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Samriddhi Investment in Gramco Infratech

In August 2013, Intellecap’s investment banking practice announced the successful closure of Series A funding for Gramco Infratech Private Limited. As sole advisors for this transaction, Intellecap raised INR 15 Cr from the Samriddhi Fund, an impact investor focused on low income states of India.

Gramco, a company based in Indore, aims to improve farmer incomes through improved warehousing infrastructure, better financing solutions and stronger market linkages. It offers a complete bouquet of services to farmers that include storage facilities for agri-commodities, supply of agri-inputs, commodity financing, contract farming/seed production, fully automated handling/cleaning/grading and procurement of agri-commodities.

Gramco, incorporated in 2010, currently owns two multi service agri-warehousing facilities near Indore, and plans to set-up 11 more by FY 2015. It aims to increase the number of farmers served from around 700 to 10,000 by 2015.

Intellecap worked with the senior management of the Company to help evolve their business plan in the rapidly changing agri-commodity supply chain industry. Gramco has been able to devise a growth strategy focused on building the right mix of owned and leased warehouses to support a variety of business verticals. It balances tight operational controls, geographical scale, financing constraints and a commitment to serve customers.

The investor outreach process managed by Intellecap culminated in the deal with Samridhi Fund. The Samridhi Fund was launched as a private sector development programme by Department for International Development (DFID) of UK Government in partnership with Small Industries Development Bank of India (SIDBI). The structured transaction will bring on board an investor who is aligned with the Company’s mission and is cognizant of the challenges that early stage companies face, especially in India’s agribusiness sector.