Temasek, the Singaporean government investment firm, has invested Rs2.5 billion ($41.5 million; €30 million) into Star Agriwarehousing and Collateral Management, an Indian agri-supply chain company.
The funding will go towards developing Star Agri’s network of agri-logistic facilities such as agriculture warehouses and private mandis — marketplaces to sell produce. The investment will also help Star Agri to implement international standards of silo-based storage, mechanised sorting of produce and real time inventory and risk management, according to a statement on the Star Agri website.
IDFC Alternatives, a multi class investment manager in India, will remain invested in the company after first committing Rs1.5 billion in 2012 — its first agri investment.
“We are happy to welcome Temasek as our partner in StarAgri,” wrote Girish Nadkarni, partner at IDFC in the statement. “Through StarAgri’s efficient procurement, transparent price discovery, collateral finance and innovative value added services, the company is expected to touch the lives of millions of farmers.”
Kotak Investment Banking handled the deal.