Chennai, NFAPost: Agritech supply chain and trade finance company, Origo, has received a fresh round of debt funding from capital investment firm Northern Arc Capital, and others.
Origo provides end-to-end agriculture supply-chain solutions such as procurement, storage, and financing. Through the debt funding the commodities arm Origo Commodities, and the finance arm Origo Finance, will be able to carry out the intended plans of securitising the agricultural markets and streamlining the supply chains mechanism for agri produce in India.
Origo Commodities India (OCI) has raised Rs 15 crore from Northern Arc as an investment dealing to expand its Trade Finance, while Origo Finance raised Rs 20 crore for development of micro lending avenues and agri supply chain financing.
Prior to the funding announcement, Origo had already concluded a securitised transaction through the purchase of maize from the state of Bihar, worth Rs 7 crore. The investments will be instrumental in achieving Origo’s target of achieving Rs 100 crore in transactions for the current fiscal year.
Including the securitisation transaction, Origo plans to increase its trade finance volumes to Rs 400 crore this fiscal year. Furthermore, the funding boost received by Origo will help them improve agri processes, warehousing, and accessibility to lakhs of Indian farmers who are in dire need of tech-enabled services in the country.
Origo, through Origo Commodities and Origo Finance has been focused on agriculture supply chain and micro lending, helping build a robust framework that brings sellers, buyers, lenders, warehouse owners on a common platform. The financing will aim towards strengthening that network and also help rural entrepreneurs rejuvenate their businesses in challenging times such as the pandemic. Origo’s endeavour has been to support the community it works in, and through its different arms it connects with various aspects of the rural economy.
Additionally, the funds will be utilizsd to achieve Origo’s mission of delivering produce through sustainable processes, eliminating losses from the agricultural value chain after harvests. Origo’s thinking is in line with climate conscious decision making, in a bid to minimise food wastage, quality and security.
Origo has managed 25 million tonnes of commodities, reducing food grain wastage of 3 million tonnes, which has brought down CO2 emissions by 2.3 mega tonnes. The infusion of capital will be instrumental in empowering all stakeholders to collectively adopt sustainable approaches, further reducing the carbon footprint.
Origo Commodities Co-founder Sunoor Kaul said, “Our partners including Northern Arc Capital have been of great support over the years to Origo’s visions of building a strong ecosystem in the agriculture supply chains.”
“Through the support of Northern Arc and other financial partners, we aim to serve the agri ecosystem by providing solutions that can take care of all commodity needs for procurement, financing and warehousing. Our trade partners see value in consolidated services that we provide, and we hope to grow to the extent of making commodity supply chains highly efficient,” he added.
Northern Arc Capital Managing Director and Chief Executive Officer Kshama Fernandes said, “We have been working with Origo Commodities for over five years and are excited to have played an important role in supporting their mission to build a robust commodity supply chain which can benefit farmers, FPOs and processors. The efficiency from their solutions can have a positive impact on the entire agri supply chain ecosystem in the long run.”
