India: Origo Commodities raises $11m from impact investor Oikocredit, others

agricultural venture
Agricultural paddy

Origo Commodities, which provides post-harvest agriculture supply chain financing and logistics solutions, has raised Rs 80 crore ($11 million) in funding from impact investors Oikocredit, Caspian SME Impact Fund IV and Triodos Investment Management through its Hivos-Triodos Fund.

Founded in 2010, Origo Commodities provides solutions for supply chain and financing for all participants in the agriculture post-harvest, including farmers, traders, processors, bulk buyers, warehouse owners and financial institutions. It is currently present in 12 states across India, with assets under management worth Rs. 8,000 crore.

Origo Finance, a subsidiary of Origo, offers lending products including warehouse receipt finance, procurement finance and MSME finance. Origo Finance has about 18 branches in Andhra Pradesh, Telangana, Maharashtra and Karnataka with around 3500+ clients including 1400+ farmers.

“We see Origo playing a key role in providing end-to-end solutions for buyers and sellers at every stage of the commodity supply chain. The company by way of providing professional warehouse and collateral management services is working in the direction of augmenting the incomes of farmers and at the same time preventing the significant storage loss of grains,” Ravi Narasimham, investment director at Caspian, said.

Caspian has invested debt and equity capital in enterprises in India, with the intent to generate social and/or environmental impact alongside a competitive financial return. Their focus areas include financial inclusion, food & agriculture, affordable housing, healthcare and clean energy. Oikocredit finances over 700 partners in over 70 countries, with total outstanding capital of €980 million as at 30 June 2018.

Mayank Dhanuka and Sunoor Kaul, co-founders, of Origo said, in a statement, “We look forward to leveraging our investors’ experience to further Origo’s growth to strengthen our product and our reach to people in need of financing and logistics solutions.”

Unitus Capital acted as the exclusive financial advisor for the transaction.