[Funding alert] Agritech startup Origo raises Rs 75 Cr in debt funding from YES Bank
Gurugram-based Origo Commodities, a leading commodities and rural finance company, on Thursday announced that it has received Rs 75 crore in debt funding from YES Bank.
This debt support from YES Bank will help Origo to deepen its presence in agri supply chain domain and will also help overcome challenges posed by the COVID-19 pandemic, the company stated.
The agritech player intends to use the funds for improving the services and structures within the agricultural ecosystem.
Following the development, Sunoor Kaul, Co-founder, Origo Commodities, said,
“We are delighted to associate with YES Bank, and acknowledge that our association with them will be beneficial to the agri-community. We hope that the funding will revitalise the sector with liquidity, and make the supply chain more efficient. Through securitisation and tech-based solutions, the ambition is to make all stakeholders benefit, while helping realise the true growth potential of our nation.”
Founded in 2010 by IIT Delhi graduate Sunoor Kaul and Mayank Dhanuka, the startup has been focused on two elements – supply chain and financing, to ensure that farmers get a fair price and others involved in this ecosystem get access to legitimate capital.
With 1,800 employees across 12 states, Origo has been able to support the rural ecosystem through agriculture logistics, agriculture supply chain support, and the much-needed finance through last-mile connectivity.
The agritech player also hopes to unlock agri-commodity investments for retail investors in the coming months, which could then bring transparency and establish efficient SOPs within the ecosystem.
Speaking on the investment, Nikhil Sahni, National Head – Government Banking, YES Bank said,
“YES Bank remains steadfast in its endeavour to support the agri sector through financing, advisory and technology support. Agri supply chain has always demanded more formal financing to make it efficient and robust. We believe this partnership with Origo Commodities, will pave the way for enhanced liquidity in the sector and support the entire ecosystem – right from the small holder farmer, all the way to the processing units.”
Earlier in October 2020, the agritech startup had raised Rs 35 crore debt from Northern Arc Capital and other investors.