Mandala Agribusiness Fund, an Indian private equity fund, has made its first investment leading a $33 million Series D preferred share equity round of financing for Arcadia Biosciences, a Californian biotechnology fund.
Mandala invested $30 million into the company and nine existing investors contributed the remaining $3 million between them. The round takes Arcadia’s total equity capital raised to $101 million.
Arcadia is currently working towards getting approval for various seeds that are drought, flood and salt intolerant – it has already filed with the Food and Drug Administration in the US and food regulators across Latin America. Its Indian filing is planned for next year, according to Uday Garg, managing director of Mandala Capital.
The extra capital will speed up the development and commercial launch of the products further.
While Mandala aims to invest only into Indian agribusinesses, the clear link between Arcadia’s technology and improving the growth of rice and wheat in India made it a very relevant play, said Garg. The company also touches every major agricultural economy worldwide, he added.
The new capital will fund speeding up the development and commercial launch of products.
The nine existing investors include CMEA Capital, BASF Venture Capital and Saints Capital, according to a press release.
Mandala Agribusiness Fund is targeting $250 million and is currently on $115 million. It is a typical 10-year private equity fund charging a 2 percent management fee and 20 percent performance fee.
Reporting by William Amofah and Louisa Burwood-Taylor