|Global AgriSystem, a premier agri-business firm in India, received expansion capital from Nine Rivers.|
|Target Company Name||Global AgriSystem Private LTD|
|Buyer Name / MBO Team / MBI Team||Nine Rivers Capital|
Global AgriSystem Private Limited (GAPL) is amongst India's premier agri-business firms focused on fresh produce procurement and supply chain management. The Company offers procurement, storage, processing and distribution for fresh fruits & vegetables through a unique combination of technology and domain expertise built over a decade. The Company presently operates nine agri-hubs in various parts of the country and plans to expand its footprint to 20+ agri-hubs over the next two years.
Global AgriSystem Private Limited retained CFA India to assist them with raising capital to expand their business. Based on the capital expenditure nature of the business model, the initial plan called for a substantial influx of capital which would have lead to significant dilution.
CFA India conducted detailed management meetings to understand their growth strategy and use of funds. They ultimately suggested recasting financials and suggested building in a mix of capex and lease models for their procurement and distribution centers. This strategy reduced Global AgriSystem's funding requirements dramatically, moderated risk and stabilized the business model, making the company an attractive investment opportunity for Private Equity Groups. Within a six week timeframe the funding requirements were met.
|ICFG Office||Pune, India|
|ICFG Advisory||cfa India, member of ICFG, advised in the transaction|