CDC Group, the UK’s development finance institution and Impact Investor, has announced a US $14 million debt commitment to Leap India Food and Logistics Private Limited (“Leap India”). The investment which comes under CDC’s climate finance strategy, will support Leap in constructing modern agri-silos which will help improve food security and support rural economic opportunities in India.
With a twofold mission to connect the grain supply chain from farm to business, and to transform itself into a robust agri-Silos and Logistics platform, Leap India will utilise the investment from CDC in building two agri-silos for handling and storage of food grains on a build-own-operate basis in low-income states. Each of the two modern agri-silos will help reduce food loss by saving six per cent of grain which is often lost due to poor storage. Additionally, each silo will support the distribution of subsidised grain for 800, 000 people from low-income households, and also provide more efficient supply chain linkages for approximately 30,000 farmers.
The investment in Leap India – which was founded with a vision to support the Government of India (GoI) in implementing the National Food Safety Act, 2013 – will help ensure better grain storage infrastructure, increase access to subsidised grains and thereby promote food security in India.
Srini Nagarajan, Managing Director and Head of Asia at CDC, said, “CDC is pleased to be investing in Leap India, and partnered on a joint ambition to help address food security challenges, which are intensified by climate change. As a DFI, we understand the integral role that the Food & Agriculture sector plays in ensuring good health, wellbeing, and long-term development across society.
As such, our investment is aimed at bolstering Leap India’s handling and storage capacity, helping to reduce food loss, and ensuring that the nutritional needs of low-income household are met. Moreover, we hope that our investment in the nascent Agri-silo sector will have a demonstration effect in the market and attract greater funding to similar projects over the next 5 years. Through this commitment, our goal is to help scale responsible businesses that are creating climate mitigating solutions that will ensure communities are fed, economic opportunities increase, while amplifying long-term inclusive development in India.”
Mr. Anurag Malempati, Founder, Leap India said, “At Leap, our aim is to build a large platform of grain storage sites, which can help FCI and the private sector make grain storage more efficient with the use of technology and modern storage infrastructure. We support and work towards achieving the 2nd goal of the Sustainable Development Goals which focuses on ending hunger, achieving food security, and improving nutrition and promoting sustainable agriculture by 2030. CDC’s debt investment along with the previously raised equity investments from IFU (A Danish Sovereign Wealth Fund) and Neev Fund (backed by the UK FCDO and SBI), will allow us to expand and reach a critical size, while, at the same time, team up with strong, foreign institutional investors. As India and UK launch new initiatives at the current COP26 summit, we believe it is a great match with the timing just right to support the climate initiative. We look forward to taking Leap to the next level, together with our investors”
About Leap India Food & Logistics
Leap India Food and Logistics (P) Ltd. was founded in 2017 by Rajeev Karthikeyan, Anurag Malempati and Nikhila Karthikeyan and is headquartered in Coimbatore, Tamil Nadu.
It is one of the leading agricultural warehousing and logistics companies in India. Leap India is engaged in the development of Food storage Silo terminals and logistics Infrastructure for the Private sector and the Food Corporation of India (FCI). It is currently developing 9 locations for 700 Cr for the Food Corporation of India under PPP Mode, and PFT in Vadodara.
In 2020, IFU and Neev participated in the Series B round of funding taking the total Equity invested to INR 200 Crores.
The funding provided by CDC will fast-track Leap India to bigger and better avenues of the food and logistics business. During this round of funding, Leap India was assisted by full-service law firm, Algo Legal while CDC was assisted by full-service law firm, J. Sagar Associates.
For further information, please contact:
CDC Group: Toyosi Adebayo | press@bii.co.uk
