Opportunity Snapshot
- Country: India
- Industry: Agriculture
- Stage: Start-up
- Investment size: $1,000,000 / min. $250,000
Investment Opportunity
A project for Agri Infrastructure and Collateral Management:
Aim of the project is to invest in Agri infrastructure storage systems which appear to be poor in the region while crop production is high; To create best in class warehouses where farmer scan store post-harvest to get WR as collateral.
Startup fund needed: USD 250,000.
Project Overview:
The idea is to start a project to help farmers deliver quality products to their customers. Through efficient post-harvest management operations, the project will deliver value to all stakeholders across the agriculture value chain.
Our Project is to invest initially in world class warehousing, logistics, commodity testing labs, rural retailing and collateral management which will ensure complete food supply chain from farm to the commercial buyers & processors and immense benefit for farmers and investors.
The benefit will come by eliminating middle men and preventing the farmer to sell his produce to through away prices during harvesting season. All these processes will be backed with strong IT system and quality audit processes.
Payback period would be 4-5 yrs and ROI won’t be less than 40%.
Presently, we are awaiting a confirmed VC and fund flow to kick off the project, and site scouting has already been done.
Rationale for the deal
The proposal is to enjoy the benefits of the unorganized sector of agri-commodity storage where farmers tend to sell their produce at distressed price due to non-availability of moderate to world class storage systems and logistics support. We will invest in creating warehouses in strategic locations with logistics facilities which will be approved by Banks. Farmers will be able to store their agricultural produce and take a warehouse receipt (WR) which can be used as collateral for getting loans from the banks. Apart from this we also plan to invest in Commodity Testing Labs and Rural Retailing.
There is immense scope of opportunities in this field since in India 25- 30% of the agricultural produce gets wasted due to the poor infrastructure and the agri-infrastructure field is rather unorganized.
Looking for similar investment opportunities