Skip to main content

Deal Alert: Acumen Fund invests Rs.9-Cr in agri services firm Basix Krishi

Acumen Fund, a pioneering nonprofit global venture firm addressing poverty in South Asia and across Africa, today announced an equity investment of INR 9 crores (~$2M) in BASIX Krishi Samruddhi Limited (BASIX Krishi).

BASIX Krishi delivers productivity enhancing extension services—such as soil testing, seed treatment, vermicomposting, pest management and good harvesting practices for crop farmers; and livestock vaccination, para-vet services, fodder demonstration and milk market linkages for dairy farmers. The company provides this service to its customers through a network of trained Livelihood Service Providers who visit each customer at least twice per month. Incorporated as a public limited company in April 2010, BASIX Krishi is part of the BASIX Social Enterprise Group promoted by Vijay Mahajan, an accomplished social entrepreneur who is considered a pioneer in the areas of financial inclusion and rural livelihood promotion.

“The BASIX Krishi model can increase smallholder farmer incomes by an estimated 30% through a combination of improved productivity and reduced input costs,” said Siddharth Tata, Acumen Fund’s Agriculture Portfolio Manager. “In addition to helping improve farmer livelihoods, this investment allows us to build on our knowledge base in the agri-inputs sector, providing valuable insights into how smallholder farmers make decisions on improving their farm productivity.”

Of the more than 100 million farms operating in India, nearly 85% are managed by smallholder farmers with less than two hectares of land. Most of these farmers have no access to quality extension services, making it very hard to access simple tools and engage in practices that help improve farm productivity.

“Acumen Fund’s investment will help us scale BASIX Krishi’s activities to 67 branches serving nearly 350,000 farmer customers over the next two years,” said Arijit Dutta, CEO, BASIX Krishi. “Through our model, farmers receive personal visits from trained extension workers who support their productivity needs and provide on-call assistance for any questions or emergencies. Eventually, we envision a world in which all smallholder farmers have access to agricultural extension services that empower them to improve their own lives.”

For additional information on Acumen Fund India and its investment in Basix Krishi or in the Agriculture sector, please visit www.acumenfund.org or contact Molly Alexander at malexander@acumenfund.org

About Acumen Fund
Acumen Fund is working to create a world beyond poverty by investing in social enterprises, emerging leaders and breakthrough ideas. We invest patient capital in business models that deliver critical goods and services to the world’s poor, improving the lives of millions. Since 2001, Acumen Fund has globally invested more than $75 million in 65 companies. In India, we have approved and invested over $30 million in 24 enterprises that have provided over 10 million low-income individuals access to water, health, energy, and agricultural services. We are also working to build a global community of emerging leaders that believe in creating a more inclusive world through the tools of both business and philanthropy. Please visit www.acumenfund.org for more information.

About BASIX Krishi
BASIX Krishi Samruddhi Ltd (Basix Krishi) is a BASIX Group company, and was incorporated in April 2010. Basix Krishi trains and employs a network of Livelihood Service Providers (LSPs) who provide services that enhance farmers’ productivity and reduce the cost of cultivation, thereby increasing farmers’ overall income. The services cover a wide range- vaccination, de-worming, fodder management for livestock and soil testing, vermicomposting, pest management for crops.

Popular posts from this blog

VC Interview: Shailendra Singh of Sequoia Capital India

In a recent interview to Venture Intelligence, Shailendra Singh discussed some of the firm’s newer investments in the early stage segment including in the online payments space, the progress at a few existing portfolio companies and the active role the firm is playing in helping its portfolio companies scale and succeed in India and globally. Prior to joining the firm in 2006, Singh was a strategy consultant at Bain & Company in New York and before that, an entrepreneur in the digital media industry.

Venture Intelligence: How does Sequoia go about identifying potential early stage investments in India? Is there anything different you are doing today than, say, a couple of years back?

Shailendra Singh: There is a lot more focus on technology investing and early stage investing. In general, as you might remember a few years ago, we were doing primarily growth investing but in the past 18-odd months, we have had a very strong focus on early stage and that’s continuing. In terms of how…

KPMG Tops League Table for Financial Advisor to Private Equity Transactions in H1 2018

The transaction advisory unit of KPMG claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals in the first half of 2018, advising deals worth $1.7 Billion. KPMG acted as the financial advisor to NHAI in the $1.5 Billion investment by Macquarie to operate 9 highway projects under the toll-operate-transfer (TOT) model. Ernst &  Young (which advised the $730 million asset sale by Indiabulls Real Estate to Blackstone) and Kotak (which advised the Vishal Megamart - Partners Group deal) accounted for the second and third spots respectively.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Arpwood Capital (which advised the $760 million investment by Temasek in the $2.1 Billion Schneider Electric buyout of L&;T Electrical and Automation business) …

"Leveraged stock purchase led Arvind Rao to go astray": Forbes India

Forbes India has an article on the series of events leading to the recent controversial exit of Arvind Rao, Co-founder & CEO of listed Mobile VAS firm OnMobile.

On November 23, 2010, Arvind Rao, the 53-year-old co-founder and CEO of OnMobile, bought approximately 6 lakh shares of his company from the open market, representing a little over 1 percent of the company’s total shares....At Rs 277 a share, he had to pony up nearly Rs 16.5 crore to acquire them....So he went ahead and borrowed money to buy the shares, thinking nothing of the interest it entailed or the fact that he’d need to put up nearly half his existing shareholding as collateral...OnMobile’s shares continued to fall from those levels, while Rao’s interest payments ballooned.

...Motivated by OnMobile’s growth all these years, he had never paid much attention to his salary, most of which went towards the monthly rental on his sea-facing apartment in Mumbai and his BMW 7-Series, both paid directly by the company. He reque…