New Delhi, Oct 6: Agri-fintech company Origo Commodities on Wednesday said it will raise USD 20 million (Rs 145 crore) from US International Development Finance Corporation (DFC).
The Gurugram-based said the company will utilise the fresh capital to build up capacity with agri producers and traders in the small and medium category.
“Origo Commodities will raise a debt funding of USD 20 million (Rs 145 crore) from the US government’s development finance institution, US International Development Finance Corporation (DFC),” the company said in a statement.
Origo aims to provide procurement, warehousing support and trade finance to farmers and traders. It will also work with the SMEs by providing them procurement support and financing to scale their volumes.
Leveraging its digital trade and finance platform, E-mandi, Origo plans to facilitate better price discovery and seamless commodities trading. The platform enables a 100 per cent secure online commodity trade that allows users to have better procurement, better pricing and better financing.
Despite the COVID-19 pandemic, Origo’s business model has allowed it to increase the trade finance from Rs 100 crore in FY’20 to Rs 180 crore in FY’21.
The company said it is now in track to achieve Rs 600 crore in FY’22 with Rs 130 crore already achieved in the first quarter.
“The loan will be deployed through a local bank. The DFC guaranty will enable the bank to provide around Rs 145 crore loan to Origo. The structure is significant as it helps in mobilising local capital for Origo, and eliminates foreign exchange rate fluctuation risk from its balance sheet,” the statement said.
US International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today.
Origo’s e-Mandi platform offers digital buy/ sell options to ease procurement, with better pricing and financing. Origo provides trade finance to commodity stakeholders to help build capacity in addition to their conventional financing. (PTI)
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