Origo Commodities, an agri-fintech startup, will raise $20 million (145 crores) in debt financing from the US International Development Finance Corporation (DFC), the US government’s development finance organization. The guarantee is part of DFC’s commitment to invest in projects that assist grow agricultural enterprises, strengthen value chains to decrease food waste, build vital food processing and storage facilities, and enable countries to expand food exports. The loan is disbursed through a local bank. Through DFC, the bank will be able to provide around Rs.145 crore loan to Origo. The structure is essential because it allows Origo to mobilize local capital and reduces the risk of foreign currency rate fluctuations on its balance sheet.
One of the leading Agri Fin-tech company, Origo is specialized in commodity supply chain management, finance, and trade. It was founded in 2011 with the goal of providing end-to-end post-harvest management services. The company has a strong base for all stakeholders to offer smooth commodity business, resulting in a strong agricultural economy and long-term development. It is currently present in 12 different states in the country with more than 1000 dedicated professionals.
Origo promises to help farmers and traders with procurement, warehousing, and trade finance. They would use the new funds to expand capacity with small and medium-sized agro producers and merchants, assisting them in overcoming the hurdles posed by the COVID-19 pandemic. Origo is also planning to engage with SMEs to help them increase their volumes by offering procurement support and finance. The company intends to allow better price discovery and smooth commodities trading by leveraging its digital trade and finance platform, E-mandi. The platform facilitates online commodities trading, allowing customers to benefit from better procurement, price, and financing.
The Co-Founder, Sunoor Kaul, said that with our agri-fintech platform, they want to boost the efficiency of the Indian agricultural commodity sector. He also added that they would utilize the funds to strengthen the industry that got affected due to the pandemic and want to ensure that it realizes its true potential.
Origo‘s trade finance had increased from 100 crores in 2019-20 to 180 crores in 2020-21. It has set a target of increasing it to 600 crores for the fiscal year, with 130 crores already accomplished throughout the first quarter. The E-Mandi platform will also allow for a non-funded trade of 350 crores.