Appachi Eco-Logic Cotton Private Limited, a farm to fashion social enterprise with activities from organic cotton farming to garment production, has raised an undisclosed amount from the US-based not-for-profit venture capital firm Grassroots Business Fund to ramp up its operations and also expand its market presence globally.
Founded in 2009 by Mani Chinnaswamy and his wife Vijayalakshmi, Appachi Eco-Logic Cotton is an organic cotton contract farming company currently executing projects in the Western Ghats region of Kabini Reservoir.
Appachi Cotton is known to produce organic Suvin, a long staple cotton and long to medium staple cotton, DCH32, which are sold across the world and also further processed for converting into ethnic wears that are sold under the Ethicus brand.
The company is said to have integrated around 1200 farmers (with about 2000 acres) into organic cotton project in the fragile and ecologically endangered region of Kabini in Karnataka and spun this cotton into ethnic and exquisite wears (sarees, stoles and fabric). The garments are exhibited at select high-end design stores.
Established in 2008, Grassroots Business Fund from Washington, D.C. is a non-profit venture capital firm which provides equity, quasi-equity and debt capital to companies operating in Asia, Africa and Latin American countries.
The firm invests in technology, agriculture, clean energy and consumer durable sectors while its funding typically ranges between $0.25 million and $1 million in equity and $0.04 million and $0.15 million in debt in its portfolio companies.
Mumbai-based boutique investment banking firm, Think Capital Private Limited acted as an exclusive financial advisor to Appachi Cotton for the transaction.
(Edited by Joby Puthuparampil Johnson)