Agri-Logistics Firm SLCM Raises 100 Crore from PE Fund

KOLKATA: Leading agri-logistics Group, Sohan Lal Commodity Management (SLCM), has raised 100 crore in the fourth round of private equity funding led by Creation Investments Capital Management, and existing investor, Everstone Capital. 

SLCM has already been backed by private equity funds Everstone Capital, Mayfield Advisors, Nexus Venture Partners and Emerging India Fund of ICICI, in prior successful rounds of funding. 

The company plans to utilize funds for its NBFC, Kissandhan eyeing a three-fold growth of 300% in loans disbursement by the end of this fiscal and its expansion to global markets. SCLM Group's agri-financing arm - Kissandhan has already achieved a total disbursement figure of about Rs 250 crore in just 15 months of existence. 

Expecting a multi-fold growth with footprints expanding to other global markets, the Group has plans to expand the warehouse management network from current 760 to 1500 warehouses pan-India. 

After successfully demonstrating the 'Integrated Asset Light Agri-Logistics' model in India, last year the group started providing services in Myanmar. 

Speaking on the development, Mr. Sandeep Sabharwal, promoter and group CEO, SLCM said, "We welcome Creation Investments on board and believe our partnership will be a catalyst for the company's future plans. Our Asset light business model is our key differentiator that defines us as thought leader in the domain. Using our expertise in scientific warehousing, we are committed to steer the sector to a different horizon of growth in the years to come. 

We will leverage our operational expertise with the knowledge of Creation Investments which have invested in, and possess in-depth insight of financial solution providers, across Asia and other developing economies." 

Talking about their foray in the Indian Market, Mr. Ken Vander Weele, Co-Founder & Partner, Creation Investments Capital Management said, "We are pleased to enter the agricultural services sector in India via this investment of growth equity in SLCM. We are especially impressed with the dedication of the promoter and the innovations that SLCM has brought to this critical sector of the Indian economy. 

In addition to their significant warehousing and commodity management innovations, SLCM was the first company in this sector to provide financing for its customers via the acquisition of an NBFC and this fits perfectly with our mandate to invest in innovative financial solutions." Positron Consulting Services, a management consulting firm acted as an advisor to Creation Investments Capital Management for this ?transaction.
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