The Food and Agriculture Fund (IFAF) will invest about $8 Mn in about 12-14 sub-segments companies and will take up a minority stake. Also, the fund is looking to raise more funds in future. “We are predominantly looking at sub-sectors such as seeds, biologicals and food that is nutrition-based,” said Venu Gopal Chintada, a partner at Sathguru’s fund management firm Sathguru Catalyser Advisors. He further added, “We are right now looking at $100 Mn. However, there is a green-shoe option of $25 Mn.”
Venu Gopal Chintada said, “We want to bring in techno-commercial expertise. We are focussing on established businesses that have already created channel partners and developed product on a commercial level. From that stage, if they struggle to move up to the full-fledged growth stage, that is where we want to come in.”
Vijayaraghavan K, A Krishna Kumar, Prabhu C, and Venu Gopal Chintada will head the IFAF. The fund intends to invest in early commercial stage companies.
Sathguru is actively engaged in policy advisory and is involved in the evolving innovation ecosystem. Currently, it has offices in India, Bangladesh, and the US and a network of partner offices in several other countries.
Other than Sathguru, investment firms who focus on the food and agri space include Omnivore Capital. The firm is also raising its second India-focused fund which has a target corpus of $75 Mn.
In the recent development, Micromax is also setting up an independent fund to invest in consumer Internet companies worldwide. The fund is expected to raise about $100 Mn.