Bangalore: iStar, a Bangalore headquartered vocational training startup has procured an undisclosed amount in funding from Unitus Seed Fund. The company plans to utilize the procured funds to expand its operations to tier 1 and tier 2 cities of the country, reports ET.

Founded and incorporated in 2009, iStar first started its iLab program in December 2011 with three hundred students and has increased its number ever since its inception, roughly training 2,500 students in Bangalore across six colleges. A majority of the students who attend the program come from low income families.   

According to Surga Thilakan co-founder of iStar, there are about sixteen million students enrolled in University Grants Commission, among them four million graduating every year.  But over 80 percent of them do not fit in the jobs and need to be re-skilled.

Apparently, the exact investment has not been disclosed, assuming the average transaction ticket size for Unitus Seed, the funding amount is between 27 lakh and 54 lakh.

Apart from iStar, Unitus has also previously invested in Milaap, Bodhicrew , Hippocampus and Villgro Stores. In the same line, Click2Skill recently had raised angel funding. SkillKindle for their expansion raised its investment from i3.

The last 12 months in India, there has been increase of investments from risk capital managers on Small startups. Venture capitalists are backing vary of new businesses and sectors involving education, healthcare and mobile application ventures.