Lok Capital invests in Siddhivinayak Agri Processing
SV Agri Processing had in 2011 raised Rs 5 crore from SONG, a fund backed by Soros Economic Development Fund, Omidyar Network and Google.
SV Agri Processing had in 2011 raised Rs 5 crore from SONG, a fund backed by Soros Economic Development Fund, Omidyar Network and Google, which is also managed by Aspada Investment Company. According to filings by the company with the ministry of corporate affairs Lok Capital put in Rs 15 crore in October 2015. Lok Capital declined to comment on the funding details.
ET had in May 2015 reported that Lok Capital was looking at investing in the agriculture sector, with a focus on businesses that create value for small and marginal farmers — those with a well-funded, cross-subsidy model.
Rajesh Babu, director, Lok Capital said, “It was the right model in terms of commercial and social impact. We liked the integrated business model and founders have fairly good experience too. We also wanted to play in a commodity that is large.”
Following the fundraising, Aspada’s Chief Financial Officer Kushal Agrawal will now be on the board of SV Agri Processing. “We will use funding to expand our seed business, develop engineering capabilities and get into value-added processing space,” said Hemant Gaur, co-founder of SV Agri Processing. The company has a network of 150 franchisees who sell seeds to over 3,000 farmers across seven states and then buy back harvested potatoes. These are in turn sold to 65 large and small processing companies and wholesalers by SV Agri Processing.