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CapAleph joins growing private agri fund community in India

The private equity firm is raising Rs1.25 billion ($20 million; €18.7 million) for a food and agri PE fund.

CapAleph, an Indian private equity firm, is raising a Rs1.25 billion ($20 million; €18.7 million) for a food and agribusiness private equity fund.

The fund is one of few operating in the agriculture sector in India. Others include private equity firms Mandala Capital, SEAF India and Rabo Equity Advisors and venture capital firms Omnivore Partners and Aspada Investments. There are also impact funds operating in the sector such as Aavishkaar, SIDBI VC, Google Impact and Acumen Fund, according to Agri Investor data.

The fund already has an anchor order for Rs375 million from the Meeran Family office, sponsors of Eastern Condiments, a spice company.

The fund will target local institutions and high net worth individuals but is also open to foreign investors, according to a spokesperson at the fund.

“Food and agriculture is much underinvested India but there is huge potential amid growing incomes and increasing demand for food so there is a lot of scope for investment,” he said.

The company has not hired any new staff to lead the new initiative, although it is hiring for a general manager research and business development professional to focus on technology investments; agtech will be one of the fund’s focus areas.

The fund will also not rule out agricultural production investment opportunities and will lean towards more early stage companies, according to the spokesman.

Capital will be invested as it is committed and the firm is targeting a final close at the end of the year.