Origo receives INR 75Cr in debt funding from YES BANK

• Agritechs receive a major boost; Origo receives INR 75Cr in debt funding from YES BANK
• The initiative hopes to drive tech-enabled solutions through agri commodities firms to address the agri-sector’s liquidity concerns

Hyderabad, February 2021: Origo Commodities is deeply committed towards bridging the gap in agri-ecosystem through digital and supply chain solution including financing. In its efforts towards this, YES Bank has shown commitment for the sector by providing debt financing of INR 75 Crores. This debt support from YES Bank will help Origo to deepen its presence in Agri supply chain domain and will also help overcome challenges posed by COVID-19 pandemic.

The current round of debt funding by the Bank will act as working capital for Origo. The agritech player intends to use the funds for improving the services and structures within the agricultural ecosystem. Origo currently operates in 12 states, where it provides supply chain services, commodity finance and working with institutional investors to securitize agri-commodities. The agritech player also hopes to unlock agri-commodity investments for retail investors in the coming months, which could then bring transparency and establish efficient SOPs within the ecosystem.

YES BANK has undertaken several initiatives to aid the digitization of agriculture-related processes. It has partnered with several state governments to make their schemes more efficient and enable lending options for agri stakeholders. The Bank also provides tailored solutions for digital collections, farmer-centric credit, and instant payment procedures, among others. 

Following the development, Sunoor Kaul, Co-Founder, Origo Commodities, said, “We are delighted to associate with YES BANK, and acknowledge that our association with them will be beneficial to the agri-community. We hope that the funding will revitalize the sector with liquidity and make the supply chain more efficient. Through securitization and tech-based solutions, the ambition is to make all stakeholders benefit while helping realize the true growth potential of our nation.”

Speaking on the decision, Nikhil Sahni, National Head – Government Banking, YES BANK said, “YES BANK remains steadfast in its endeavour to support the agri sector through financing, advisory and technology support. Agri supply chain has always demanded more formal financing to make it efficient and robust. We believe this partnership with Origo Commodities, will pave the way for enhanced liquidity in the sector and support the entire ecosystem – right from the small holder farmer, all the way to the processing units.”