CFO Services & Fundraising Support for Agri-Tech Co

As an agri-tech company, our client’s objective is to aggregate and economically source farm supplies for B2B buyers.
The business model involves reducing inefficiencies in the fragmented food supply chain by enabling select farmers (farmer franchisees) with equipment to process their produce, thereby providing direct market access and logistical support through a technology platform.

THE QUEST FOR SEED MONEY

After successfully setting up an agri-business centre, which helped the client gain traction in the market, they found themselves at a crucial juncture. Right now, fresh capital was required to build on their previous success and to scale the company to a Rs. 500 cr enterprise. The company approached AND to help with the end-to-end fundraising exercise – right from preparation of investor pitch decks to negotiation of term sheets.

FARM TO FINANCIAL MODELS

After a comprehensive understanding of the requirements, AND engaged with the client to help raise equity financing with the following:
  • Educating the founders about the nature and policies of Venture Capital (VC) investors
  • Pivoting the business model from an asset-heavy agri business centre approach to an asset-light farmer franchisee approach
  • Breaking down the business model into crucial components and helping the client in prioritizing the implementation of critical elements
  • Assisting the client in signing MOUs with 4 state governments and successfully pitching at international events
  • Preparation of Project Report and CMA data for lenders
  • Approaching and coordinating with banks for debt syndication
  • Preparation of detailed Info Memo (IM) and financial model for equity investors
  • Conducting initial discussions and deal structuring with potential investors
  • Drafting, negotiation and finalization of term sheet
With our assistance, the client was able to close an angel round funding of Rs. 3 cr and was able to expand their presence with 10 farmer franchisees across 5 districts. The client now supplies to about 50+ B2B buyers. Today, AND is assisting the company in closing its Series A round of funding.

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