Fact panel
| Investee: Sahyadri Farms Post Harvest Care Limited | Investor: Incofin India Progress Fund (IPF) |
|---|---|
| Sector: Agri-Food (Primary Processing - Fruit & Vegetables) (environment) | Range of Investment ticket: >€5 million (€3 to 10 million) |
| Type of organisation: Limited Company (Commercial Enterprise) | Sector: Inclusive Financial Services & Agri-Food |
| Yearly turn-over: €202 million | Type of investor: Impact Fund |
| Type of investee: C - company | Type of investment: Private Equity |
| Country of investee: India | Expected return (of the fund): Similar to market return (8% / INR 10%) |
| Investment strategy: Impact Investment | Specifics: Development finance, Extensive Impact Measurement and Management (IMM) and non financial support |
| Ticket size of the investment: >€5 million (€9.4 million) | Some LPs: King Baudouin Foundation, Korys, BIO |
| Year of investment: 2022 |
The what: Sahyadri Farm, a C-type company
Problem addressed
India is a country with an aspirational, young population (86% of the population is younger than 55 years) focused on enriching their lives through hard work and entrepreneurship. At the same time, the country faces serious challenges like inequality (gender, education, family wealth) and a lack of technology, organised supply chains, and access to capital. Although 65% of India’s population lives in rural areas, private equity investments have largely focused on urban companies. As a result, many promising entrepreneurs in underserved regions, particularly in rural India, fail to realise their full potential.
Solution provided by Incofin
The Incofin India Progress Fund (‘IPF’) supports these promising entrepreneurs and increase their chances of success through patient capital, mentoring and access to a global network. IPF will focus on two sectors which make the deepest social impact in the Indian context, financial inclusion and the agri-food value chain. These sectors, while critical to India’s development, are often perceived as complex, especially the agri-food value chain and have traditionally seen limited interest from mainstream private equity investors. Through its sector-focused approach and global expertise in these sectors, IPF intends to bridge this gap and contribute to a vibrant private equity ecosystem. The committed capital comes from a diverse set of government and private institutional investors including Korys, British International Investment (BII), Proparco, the Belgian Investment Company for Developing Countries (BIO), the SDG Frontier Fund, the King Baudouin Foundation, several Belgian family offices and Small Industries Development Bank of India (SIDBI).
Sahyadri Farms, the first farmer owned company in India to raise private equity capital, was established in 2011 as an innovative response to the challenges faced by small and marginal farmers in Nashik (Maharashtra, India). Owned by over 6,000 smallholder farmers, it is the largest farmer owned integrated value chain operator in the fruits & vegetables sector in India. Founded by Mr. Vilas Shinde, Sahyadri Farms aimed to address various issues within India’s agricultural sector, particularly for smallholder farmers who often struggle with limited access to markets, inadequate technology adoption, and lack of financing. Given these difficulties, Sahyadri Farms introduced modern farming techniques through introduction of high-quality seeds, and efficient irrigation methods to enhance crop yields and improve the quality of produce, thereby making farming more sustainable & climate resilient. The company works with more than 40,000 farmers across nearly 45,000 acres of land for crops such as grapes, tomatoes, citrus, mangoes, bananas, pomegranates, and sweetcorn, among others, handling over 382,000 MT of food produce in Financial Year 2024-25, and generating revenues in excess of EUR 200 million.
The how: Incofin, an impact investing fund
General presentation of Incofin
Incofin Investment Management is an independent impact investment firm that focuses on financial inclusion, the sustainable food, and clean water, with a mission to promote inclusive progress and sustainable transitions. As an active investor, Incofin goes beyond providing capital, offering valuable advice, expertise, and, when needed, technical assistance to help its investees overcome challenges and create value. With over EUR 4.2 billion invested across 50+ countries in Asia, Africa, Latin America, and Eastern Europe since our establishment, Incofin has supported more than 320 investees, including financial institutions and SMEs in the sustainable food and clean water sectors.
Intention of the fund
The Incofin India Progress Fund (IPF) is strategically designed to support entrepreneur-led companies that are driving social and environmental change in India. The fund’s primary objective is to provide patient capital, which allows businesses the time and flexibility they need to grow and succeed.
IPF aims to drive deep social impact, particularly by addressing the financial needs of underserved populations and fostering sustainable practices in the agricultural sector. The fund specifically seeks companies with innovative, technology-driven business models that can create long-term solutions to India’s most pressing challenges.
Impact measurement and management
The Incofin India Progress Fund (IPF) applies a structured and adaptive Impact Measurement and Management (IMM) approach, centered on alignment with the UN Sustainable Development Goals (SDGs). Incofin implements a robust framework that tracks both quantitative and qualitative indicators tailored to each sector. For financial inclusion, this includes metrics such as the number of previously unbanked individuals reached, improved access to financial services like credit or savings products, and measurable changes in income generation. In the agri-food value chain, indicators focus on improved productivity, reduced food loss, and enhanced food security. These metrics are systematically collected from investees via internal monitoring systems, surveys, and independent audits, enabling a clear view of both direct and indirect impacts on underserved communities.
Impact is monitored continuously throughout the investment lifecycle, allowing for strategy adjustments and deep engagement with investees via mentorship and technical support. Incofin also ensures impact sustainability beyond exit and verifies outcomes through third- party assessments. As a signatory to the Operating Principles for Impact Management, Incofin maintains high standards of transparency, accountability, and dual return objectives.
Additionality
The Incofin India Progress Fund (IPF) delivers financial additionality through its provision of patient capital, offering long-term equity funding that allows investees to grow without the pressure of short-term returns.
Beyond financial support, IPF provides significant non-financial additionality through strategic interventions and technical assistance to its portfolio companies. These include providing insights on industry & competitive strategy, recruitment of key talent, strengthening of governance, developing & implementing social impact strategy, establishing critical marketing linkages and facilitating access to future growth capital. This hands-on guidance helps entrepreneurs refine their strategies and navigate the complexities of scaling in emerging markets. The fund also facilitates access to a global network of industry experts and partners, boosting market reach and fostering collaboration. Korys, for instance, the family office of the Colruyt family, is an expert in the operational food value chain with over 50 years of retail industry experience and can provide additional support for networking with European retailers and consumer markets.
More information
- Sahyadri Farms
- India Progress Fund
- Incofin
- Incofin impact report
