Mayfield India and Nexus Venture Partners invest Rs.35.5Crore in Sohanlal Commodity Management Pvt. Ltd.
Investments to help accelerate growth
Mumbai, March 28, 2011 – Mayfield India and Nexus Venture Partners today announced a new investment in Sohanlal Commodity Management Pvt. Ltd. (SLCM). Under the terms of the investment, Mayfield India and Nexus Venture Partners will invest Rs. 35.5Crore in SLCM to expand its business, invest in IT and add further warehousing capacity. The Company had earlier raised Rs. 10 Crore from Nexus Venture Partners.
This new investment reflects Mayfield India’s investment theme of investing in technology-driven supply chain solutions. Currently, SLCM is a leading company focused on providing post-harvest agricultural solutions. The Company provides comprehensive warehouse management and procurement solutions to farmers, processors, traders, exchanges and to the Government across 70 locations and 12 states in India. It is the only company in India which is accredited with two leading national exchanges and is at the forefront of bringing technology to this sector.
Mayfield India‘s and Nexus Venture Partners’ investment provides an exciting opportunity for SLCM to expand its footprint in India.
“The agricultural logistics industry in India, after stagnating for half a century, is now going through a structural change and SLCM is a company that is a leader of that change.” said Nikhil Khattau, Managing Director, MF Advisors. He further added, “We are excited to partner with a highly motivated, innovative and driven management team in building a leading agricultural logistics company.”
“If India is to cut down wastage of agricultural produce, it has to adopt modern procurement, warehousing and distribution methods. The scope for post-harvest services in India is enormous and SLCM is squarely at the centre of this space. This investment from Mayfield is an endorsement of the company’s vision and we are delighted to have them as a strategic partner.” said Sandeep Sabharwal, CEO of SLCM. He added, “Both our investors have a proven track record of partnering for the long-term and share our commitment to offering our customers the finest solutions the industry has to offer.”
Sandeep Singhal, Managing Director, Nexus Venture Partners said, “Since our investment in 2010, SLCM has grown substantially, expanded its geographical presence, and has introduced various new services to its clients. The additional capital will accelerate the momentum in adding new commodities, new markets and new clients.”
MF Advisors Managing Director Nikhil Khattau will join SLCM’s board of directors
About Mayfield India
Over the past 41 years, Mayfield Fund (www.mayfield.com) has been at the forefront of investing in emerging businesses that have grown into industry leaders. Mayfield Fund invests in the U.S., China and India and currently has $2.7 billion under management. It has invested in more than 500 companies of which over 105 have had initial public offerings and over 100 have been acquired. Some of Mayfield past investments include Compaq, Amgen, Genentech, SGI, 3COM, SanDisk, Citrix, Intuitive Surgical, Web Methods, Tibco, 3PAR and LSI Logic.
Mayfield Fund started investing in India in 2006, and along with a dedicated India fund, raised in 2008, has made direct investments in companies like Bharat Matrimony, Fourcee, Centum Learning, Satya Paul, and Geodesic Techniques.
Mayfield India Fund invests in Indian companies that have the potential to become global leaders, with a focus on consumer services, internet, mobile, technology & technology enabled services, logistics and agri-related businesses.
About Nexus Venture Partners
Nexus Venture Partners (www.nexusvp.com) is one of the top Venture Capital Firms in India focused on investing in innovative early to growth stage companies. Started in 2006, Nexus Venture Partners is led by a group of successful entrepreneurs with extensive investing experience in entrepreneurs in India and globally. Nexus truly understands the unique challenges faced by entrepreneurs and are aware that it takes more than capital for a company to succeed. Each entrepreneur Nexus partners with has access to the entire team in India and Silicon Valley for help in recruiting talent, forging new alliances, opening doors to new customers, shaping the strategy and connecting with best of breed advisors or board members.
With funds of $320 million under management, Nexus has an active portfolio of 30 companies. Nexus invests in companies across sectors - technology, consumer services, media, energy, agribusiness, outsourced services, internet and mobile. Some of the companies that Nexus has invested in include Komli (Internet ad network), Suminter (Organic farming), Dlight (Solar Lights), DimDim (Open Source Web Conferencing), Mapmyindia (Digital Navigation), Deccan (Neutraceuticals) and Netmagic (Internet managed service provider).
