Siddhivinayak Agri Processing Pvt Ltd, a Pune-based potato supply chain management company that operates as SV Agri, has raised an undisclosed amount in a Series B round of funding led by impact venture capital firm Lok Capital.
The deal marked Lok Capital’s first investment in the agriculture sector. Existing investor Aspada Investment Company also participated in this round.
The company will use the money to expand its procurement operations and scale up the production of its own brand of potato seeds. A part of the fund will also go towards team building and enhancing its technology platform.
“SV Agri will use the investment to expand its presence in the potato seeds/tuber markets and potato processing equipment by expanding the range of solutions offered and take lead in creating innovative products that go beyond chips,” said Hemant Gaur, co-founder of the firm.
Founded in 2009 by Gaur and Ganesh Pawar, SV Agri is an integrated agri supply chain player providing a range of pre- and post-harvest solutions to potato farmers and processors.
“We are excited about the partnership with SV Agri and believe its business model is creating significant value for all stakeholders in the potato value chain,” Rajesh Babu, director at Lok Advisory Services, said.
Lok Capital, which manages two funds with a total corpus of over $85 million, had in the past invested in companies like Ujjivan, BASIX, Janalakshmi, Ashirwad, Vistaar, Suryoday, RuralShores Business Services Ltd and Satin Creditcare Network Ltd. Of these, it had exited its investments in three firms—Satin Creditcare, Janalakshmi and RuralShores.
SV Agri said it has a network of over 100 franchisees which provide farmers with quality seeds and other important inputs. Besides, it also facilitates credit, imparts knowledge on improved farming practices and provides market links for sale of the final produce.
“Having tracked the growth and performance of the firm for the last few years, we believe that SV Agri shall set the benchmark for organising the fragmented agri-supply chains,” said Kushal Agrawal, CFO of Aspada.
SV Agri had raised its Series A round of funding in 2011 from SONG, a fund backed by Soros Economic Development Fund, Omidyar Network and Google, which is also managed by Aspada Investment Company.