Agritech firm Origo Commodities India, known for its end-to-end agriculture supply-chain and financing solutions, has raised Rs 35 crore (about $4.73 million) debt from Northern Arc Capital and other investors.
A part of the funding, about $2.02 million, has been raised by its commodities arm to expand trade finance, while the rest has been secured by its subsidiary Origo Finance for the development of microlending avenues and agriculture supply chain financing, according to a statement.
This, the company said, would allow the two units to improve agricultural processes, warehousing, and finance accessibility to lakhs of Indian farmers, securitizing the agricultural markets and streamlining the supply chain mechanism for agricultural produce in the country.
Since its launch in 2010, Origo has been developing a robust framework that brings agri sellers, buyers, lenders, and warehouse owners on to a common platform. The company claims to manage assets worth Rs 8,500 crore across 12 states.
The latest funding will strengthen this network and help rural entrepreneurs revive their businesses, the company said, adding that it will also be used to deliver the produce through sustainable processes which will minimize food wastage, prove environment friendly, and eliminate losses.
The company already claims to have managed 25 million tonnes of commodities and reduced food grain wastage of 3 million tonnes, which has brought down CO2 emissions by 2.3 mega tonnes.
“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,” Sunoor Kaul, co-founder of Origo Commodities, said.
Prior to this, the company had raised about $6.8 million in December 2019 from a clutch of investors led by Responsability India Business Advisors.