IVFA buys India's Seedworks
India Value Fund Advisors (IVFA) has bought a majority stake in India-based agricultural research firm Seedworks International.
Financial terms of the transaction have not been disclosed; Srikrishna Dwaram, a partner at IVFA, told AVCJ that the firm is prepared to commit up to $40 million to support the company's growth plans, but that figure does not represent the size of the initial investment.
IVFA bought its stake from Wand Partners, a US-based PE firm that first provided the company with seed funding 18 years ago and purchased a controlling stake in 2007.
Seedworks develops, produces and markets hybrid seeds for India's agricultural sector, with particular focus on rice and cotton. The company will use the new capital to improve its position in both sectors, particularly cotton. IVFA intends to help Seedworks, which it considers strongest in research and development, enhance its business in other areas.
"The main founder is a PhD in plant breeding, and his focus area has always been R&D," says Dwaram. "We feel that by leveraging on that potential and improving the sales and marketing distribution capabilities of the company, we should be able to take it to the next level."
Seedworks markets its products in India under the US Agriseeds and Seedworks brands, and plans to enter the Philippines within the next year. Seedworks India, a sister company focused on vegetable crops including okra, tomatoes and peppers, was sold last year to Bayer CropScience, the agricultural division of global conglomerate Bayer.
IVFA is currently investing its fifth fund, Indium V, which launched in November 2014 and closed last year at $700 million. The fund is sector agnostic but has made investments in the food and agriculture space; it joined KKR and Leapfrog Investments for a INR5 billion ($80 million) investment in farm-focused non-banking finance company Magma Fincorp last March and committed $30 million to restaurant chain operator DeGustibus Hospitality.
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