmers more reliably. The Sheths, through their observations and direct interactions with rural communities, noticed recurring problems—ranging from inconsistent access to seeds and fertilizers to a persistent lack of reliable information about farming best practices.
In response, AgroStar developed a mobile-based advisory and input delivery platform that helps farmers choose the right products for their specific soil, crop, and weather conditions. Over the years, the platform has grown into a widely used service that not only provides products but also offers agricultural advice in local languages, bringing a practical layer of digital support to farmers who often feel left out of formal information networks.
Expansion into New Avenues and Global Markets
AgroStar operates in about 11 Indian states, including agriculturally significant regions such as Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, and Uttar Pradesh. As of now, its digital platform and advisory services reach more than nine million farmers.
In 2022, the company expanded its scope by acquiring INI Farms, a fruits and vegetables export firm. This acquisition allowed AgroStar to offer a more integrated solution—from planting guidance to global market access. Today, AgroStar facilitates the sale of Indian produce in over 25 countries, providing smallholder farmers a chance to participate in international trade, something that was previously out of reach for most of them. This move signaled a broader ambition: not just to support input procurement and cultivation, but also to play a meaningful role in the post-harvest value chain.
Facing Financial Hurdles Amidst Growth
While AgroStar’s growth story has been notable, it has not been without its challenges. In FY22, the company reported an operating revenue of ₹260 crore, an 88% jump from the previous year. However, its net loss also widened during the same period, increasing from ₹75 crore in FY21 to ₹142 crore in FY22. These numbers underscore the tension between rapid expansion and long-term financial sustainability—a common dilemma in the startup world, especially in sectors like agriculture, where returns are often slower and market dynamics are unpredictable.
The company has not yet filed its financials for FY23 and beyond, so its recent performance remains unclear. However, the latest round of funding suggests that investors remain cautiously optimistic about the company’s potential to stabilize and expand further.
Also Read: AgroStar Teams Up with Biorizon Biotech to Enhance Crop Health for Indian Farmers
A Growing Sector with Diverse Players
AgroStar’s journey is part of a larger trend in India’s agricultural technology sector. Startups are increasingly stepping in to bridge gaps left by traditional systems, whether through soil testing, crop monitoring, logistics, or export facilitation.
Recent funding activity in the space reflects growing investor interest. Just last month, another agritech startup, MapMyCrop, secured $1.8 million in funding led by YourNest Venture Capital. Around the same time, Grow Indigo, which works on climate-resilient farming solutions, raised $10 million from the UK government-backed British International Investment (BII).
AgroStar competes with firms like DeHaat and Ninjacart, both of which also aim to streamline agricultural supply chains and provide data-driven services to farmers. This competition is not just about market share—it also reflects differing visions for how to make Indian agriculture more sustainable, efficient, and equitable.
Staying Rooted While Reaching Further
With the fresh infusion of capital, AgroStar is likely to continue investing in its core platform, expanding its digital advisory services, and enhancing its supply chain capabilities. While financial pressures remain, the company’s sustained support from seasoned investors may offer it the runway needed to focus on long-term value creation.
At its heart, AgroStar’s work is centered on the day-to-day realities of Indian farmers—navigating unpredictable weather, rising input costs, and fluctuating market prices. The company’s journey so far suggests a commitment to staying close to those realities, using technology not as a buzzword, but as a tool to make farming a little more informed and a little less risky.
