Assam Launches Rs 250 Crore Agribusiness Investment Fund with World Bank Support

In a significant move to boost the agriculture sector and promote small and medium enterprises, stakeholders including the World Bank have joined forces to establish a Rs 250 crore Agribusiness Investment Fund in Assam. The fund aims to enhance agricultural productivity, generate employment opportunities, and foster sustainable economic development in rural communities.

Caspian Impact Investment Adviser, a venture capital fund based in Hyderabad, has partnered with the Assam Rural Infrastructure and Agricultural Services (ARIAS) Society to launch the Assam Agribusiness Investment Fund (AAIF). ARIAS will act as the nodal agency responsible for establishing and implementing the fund, which will primarily invest in small and medium enterprises operating in the agribusiness and allied sectors.

With a dedicated corpus of Rs 250 crore, the AAIF stands out as a unique sector-specific fund designed to accelerate growth and development. By providing long-term and patient capital, the fund aims to bridge critical gaps in value chain finance within the agriculture sector, consequently increasing farmers' income and supporting vibrant agri-food value chains in Assam.

Caspian Equity, as the fund manager, will oversee the management of the AAIF. The collaboration between Caspian Impact Investment Adviser and ARIAS brings together investment expertise and deep-rooted knowledge to achieve a sustainable impact and empower rural communities.

Saurabh Johri, the Executive Director and CEO of Caspian Impact Investment Adviser, expressed his delight in partnering with ARIAS to catalyze the economic development of Assam's rural communities. He emphasized the shared mission to empower individuals and create a prosperous future, highlighting the significance of combining investment expertise with ARIAS' experience.

Ravi Narasimham, the Investment Director of Caspian Impact Investment Adviser, will lead the AAIF, and the company is eager to foster a strong partnership with ARIAS in building a prosperous and empowered rural community.

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Ashish Kumar Bhutani, Chairman of ARIAS Society, emphasized the uniqueness of the Assam Agribusiness Investment Fund as a state-led initiative aimed at addressing critical gaps in value chain finance. He stressed the fund's potential to increase farmers' income and underscored its significance in the development of the agriculture and allied sectors.

Toshiaki Ono, a Finance Sector Specialist from the World Bank Group, recognized the crucial role played by agribusiness SMEs in transforming the agriculture sector. He acknowledged the limited availability of external finance, especially long-term and patient capital required for their growth. Ono expressed confidence in the AAIF's ability to support high-growth and high-impact agribusiness SMEs, thus fostering vibrant and resilient agri-food value chains in Assam.

The establishment of the Assam Agribusiness Investment Fund marks a significant step towards realizing Assam's potential in the agriculture sector, supporting economic growth, and uplifting rural communities. This collaborative effort between stakeholders and the World Bank demonstrates a commitment to sustainable development and empowering individuals for a prosperous future in Assam.

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