Agri-logistics firm Leap India has raised INR 164 Cr in Series B funding from Danish SDG Investment Fund and Neev Fund. The Coimbatore-based agricultural warehousing and logistics platform will utilise the funding towards tangible future growth and to transform itself into a robust company that connects the grain supply chain from farm to business.
It also aims to build a large platform of grain storage sites that can help the Food Corporation of India and other private sector players to make warehousing more efficient with the use of technology and modern storage infrastructure.
“SDG Fund’s investment, along with round two of investment from the Neev Fund will allow us to expand and reach a critical size, while, at the same time, team up with strong, foreign institutional investors,” Leap India promoters were quoted as saying by ET.
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The Danish SDG Investment Fund is a fund managed by the Investment Fund for Developing Countries (IFU). “By investing in Leap, we are addressing one of India’s most pressing challenges, namely helping to improve food storage efficiency and reduce undernourishment, while having secured an attractive risk vs. return profile in the deal,” Deepa Hingorani, South Asia VP reportedly said.
While various initiatives have been taken by agri-tech startups and the government towards agricultural production, post-harvest loss of grains is still a big concern. According to Leap India, food grain worth in excess of INR 75K Cr is damaged annually due to poor storage conditions.
“The commonly used storage method at the state level currently is cover and plinth (CAP) storage, which is economical but loss of grains in this method is inevitable as it has very little control on the microclimate and is not an efficient deterrent to pests and spoilage due to moisture,” the company says, as it aims to modernise traditional storage systems.
“We welcome the Danish SDG Investment Fund as a partner and co-investor in Leap India. This fructifies our fidelity to the Sustainable Development Goals of poverty alleviation by doubling farmer income through food security in India,” Manav Bansal, CIO, Neev Fund said.
In April 2018, Leap India raised $10 Mn in equity funding from Neev Fund, a co-investment platform backed by UK’s Department for International Development and the State Bank of India.