February 6, 2020

By Lynda Kiernan

Agricultural logistics company Leap India Food Logistics has raised $23 million through a Series B backed by the Danish SDG Investment Fund, and the Neev Fund. This capital brings Leap India’s total funding to-date to $25 million. 

The SDG Investment Fund is a public-private partnership between the Danish government and pension funds to enact social change that is managed by the Investment Fund for Developing Countries (IFU).

Launched in June 2018, the SDG Investment Fund is the result of a partnership between six pension funds: PKA, PensionDanmark, PFA, ATP, JØP/DIP, and PenSam, that together with IFU will act as an innovative solution answering how Denmark can mobilize greater private capital investment in developing countries to meet the UN’s Sustainable Development Goals (UN SDGs) by 2030, and to promote Danish technology and know-how. 

Reflecting a shift in Danish cooperation, the SDG Investment Fund seeks out investment opportunities in companies in Africa, Asia, Latin America, and parts of Europe. These capital commitments are made in cooperation with Danish companies with the technical knowledge and strong competencies aligned with the realization of development goals.

“The potential of the private sector in the developing countries is huge and can result in jobs, education and a better life for many people in some of the poorest countries in the world. I am very happy about the agreement,” said Ulla Tørnæs, Minister for Development Cooperation, upon the launch of the fund. 

This investment is a return to Leap India for Neev Fund, which was established in 2014 through a partnership between the UK’s Department for International Development (DFID) and the State Bank of India. The fund’s main mandate is to create sustainable development that will provide social and/or environmental benefits, with a focus on infrastructure sub-sectors for some of the poorest regions in India: Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odissa, Rajasthan, Uttar Pradesh, and West Bengal. 

Based in Coimbatore, Leap India has a dual purpose – to realize a transition in India from bag storage to bulk grain storage in steel silos connected by railway infrastructure and dedicated corridors for the efficient storage and handling of grain to help Food Corporation of India (FCI) and the private sector, and to realize economic inclusions through the establishment skill development schools and technical knowledge centers to serve local communities. 

“By investing in Leap, we are addressing one of India’s most pressing challenges, namely helping to improve food storage efficiency and reduce undernourishment, while having secured an attractive risk vs. return profile in the deal,” said Deepa Hingorani, South Asia VP, IFU.

This investment will position Leap India as a pioneer in India’s infrastructure sector – a sector that Manav Bansal, CIO of Neev Fund, called a “sunrise” industry of Asia.

“We welcome the Danish SDG Investment Fund as a partner and co-investor in Leap India,” said Bansal. “This fructifies our fidelity to the Sustainable Development Goals of poverty alleviation by doubling farmer income through food security in India.”

With its sights set on growing into a key agri-silo and logistics platform, Leap India will use the funds raised through this round to scale up and support future growth, stating, “SDG Fund’s investment, along with round two of investment from the Neev Fund, backed by the UK Government – Department for International Development (DFID) and State Bank of India, will allow us to expand and reach a critical size, while, at the same time, team up with strong, foreign institutional investors.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.