IFC to soon invest in Nexus Venture supported Agrex, an organic food company

IFC to soon invest in Nexus Venture supported Agrex, an organic food company

The investment arm of World Bank for the private sector, International Finance Corporation is intending to invest up to $25 Million (Rs 160.7 Crore) in Agrex Ltd., which is an organic food company based in Dubai.

The organic food company will utilize the funding for building up a green field processing facility in Ethiopia, Uganda, Sri Lanka, and the Philippines, stated by the company.

IFC to soon invest in Nexus Venture supported Agrex, an organic food company

The company will utilize the funds for constructing Greenfield processing facilities in the Philippines, Sri Lanka, Ethiopia, and Uganda. The total estimated cost of the project is anticipated to $35 Million, while the remaining amount will be recovered through equity infusion of $5 Million from other investors and other $5 Million through debts from financial institutions, cash, and internal accruals.

Agrex, founded in 2012, is affianced in procuring, processing, and exporting certified organic products from regions Africa and Asia. The founder of the company, Sameer Mehra has a share of 45% stake, while the rest of the 55% is owned by Nexus Venture Partners, a venture capital firm and Capricorn Investment Group, which is an alternative asset management firm.

The operational assets of the company comprise fully owned sesame seed sorting and cleaning facility in Uganda and leased coconut oil processing facility in the Philippines. It has third-party manufacturing contract for sesame and soybean warehouse and processing plant in Ethiopia. It is also functioning with textile manufacturers that are the third party for operating its organic-based clothing business.

Agrex also works with individual farmers and their groups and has made organic farming provision in the Philippines, Ethiopia, and Uganda. The totality of farms is spread across 35,000 Hectares in these three nations.

No part of the total land is based on lease and owned by the company. It sources the organically produced products from the farmers. It has also presented an offer to pour $20 Million in Suminter India Organics Pvt. Ltd., an organic food exporter.

Both the companies Agrex and Suminter India Organics are started by a single man, Sameer Mehra and Capricorn Investment Group and Nexus Venture Partners are common investors in both the organizations.

The investment arm of World Bank has made ample of investment in the agri-based business. In June this year, it presented a proposal to invest in a food-grain milling factory of Agrocorp International Pte. Ltd. Moreover, It also made an investment of $30 Million in ETC Agro Processing (India) Pvt. Ltd. in form of debt funding.

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