Farmer led-Sahyadri Farms Post Harvest Care ushered in new foreign impact investors to its cap table as it raised Rs 390 crore (approximately $46 million) as part of its second round of funding.
Europe-based private equity fund responsAbility and US-based PE fund GEF Capital Partners have invested Rs 390 crore in Sahyadri Farms’ Series B round along with the existing investors - FMO, Proparco, Incofin and Korys, the company said in a press release Friday.
Ambit Capital acted as the adviser to the deal.
Last month, VCCircle had reported that it was in the advanced stages of raising funds as part of its Series B round which could see an addition of two new foreign investors.
The company, which is the largest exporter of table grapes from India with a 71% share, will use the funds to expand climate resilient patented varieties of table grapes and its citrus produce.
It will also use the funds to boost its packhouse and processing facilities for fruits, vegetables, juice concentrates, dry fruits, freeze-dried food products, aseptic food processing and IQF (individually quick freezing) processing.
Sahyadri Farms Post Harvest Care currently counts Tesco, Edeka, Hindustan Unilever Ltd and Coca-Cola among its clients, it said in the statement.
Nashik-based Sahyadri Farms, established in 2011, procures, processes, and markets fruits and vegetables across 41,000 acres from its farm collective network. Its collective includes over 26,000 small and marginal farmers.
Chairman and managing director Vilas Shinde also hinted at initial public offer going ahead.
“We welcome our new investors, responsAbility and GEF, on this journey to transform Indian agriculture. We are excited to work towards IPO in the coming years and become first farmer-owned organization to be listed in India."
In 2023-24, consolidated net revenue stood at Rs 1,468.5 crore. According to figures provided by the company to VCCircle, EBIDTA grew 88% to Rs 170 crore in FY24, while net profit jumped manifold to Rs 72.6 crore.
Sahyadri Farms Post Harvest Care’s parent company, Sahyadri Farmers Producer Company Ltd, began operations in 2011 with exports of farmer-sourced grapes.
In 2022, Sahyadri Farms took over its parent's post-harvest business. The same year, it raised Rs 310 crore in its Series A round led by European development financial institutions such as Proparco, FMO and Incofin, and Korys, the family office of the Belgium-based Colruyt Group.
The company has diversified into other crops over the years. Today, it is present across the food value chain from seed to plate through farm-level interventions, food processing, distribution, retailing and exports of fruits and vegetables.
Sahyadri Farms and its subsidiaries procure, process, and market fruits and vegetables across 41,000 acres from its network of over 26,000 small and marginal farmers. The main crops that the firm sources include grapes, tomatoes, citrus, mango, sweet corn, banana, pomegranate and cashew.