Switzerland and India-based agriculture sector-focused accelerator Pioneering Ventures has floated a $70-million private equity fund to provide growth capital exclusively to its existing ventures, The Economic Times reported.
The Rural India Impact Fund, which went live recently, is planning to raise the aforesaid amount over the next two years. The firm will use the entire proceeds to support the five companies – Desai Fruits & Vegetables, Citrus International, FarmLink, MilkLane and Samaaru – it has incubated so far.
The limited partners in the new fund include European high networth individuals and family funds who have invested into these five businesses alongside Pioneering Ventures.
The fund was necessary as four of the companies were now ready for their next stage of growth, the report added. Pioneering Venture also expects to triple the revenues of the five companies to $300 million over the next two years from about $100 million this year.
Across its five businesses, the fund employs 500 people in the country and aims to reach one million farmers, enabling them to grow higher quality produce while also enabling them to sell directly to realise better returns.
On its website, the company says it is in the process of building India’s most comprehensive agri-food platform consisting of vertically integrated and technologically supported agri-food businesses. It is committed to create sustainable and verifiable social impact among the farming community and other stakeholders along the value chain.