The Huruma Fund invests 8 million euros in Sindhuja Microcredit, its third equity investment in India
• Co-financed by the European Union, FONPRODE, COFIDES and private investors
• Sindhuja Microcredit to provide loans to low income households and especially stands to benefit farmers and women
Noida, April 2, 2024. The Huruma Fund, managed by GAWA Capital and financed by the European Union, AECID (through FONPRODE funding), COFIDES, and private investors, has completed its third investment in India by acquiring a minority stake in the microfinance institution Sindhuja Microcredit to the tune of 8 million euros.
Sindhuja provides loans to low-income households and has extensive reach to women and farmers, also increasing exposure to the micro, small, and medium enterprise sector. Created in 2018, Sindhuja is present in nine states in northern India with a network of more than 220 branches and a high growth potential in disadvantaged areas. It supports more than 300,000 female clients and aims to reach more than 2.5 million by 2025.
AGRICULTURAL PRODUCT DEVELOPMENT
Sindhuja has quickly become established as one of the fastest expanding microfinance institutions in India, achieving significant growth in just 5 years. The entity aims to launch a specific individual product for small agricultural producers and hopes to serve more than 1 million farmers by 2028.
GAWA Capital’s Head of Investments, Tomás Ribé, stated: “We are very happy to partner with Sindhuja and support them in their expansion into new geographies and products. We believe that Sindhuja can provide the necessary access to agricultural financing for smallholder farmers, a highly under-served segment in India”.
COFIDES’s Head of Partnerships for Development, José Carlos Villena, stated: “The Huruma Fund’s investment in this highly digitalized financial institution is aligned with the priorities of Spanish Cooperation, since it will especially contribute to supporting the launch of individual credit products, thus improving access to financing for women in rural areas (100% of clients)”.
Welcoming the equity investment in Sindhuja, Ambassador of the European Union Delegation to India, Herve Delphin, said: “Huruma Fund illustrates perfectly how #TeamEurope deploys innovative financing mechanisms to attract much needed private investments in partner countries. Experience has shown that EU contributions, by providing guarantees and reducing investors’ risks, allow to scale up funding by a ratio 1:9. We are proud that this serves an investment that will eventually facilitate access to finance of small farm holders, especially women, so they can expand their activities and improve their income”.
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. Managed by 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 Spanish firm in impact investing, having mobilised over 204 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 is a state-owned enterprise specialized in the management of State funds that provide medium- and long-term financing for private investments linked to different public policy purposes. COFIDES directly manages funds aimed at supporting the internationalization of Spanish firms, strengthening the solvency of companies severely affected by the COVID-19 pandemic, to attract foreign direct investment into Spain through co-investment deals and to contribute to the growth of the impact investment ecosystem in Spain. In addition, COFIDES supports the management of the financial cooperation portfolio of the Spanish Agency for International Development Cooperation, promoting sustainable development in emerging economies and developing countries. In the ownership structure of the Company, the Spanish State holds 53% of the equity. The remaining 47% is held by Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
ABOUT THE EUROPEAN UNION (EU)
The EU, which consists of 27 countries, has the world’s largest economy and its third largest population, after China and India. Though richly diverse, the countries that make up the EU (its ‘Member States’) are all committed to the same basic values: peace, democracy, the rule of law and respect for human rights. They have set up common institutions so that decisions on matters of joint interest can be made democratically at the European level. By creating a frontier-free single market and a single currency (the euro) which has been adopted by 20 Member States, the EU has given a significant boost to trade and employment. It is also at the forefront of policies on sustainability.
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.
– In three Indian states (Tamil Nadu, Karnataka and Andhra Pradesh)
Madrid, November 15, 2023. GAWA Capital requires consultancy services to implement a technical assistance programme for farmers: farmer mobilization and onboarding of a cluster development program in relation to the Huruma Fund Technical Assistance Facility. For the purposes of this call for tenders, GAWA is publishing this call for tenders using the simple public tender procedure, in accordance with the attached documentation.
All proposals must be sent, in English, to the following e-mail address: tafhuruma.waycool@gawacapital.com. Proposals sent by any other means will not be considered.
Technical and financial proposals must be sent by email in password-protected PDF format (to ensure the transparency of the process) before 13th December 2023 at 14:00 h (CET time). Proposals received after the deadline will not be accepted.The password will only be sent after 14:01 h (CET time) on 13th December 2023 to the same address to which the proposal was sent. Those proposals whose password is sent beforehand will not be accepted.
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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