India-focused early stage investor Unitus Seed Fund has led a Rs 1.2 crore ($180,000) fresh seed funding round in existing portfolio firm, Bangalore-based agri-inputs company VillFarm Agrisolutions Pvt Ltd.

Others who participated in this round included Zurich-based Rianta Capital, angel investor and Sify founder R Ramaraj and a group of non-resident impact and angel investors represented by Sunil Edwards.

The company (formerly known as Villgro Innovation Marketing) will primarily use the capital to build its product lines and expand distribution across South India.

“There is a large potential to disrupt the agricultural sector by providing superior quality inputs that result in improved yields as well as farming sustainability. We believe that VillFarm is well-poised to develop a market leadership position in this growing segment,” said Dave Richards, managing partner at Unitus Seed Fund.

The company entered into a strategic partnership with Carborundum Universal (CUMI), a Murugappa Group company, to market PUSA Hydrogel, a polymer-based water management product. It will market hydrogels which help conserve water and release it over time, under the label ‘Water Bank’.

“VillFarm is building a trusted brand of reliable, natural agriculture products that enhance farm yields while being safe for the soil and the farmer,” said Sundarraj Mahadevan, CEO of VillFarm.

An alumnus of IIM-Lucknow, Sundarraj along with Jagadeesh C Sunkad, took the responsibility of the new management team last year.

The Chennai-based firm had raised its first seed funding from Unitus and a group of angel investors three years ago.

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