Ergos Business Solutions Private Limited

South Asia Food and agriculture

Ergos Business Solutions is an integrated supply chain business operating through a network of micro warehouses in rural Bihar in India. It aims to enable market linkages to small farmers in a scalable and cost-effective manner.

  • Active
  • Exited

We are invested in Ergos Business Solutions Private Limited through Aavishkaar India II Company Limited, which is managed by Aavishkaar Venture Management Services.

We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, CDC takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.

For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries:
India
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Food and agriculture
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund:
Aavishkaar India II Company Limited
Fund Manager:
Aavishkaar Venture Management Services
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
March 2015
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
India

We are invested in Ergos Business Solutions Private Limited through Aavishkaar Emerging India Fund, which is managed by Aavishkaar Venture Management Services.

We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, CDC takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.

For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries:
India
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Food and agriculture
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund:
Aavishkaar Emerging India Fund
Fund Manager:
Aavishkaar Venture Management Services
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
March 2020
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
India

We are invested in Ergos Business Solutions Private Limited through Chiratae Ventures International Fund IV, which is managed by Chiratae India Investment Manager.

We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, CDC takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.

For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries:
India
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Food and agriculture
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund:
Chiratae Ventures International Fund IV
Fund Manager:
Chiratae India Investment Manager
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
October 2020
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
India

Our investment

We invested in the business as a co-investment alongside the Aavishkaar Bharat Fund, a 2018-vintage fund investing in high impact sectors in India, such as agriculture, financial services, healthcare, waste and sanitation, renewable energy and logistics. CDC committed $25 million into the fund in late 2017.

Impact

Increase incomes for smallholder farmers through market access and enhanced financial inclusion (SDG 2.3).

How?

Providing farmers with access to warehousing facilities to store grains post-harvest, which allows them to minimise grain wastage and maximise the price of produce by deferring sales to the off-season. They are also able to access credit facilities collateralised against stored grains and gain market access to sell grains.

Stakeholder Geography Characteristics
Customers (farmers)

Bihar, India

Smallholder farmers cultivating less than two hectares of land. Indian smallholder farmers have average earnings of $3 - 4 per day.

Scale Depth/Duration

Expected to reach 112,000 farmers by 2025.

Average increase in earnings of around 25 – 30 per cent per farmer.

Grid Score Contribution

This investment is made under an approved Catalyst Strategy, and therefore does not require a grid score.

To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.

  • Financial: The commercial market does not offer capital in sufficient quantities to meet the company's plans / needs.
  • Value-add: CDC is supporting improvements in environmental, social, governance and business integrity management systems and processes.
Risk
  • Execution: The impact case relies on the business’ successful scale-up.
  • Unintended: Customers at risk due to loans against commodity stock.

Environmental and social aspects

Technical assistance was used to support a skills development initiative across over 100 'village champions', internal training of human resources teams and career progression of outstanding 'village champions' through a 'train-the-trainer' programme. The provider has delivered eight out of twelve modules to date to all 119 'village champions'. All modules are for ten hours, eight hours of live in-person learning followed by a case study submission and webinar after the training.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries:
India
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Food and agriculture
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Co-Investments Equity
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2020
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$3m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
India

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