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