Indian Agri-focused Lender NAFA Raises $50M Through Equity And ECB

Agriculture-focused non-banking finance company (NBFC) Netafim Agricultural Financing Agency (NAFA) on
Monday said it has raised $50 million through a mix of equity capital and external commercial borrowing from Israel
based – Phoenix Group and Cogito Capital.

 Funds raised will be utilized for business expansion, enhanced offerings, and to expand horizons in the agri-rural
domain and to improve its margins as it intends to service the high-cost old debt and bring down the overall cost of
funds, the company said in a statement.

 Apart from Phoenix group and Cogito Capital, it recently raised $9.4 million of Tier I Capital from its parent, Netafim
Singapore and offered exit to the initial equity partners Atmaram Properties & Granite Hill Fund as they had reached
their investment horizon, it said.

 According to Prabhat Chaturvedi, CEO, Netafim Agricultural Financing Agency Pvt. Ltd, there is a need for diversified
credit schemes, along with adequate hand holding, to provide financial guidance to farmers on investing in
agriculture and allied activities.

 “Indian agriculture, in general, is characterized by low and uncertain returns as they are more prone to natural
calamities and varied risks, resulting in constant demand for agri-financing support. The advent of intensive and
climate-resilient agricultural technologies has further amplified the need for good financing schemes. Despite thepresence of multiple financial mediums, there aren’t enough credit products catering to the niche demands of the
farmers, leading to a huge credit gap,” he added.

 The lender acquired NBFC license from RBI in 2013. NAFA has established its presence in eight states and disbursed
total loans above 1000 crore to more than 10,000 customers.

South Africa Today

Read more at VolaNews

Source link