The Huruma Fund invests 10 million euros in WayCool Foods
Beneficiaries of the Huruma Fund investment through the WayCool project together with a member of Gawa Capital.
Madrid, February 21, 2022.- The Huruma Fund, managed by GAWA Capital and financed by the European Commission, FONPRODE, COFIDES and private investors and savers, has formalised its first capital deal in India through an investment of 10 million euros in WayCool Foods.
WayCool Foods is one of the largest and most widespread agri-food companies in India. It is an agri-tech company, which processes, distributes and supplies staple dairy products and fresh produce. Focusing on food processing and marketing, WayCool uses innovative technology to expand and manage the complex agricultural supply chain, from production to sale.
STRENGTHENING THE FOOD CHAIN IN INDIA
The Huruma Fund investment will be used to accelerate WayCool’s business plan, leveraging technology and automation to improve efficiency. The objective of the investment is to strengthen the Company’s leadership in the development of a more sustainable farming value chain. Through its programme Outgrow, Waycool offers farmers comprehensive extension services, which help reduce input costs and improve farming practices thereby lowering production costs while enhancing the quality of the products. As a result, smallholders’ income is expected to increase by over 10%.
A farmer at work in an agricultural field in India.
WayCool has a broad range of products in various channels, serving over 1,000 customers and working with over 85,000 farmers through the Outgrow programme. The Company already operates in 6 states with more than 40 distribution centres, and has recently entered the Middle East market.
The joint CEOs of GAWA Capital, Agustín Vitórica and Luca Torre, point out that, “We are very proud of supporting the breakthrough being led by WayCool, increasing the revenue of smallholder farmers, reducing food waste and providing more nutritious food to some of the most vulnerable people in India”.
Workers unloading vegetables at a distribution center in India.
The Chairman of COFIDES, José Luis Curbelo, highlights, “The Huruma Fund and the accompanying technical assistance funds, are helping to improve financial inclusion, thus enabling greater economic and environmental sustainability”.
ABOUT THE HURUMA FUND
The Huruma Fund is the first project led by COFIDES within the framework of agriculture blending facilities in the European Union. With the advice of GAWA Capital, it has 120 million euros contributed by the European Union, FONPRODE (the Development Promotion Fund) of the Spanish Agency for International Development Cooperation (AECID), COFIDES and private investors, thanks to the collaboration of CaixaBank Private Banking, which has distributed the fund through its national network. The objective is to provide access to loans to farmers in underserved rural areas in Latin America, the Caribbean, Sub-Saharan Africa and Asia. It includes a Technical Assistance Facility (TAF) to provide consulting services and training related to agriculture, and to help improve the entities the Fund invests in, enhancing the impact on excluded rural populations.
ABOUT GAWA CAPITAL
Established in 2010, GAWA Capital is the leading firm in impact investing in Spain, having mobilised over 195 million euros in public and private investments. Its objective is to improve the lives of low-income communities by promoting investing in social enterprises, while providing their investors with a financial return. GAWA was a pioneer in the introduction of impact investing in Spain, launching three funds which invest in emerging countries with an inclusive approach to market solutions for social issues.
ABOUT COFIDES
COFIDES, a State-owned company engaging in the management of State and third-party as well as its own funds, pursues a number of aims: internationalisation of Spain’s economy, furtherance of economic development and fortification of the solvency of companies affected by COVID-19. In addition to the Spanish State, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
This press release was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.
WayCool Foods is one of India’s largest and fastest growing agribusiness companies. Focused on food development and distribution, the company leverages innovative technology to scale and manage the complex agricultural supply chain from cultivation to sale.
WayCool has a wide range of products across multiple channels, serving over 1,000 customers and working with over 85,000 farmers through its Outgrow programme. La empresa ya opera en seis estados con más de 40 centros de distribución, entrando recientemente en el mercado de Oriente Medio. Advanced technology and a push for its own brands has enabled WayCool to increase its revenue x4 and its customer base x10.
Huruma’s investment will be used to accelerate WayCool’s business plan, leveraging technology and automation towards efficiency improvements The investment aims to strengthen WayCool’s leadership in building a more sustainable supply chain.
WayCool has implemented environment policies covering energy, water and waste, setting quantitative objectives to manage these areas. The institution seeks to reduce the negative externalities inherent to its activity by progressively implementing an Environmental and Social Management System (ESMS) with the support of external consultants and by increasing direct supply from farmers.
Country: India
Inversión: EUR 10 million
Investment type: Equity
Technical assistance: Pending confirmation
Fecha inversión: December 2021
Huruma: Transforming Lives
Huruma’s investment in WayCool aims to transform the lives of smallholder farmers through the following theory of change:
Input: EUR 10 MM equity for an Agribusiness.
Output: Expansion and business plan development of an Agribusiness.
Outcome: Increase supply from farmers to >60% and >10% farmers’ income*.
(*) Metrics calculated on the basis of the study estimates “Understanding Impact Performance: Agriculture Investments” (GIIN, 2020)
Pahal is a Microfinance Institution (MFI) that provides loans to low-income households with a strong outreach to women and farmers. Launched in 2011, it is currently present in 7 states of central India with a network of 201 branches and high penetration potential. In 10 years, it has supported more than 800,000 households in marginalised communities.
Pahal has become one of the fastest growing MFIs, scaling efficiently in a short period of time due to its strong technological focus. Transforming finance in underserved markets, Pahal aims to reach 2 million clients by 2025.
Pahal’s environmental strategy has been enhanced by the launch of two products that promote sustainability among female groups: solar-lights and clean water & sanitation financing. Internal actions have been focused on increasing digitalization to reduce paper waste and promoting recycling.
In the coming years, Pahal should be aiming to develop a formal environmental policy and performance system, including specific goals and KPIs to monitor its environmental impact.
Country: India
Investment: EUR 6 million
Investment type: Equity
Technical assistance: Pending confirmation
Date of investment: Jan-22
Huruma: Transforming Lives
Huruma’s investment in Pahal aims to transform the lives of smallholder farmers through the following theory of change:
Input: EUR 6 MM focused on agricultural financing.
Output: Increase its agri-portfolio x4 and its outreach to active farmers by x3.
(*) Metrics calculated on the basis of the study estimates “Understanding Impact Performance: Agriculture Investments” (GIIN, 2020)
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