Dutch development bank FMO will invest about $15 million in India-based Sahyadri Farms Post Harvest Care Ltd (SFPHCL), as part of a funding round led by Belgium-based Incofin, according to a disclosure seen by DealStreetAsia.
The company will use the funds to expand capacity in its Nashik processing plant, finance a biomass plant and additional collection centres and packhouses, and facilitate the growth of the company’s domestic supply chain.
“Farmers benefit from economies of scale, technology-driven enhancements, and access to global and domestic markets. The financing round is expected to increase the number of farmers supplying to and benefitting from the Sahyadri ecosystem,” FMO said.
Nashik, India-based SFPHCL is a majority-owned subsidiary of Sahyadri Farmer Producer Co Ltd, a farmer-owned Farmer Producer Organisation. It sources produce from more than 15,000 mostly small and medium-sized farmers, who are further supported by the FPO through a farmer facilitation programme.
SFPHCL is currently the largest grapes exporter and tomato processor in India.
Neither Sahyadri nor Incofin immediately responded to a request for comment.
According to Crunchbase, Sahyadri Farms has raised a total of Rs 1.2 billion in funding over one round. This was a private equity round raised on Sep 18, 2019.
Agriculture companies have been seeing a rise in fundraising in recent times. Last month, agritech startup Nutrifresh on Tuesday said it has raised $5 million (Rs 38.8 crore) from investors for expansion and growth.