International Finance Corporation to soon invest $20 Million in Suminter India Organics Pvt. Ltd
The organic food exporter Suminter India Organics Pvt. Ltd. is set to receive a funding of 20 Million (Rs 128 Crore) from the private sector investment arm of World Bank, International Finance Corporation. The deal will be closed based on an equity stake.
Suminter will utilize the funding for expanding its operational requirements in states such as Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, Maharashtra, and Odisha. The funding will also help the company to advance its present processing facilities in Madhya Pradesh.
As per the valuation, the overall cost of the projects goes around $25 Million. The remaining $5 Million will be extracted via additional equity, existing cash, debt from financial institutions and internal accruals. The proposal of investment will be placed in front of IFC’s board on 16 October.
The investor has a direct and indirect coverage of Indian entities. It majorly plays a role of limited partner to local venture capital and private equity firms.
Suminter, which was founded in 2004, is betrothed in the methodology of sourcing, processing, and export of certified organic products. About 45% stake of the company is owned by the company’s founder Sameer Mehra with his family. The rest of 55% is owned by Capricorn Investment Group, an alternative asset management firm and venture capital firm Nexus Venture Partners. It was also reported that in June, Suminter recruited an investment banker for the fresh funding of $50–100 Million.
The company received its first funding in December 2007 that was of $3 Million from Nexus Venture Partners. Thus, two years later, it again raised $5.98 Million funding, which was led by Skoll Foundation and Nexus Capricorn Investment Group in the second round.
Till date, Nexus has poured $5.98 Million as well as Skoll and Capricorn Foundation jointly invested $8.5 Million in the company.
The organic exporter reported revenue figures of Rs 339 Crore in the fiscal year 2015–2016, which witnessed a rise of 34% from Rs 253 Crore as compared to the previous year. The net profit got tripled from 4.3 Crore and Rs 14.48 Crore.
The investors have proposed various investments in the agribusiness sector. It has placed its proposal for Agrocorp International Pte Ltd., which is an agri-commodity trading. It also proposed to make $30 Million in the form of debt investment in ETC Agro Processing (India) Pvt. Ltd. IFC had also previously intended to pour $175 Million in Olam International Ltd., a Singapore-based commodities merchant to back its projects in Nigeria and India.