Leap India raises Rs 104 cr funding from CDC Group plc

Leap India Food and Logistics Pvt Ltd (Leap India) has raised Rs 104 crore through debt financing from CDC Group, the UK’s development finance institution and impact investor. Leap India will utilise these funds towards building silos in low-income states, a statement said.

Leap’s aim is to build a large platform of grain storage sites, which can help FCI (Food Corporation of India) and the private sector make grain storage more efficient with the use of technology and modern storage infrastructure, Leap India founder Anurag Malempati said. “We support and work towards achieving the second goal of the IFC (International Finance Corporation) Sustainable Development Goals which focuses on ending hunger, achieving food security, and improving nutrition and promoting sustainable agriculture by 2030,” he added.

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CDC’s debt investment, along with the previously raised equity investments from IFU (a Danish sovereign wealth fund) and Neev Fund (backed by the UK Foreign and commonwealth Development office and SBI), will allow the company to expand and reach a critical size and team up with strong, foreign institutional investors, Malempati said. “As India and the UK launch new initiatives at the current COP26 summit, we believe it is a great match with the timing just right supporting the climate initiative, and we look forward to taking Leap to the next level, together with our investors, he added.

Srini Nagarajan, Managing Director and Head of Asia at CDC, said the organisation has partnered with Leap India on a joint ambition to help address food security challenges, which are intensified by climate change. “As a DFI (Development Finance Institution), we understand the integral role that the Food and Agriculture sector plays in ensuring good health, wellbeing, and long-term development of across all of society. As such, our investment is aimed at bolstering Leap India’s handling and storage capacity, helping reduce food loss, and ensuring that the nutritional needs of low-income households are met,” Nagarajan added.

He further stated: “Moreover, we hope that our investment in the nascent agri-silo sector will have a demonstration effect in the market and attract greater funding to similar projects over the next 5 years. Through this commitment, our goal is to help scale responsible businesses that are creating climate mitigating solutions that will ensure communities are fed, economic opportunities increase, and amplify long-term inclusive development across all of society.