New Delhi, India, March 22, 2016—IFC,
a member of the World Bank Group, has invested $19.3 million in the Bengaluru-based
Supermarket Grocery Supplies Private Limited (SGSPL). The investment will
enable the company to expand its supply chain network in India and create
SGSPL is a wholesale distributor of groceries, fruits, and vegetables and
is the intellectual property licensor and a key supplier to bigbasket.com.
IFC’s investment will strengthen the company’s food and grocery supply
chains and benefit farmers and small and medium enterprises within its
network. It will also allow end-consumers to access better quality products
that meet higher food safety standards. The company’s workforce is expected
to grow from its current strength of 2900 to over 7500 by 2020.
“IFC’s investment will help strengthen our wholesale distribution network
and logistics infrastructure and enable us to reduce food wastage while
ensuring better quality across the entire supply chain,” said V.S. Sudhakar,
CEO and Co-Founder, SGSPL. By 2017, the company plans to develop
direct relationships with over 3000 farmers to ensure fair prices.
The urban grocery market in India is growing due to rapid urbanization.
Developing efficient supply chain systems can minimize spoiling of farm
produce, avoid wastage, and preserve food quality.
“Our investment fits well with IFC’s strategy of focusing on efficient
supply chains. We believe that the investment can effectively bridge the
gap between manufacturers of food and grocery products and the demands
of end-consumers in an efficient way,” said Pravan Malhotra, Global Co-lead
for Internet Investments at IFC.
India is IFC's top country exposure. IFC's committed portfolio in India
is over $5 billion as of June 30, 2015. In FY15, IFC committed $1.4 billion
in new investments. In addition to strengthening local capital markets
in India, IFC is focused on boosting financing in infrastructure and logistics,
promoting financial inclusion, helping create conditions to attract increased
private capital, and helping structure public-private partnerships.
IFC is part of the World Bank Group and the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital and expertise
to create opportunity where it's needed most. In FY15, our long-term investments
rose to a nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
IFC’s Venture Capital (VC) team invests in high growth companies that
help spur the digital economy, including in e-commerce and online marketplaces.
IFC invests in local businesses based in emerging markets, as well as increasingly
in US/European companies with technologies and services geared towards
emerging markets. To date, IFC has invested almost $1 billion in venture/growth
companies globally. For more information see www.ifc.org/vc.