CIF - Empowering Farmers Through Innovation

IFC’s Inclusive Agritech Facility Investments in India Empowering Farmers Through Innovation

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Empowering Farmers Through Innovation IFC’s Inclusive Agritech Facility Investments in IndiaContents Foreword   5 About the Inclusive Agritech Facility (IAF)   8 Transforming Agriculture in India   10 A Conversation with Srivalli Krishnan, Gates Foundation Digitizing Dairy   19 How Technology Is Shaping India’s Smallholder Farms Sunlight and Sustainability   29 Alternative Energy Is Empowering Indian Farmers Bridging Capital and Innovation   39 A Conversation with Abhilash Sethi, OmnivoreSmallholder Swamy K R built a new cowshed to accommodate his growing herd.IFC | 5 This is where agricultural technology, or agritech, offers an opportunity. From digital tools and precision farming to resilience-building inputs and circular economy innovations, agritech has the potential to build more sustainable, productive, and inclusive food systems. However, for early-stage ventures in underserved markets, capital remains scarce, especially for technologies seen as too risky or untested for commercial investment. To fill this financing gap, the International Finance Corporation (IFC), with support from Gates Foundation, launched the Inclusive Agritech Facility (IAF) in 2018. By using blended finance to de-risk equity investments, the facility enables IFC to back high-impact agritech companies across the value chain—including those focused on solar irrigation, post-harvest innovations, and waste-to-value startups. Collectively, they are transforming how food is produced, processed, and distributed, while also generating more and better jobs across rural economies. IAF brings together the complementary strengths of IFC and

waste-to-value startups. Collectively, they are transforming how food is produced, processed, and distributed, while also generating more and better jobs across rural economies. IAF brings together the complementary strengths of IFC and Gates Foundation: deep sectoral expertise, patient capital, and a shared commitment to agricultural transformation. In doing so, the facility helps validate business models that unlock Foreword Agriculture remains a cornerstone of rural livelihoods and food security across South Asia. Smallholder farmers—who make up the vast majority of agricultural producers in India, Nepal, and Bangladesh—hold untapped potential to drive inclusive growth, enhance food security, and foster economic transformation. Yet persistent gaps such as limited access to finance, quality inputs, market linkages, and infrastructure, often constrain productivity and incomes.6 | Empowering Farmers Through Innovation ForeworD additional sources of capital and expand the agritech ecosystem. This approach is fully aligned with the World Bank Group’s strategy, which prioritizes job creation, food security, and poverty reduction. Through initiatives such as AgriConnect, the World Bank Group is working to transform farming and strengthen food systems by mobilizing private capital, building markets in challenging environments, and expanding access to finance for farmers and agribusinesses. IAF is a practical expression of this strategy—using blended finance to unlock investment in parts of the agrifood sector where risks are high, but the potential for impact is even greater. As a result, IAF sits naturally within this broader framework, mobilizing private capital for solutions that connect farmers to technology, markets, and financial services, while accelerating the transition toward more resilient and inclusive food systems. In India, IAF’s support has helped catalyze a strategic partnership

within this broader framework, mobilizing private capital for solutions that connect farmers to technology, markets, and financial services, while accelerating the transition toward more resilient and inclusive food systems. In India, IAF’s support has helped catalyze a strategic partnership with Omnivore, the country’s leading agritech-focused venture capital firm. The partnership has enabled Omnivore to back startups such as Stellapps, which is digitalizing India’s smallholding dairy supply chain; Ecozen Solutions, which offers solar-powered irrigation and cold storage; and altM and Fibmold, which are pioneering waste-derived packaging and feed. These innovators are at the frontier of transforming value chains— reducing waste, enabling better pricing, and creating economic opportunities for women. In this report, you’ll have the opportunity to meet some of the smallholder farmers whose lives and livelihoods have improved thanks to this partnership. These stories reflect the broader purpose of IAF: enabling agritech to deliver real-world benefits where they matter most. We are These innovators are at the frontier of transforming value chains—reducing waste, enabling better pricing, and creating more equitable opportunities for women.IFC | 7 elizabeth Namugenyi Director, Partnerships and Blended Finance, IFC Imad N. Fakhoury Regional Director, South Asia, IFC Picking roses at the right stage and using cold storage help farmers earn more at market. grateful to Gates Foundation for its continued collaboration. As the global food system faces mounting pressure to deliver more with less—more nutrition, more resilience, more equity— innovative financing models are needed to unlock new pathways.

IAF represents one such model: a demonstration of how blended

its continued collaboration. As the global food system faces mounting pressure to deliver more with less—more nutrition, more resilience, more equity— innovative financing models are needed to unlock new pathways.

IAF represents one such model: a demonstration of how blended finance can bridge risk and opportunity, and how targeted support at pivotal moments can help turn promising technology into impactful, scalable solutions.Investments in agriculture are critical to reducing poverty and boosting food security. Strengthening agriculture and food systems has the potential to improve the lives of millions of farmers. Agribusiness is diverse and complex, and the sector faces significant challenges , including resource scarcity, infrastructure gaps, and access to finance.

IFC is uniquely positioned to lead in agribusiness investment with private and blended finance solutions, as well as advisory services for large and small businesses. Blended finance allows IFC to support projects in the agricultural sector that would otherwise not attract commercial funding due to perceived high risks in this sector. It can provide affordable funding with less demanding terms, which allows IFC to invest in early-stage or riskier projects with high impact potential. IFC’s strategic objectives for agribusiness prioritize enhanced food security, economic development and inclusiveness, and sustainability as a driver of business. IFC continues to focus on resilient investments and creating market initiatives, particularly in fragile and conflictaffected countries. The Inclusive Agritech Facility (IAF) aims to de-risk IFC’s early-stage equity investments in agriculture technology (agritech) companies in India , Nepal, and Bangladesh and to develop solutions for smallholder farmers. The facility, launched in 2018 with support from Gates Foundation , helps demonstrate investment models that balance sector risks, commercial success, and impact goals , with the potential to attract additional investment capital. It also strengthens the partnership between the foundation and IFC. About IAFIFC equity investment of up to US$12M in Omnivore

helps demonstrate investment models that balance sector risks, commercial success, and impact goals , with the potential to attract additional investment capital. It also strengthens the partnership between the foundation and IFC. About IAFIFC equity investment of up to US$12M in Omnivore Agritech & Climate Sustainability Fund 3, a venture capital fund supported by IAF At a Glance $5M $75M $12M US$5M for concessional blended finance investments US$75M in private capital unlocked Support for equity investments in agritech companies to address market failures and constraints for smallholder farmers First loss guarantee to IFC’s and co-investment partners’ early-stage equity investments10 | Empowering Farmers Through Innovation Transforming Agriculture in India A Conversation with Srivalli Krishnan, Gates Foundation We sat down with Srivalli Krishnan, Deputy Director, Agricultural Development–Asia at Gates Foundation, to discuss the partnership, its impact, and the future of agricultural technology.IFC | 1112 | Empowering Farmers Through Innovation Tr ANSF orMING AGrICU lTU re IN INDIA what inspired Gates Foundation to partner with IFC on IAF and what makes this collaboration unique? Gates and IFC have similar goals: Both organizations aim to use private capital to catalyze increases in productivity, nutrition, and incomes, while also prioritizing women’s economic empowerment and resilience in the face of extreme weather. We have these shared priorities, but we hadn’t yet partnered together and so we decided to launch this pilot, focusing

tion, and incomes, while also prioritizing women’s economic empowerment and resilience in the face of extreme weather. We have these shared priorities, but we hadn’t yet partnered together and so we decided to launch this pilot, focusing specifically on agriculture, which would have the most impact on an estimated 126 million smallholders and those at the bottom of the pyramid. Initially, the collaboration was structured as a first-loss guarantee to support IFC investments only into agribusiness companies and not funds. Over time, we adapted and restructured the model, which enabled IFC to invest in Omnivore, India’s leading agri-focused venture capital fund. They’ve done a great job and have rigorous due diligence and deep agricultural expertise— which gave us all the confidence we needed. It was a marriage of like minds: IFC, Omnivore, and Gates Foundation. By investing in Omnivore, Gates Foundation amplified the impact of our initial $5 million and unlocked $75 million in private capital. Our partnership became more than just a traditional public-private partnership and instead what we call a “P4”—a public, private, and philanthropic partnership. All this capital came together to further our shared goals and facilitate and catalyze capital at a stage when there’s not typically a lot of venture capital (VC) funding available. why are smallholder farmers central to IAF’s vision and focus? In India and many developing countries, smallholder farmers contribute more than 60-70% of food production. In India, this figure is over 80%. They are the backbone of agriculture, yet they “By investing in omnivore, Gates Foundation amplified the impact of our initial $5 million and unlocked $75 million in private capital.”IFC | 13

figure is over 80%. They are the backbone of agriculture, yet they “By investing in omnivore, Gates Foundation amplified the impact of our initial $5 million and unlocked $75 million in private capital.”IFC | 13 remain the most vulnerable to challenges like extreme weather and have minimal access to resources—whether financial, technological, or otherwise. For India to achieve economic transformation, the agriculture sector needs to be more productive. This efficiency will also put less pressure on natural resources. How does this initiative align with Gates Foundation’s broader mission in agriculture? IAF is allowing us to test the hypothesis that agritech, combined with the right business models, can transform the sector. Success in agritech doesn’t come from technology and innovation alone—it’s about developing scalable models that deliver products and services efficiently to smallholders. The idea was to test various business models that work in this sector to enable and catalyze productivity gains. For instance, Stellapps doesn’t need to work directly with farmers who produce milk, but rather works on a solution that allows a smallholder farmer to be more productive. That’s our entry point: be in that intermediate level where we are A digitized supply chain is helping streamline the processing of ghee—India’s popular clarified butter.14 | Empowering Farmers Through Innovation Tr ANSF orMING AGrICU lTU re IN INDIA supporting a company that drives productivity across the entire dairy supply chain. what progress has IAF achieved in advancing agritech innovation in India? The facility is still in its early stages, and we’re learning that it’s been helpful to diversify the portfolio across multiple companies and sectors. It’s also helping

what progress has IAF achieved in advancing agritech innovation in India? The facility is still in its early stages, and we’re learning that it’s been helpful to diversify the portfolio across multiple companies and sectors. It’s also helping us to test various entry points and approaches: We still don’t know if our entry point should be inclusive market-building, productivity enhancement, or post-harvest management, just as an example. We are also nudging the entire ecosystem to really look at how patient capital and a facility like this can unlock potential in high-risk stages of startup development. While not directly funded or supported by IAF, another achievement is the high-quality technical assistance, alongside capital, that Omnivore is providing. Startups in the portfolio are finding it invaluable: They benefit not just from financial support but also learn from their peers’ experiences and mistakes. The learning platform is really helping accelerate growth and innovation. what is the role of the private sector in advancing agricultural solutions? We sometimes forget that the largest private sector actors in agriculture are the farmers themselves. They produce food, but they also consume products and services. Agriculture needs open markets and cannot flourish in the absence of the private sector. A fully public sector-supported system becomes stagnant and flat, with no innovation or infusion of technology. The private sector’s role is twofold: It brings capital, but it also brings the zeal to innovate and “we sometimes forget that the largest private sector actors in agriculture are the farmers themselves. They produce food, but they also consume products and services.”IFC | 15 the whole idea to think differently, which in turn brings in the rapid adoption of technologies

“we sometimes forget that the largest private sector actors in agriculture are the farmers themselves. They produce food, but they also consume products and services.”IFC | 15 the whole idea to think differently, which in turn brings in the rapid adoption of technologies and innovations. Globally, we also see that the private sector drives efficiencies—it finds a way to develop and deliver a product that achieves a bottom line, which a public sector-financed system can’t do. Having the private sector is critical to transforming the agricultural sector into becoming more productive. How does blended finance play a role in fostering agricultural innovation? Blended finance bridges critical gaps in the startup lifecycle, particularly between Series A and Series B funding. This stage is the riskiest: Companies are burning capital as they refine their models, scale operations, and test market viability. That is where patient capital should be—but it’s often not because investors traditionally look for safer entry points. IAF provides patient capital during this “black box” phase and plugs in that gap, giving founders the freedom to experiment, iterate, fail, try again, improve, and learn from each other— without immediate pressure to churn out quick returns. For farmers like Sopan Pansare, modern agricultural technology is driving better yields and stronger harvests.16 | Empowering Farmers Through Innovation Tr ANSF orMING AGrICU lTU re IN INDIA Are there standout companies in the omnivore portfolio that exemplify the transformative potential of agritech? All of the companies are really interesting, but there are a few that are really innovative and redefining what’s possible in agriculture. For example, altM is converting crop residue waste into industrial inputs, which is addressing both waste and

potential of agritech? All of the companies are really interesting, but there are a few that are really innovative and redefining what’s possible in agriculture. For example, altM is converting crop residue waste into industrial inputs, which is addressing both waste and sustainability. I see huge potential in the future. Loopworm, another company in the portfolio, uses discarded silkworm to manufacture byproducts into pet food and other byproducts. It’s a transformative approach to the circular economy. These sort of “out there” companies are really looking to change the entire ecosystem. Another one is Ayekart Fintech, which is looking to make markets more inclusive by digitally empowering Farmer Producer Organizations and micro, small, and medium-sized enterprises (MSMEs) with access to finance, market linkages, and capacity-building across India’s agri-value chains. And of course, models like Stellapps Technologies and Niqo Robotics are targeting a B2B entry point that could really change the dynamics and economics of the entire ecosystem moving forward. How do gender and environmental considerations shape the facility’s mission? Women are the backbone of agriculture in India, comprising With 80 million smallholder farmers, India is the world’s largest producer and consumer of milk.IFC | 17 more than 70% of the workforce. In sectors like dairy, it’s over 80%, and so we really need to approach these high-potential sectors in more inclusive ways— whether it’s drones that are designed for women operators, or setting up systems that are operated by women, like milk collection and chilling plants. These can really transform the rural economy and improve livelihoods. Within Omnivore’s portfolio, for example, we have seen

designed for women operators, or setting up systems that are operated by women, like milk collection and chilling plants. These can really transform the rural economy and improve livelihoods. Within Omnivore’s portfolio, for example, we have seen entrepreneurs who are tackling specific challenges to catalyze impact. Varaha has done multiple successful carbon credit projects with women smallholder farmers; Ecozen, which builds solar-powered cold chain solutions, has piloted storage hubs managed by women selfhelp groups in perishable supply chains like fruits and vegetables, reducing food loss while creating clean energy-driven microenterprises for women. We know that agriculture is the sector that is most negatively impacted by extreme weather, including erratic rainfall and rising temperatures. We need to be very intentional in understanding what the sector needs to adapt so that smallholders become more resilient. We cannot wait for another 15 years to start thinking. We need to start doing it now, and agritech is forcing us to address these urgent challenges with ingenuity and creativity. what excites you about the future of this initiative? I’m eager to see how the startups supported by IAF evolve in the coming years. This is an important learning platform for us to better understand what patient capital and blended finance can potentially accelerate in the sector. It’s also helping us, as a foundation, refine our strategies going forward and helping us explore innovative ways to use philanthropy to scale and foster agritech. “women are the backbone of agriculture in India, comprising more than 70% of the workforce.... So we really need to approach these high-potential sectors in more inclusive ways.”Digitizing Dairy How Technology Is Shaping India’s Smallholder Farms Shyamala Ananthkumar takes

agriculture in India, comprising more than 70% of the workforce.... So we really need to approach these high-potential sectors in more inclusive ways.”Digitizing Dairy How Technology Is Shaping India’s Smallholder Farms Shyamala Ananthkumar takes a break after a busy morning milking her four cows.20 | Empowering Farmers Through Innovation DIGITI zING DAI ry When she’s finished, Ananthkumar walks roughly 50 meters to the nearby milk-collection center, the milk bucket balanced atop her head. She repeats the same routine in the evening, when the sun sets and her cows’ udders swell with milk, impatient for her return. While Ananthkumar’s routine may appear unmechanized, behind it runs an advanced digital dairy supply chain that is revolutionizing her farm, and thousands like hers across India. Technology Powering India’s Dairy Transformation Ananthkumar’s dairy farm is part of a complex supply chain called mooMark, which is powered by Stellapps, a pioneering agritech company that is working to digitize India’s dairy supply chain. As she enters the mooMark collection center in her village of Kuruburu in the Indian state of Karnataka, collection center staff mark her unique farmer identification number The moment milk from Ananthkumar leaves her can, it enters a digitized supply chain that processes roughly 15 million liters of milk a day from more than 3.5 million farmers across 17 states—accounting for about 10% of India’s formal milk supply. Instantly, Ananthkumar sees the volume, quality, and value of her milk through realtime data. This milk traceability technology also monitors cow health and nutrition, improving efficiency and transparency. Over three years with Stelsupply. Instantly, Ananthkumar sees the volume, quality, and value of her milk through realtime data. This milk traceability technology also monitors cow health and nutrition, improving efficiency and transparency. Over three years with Stellapps, Ananthkumar accessed credit, high-quality inputs, and extensive advisory services—all of which have helped her to increase her milk production and double her herd size from two to four cows. With the extra income, she’s easily paid her son’s school fees and bought a much-coveted gold necklace. Before dawn each morning, Shyamala Ananthkumar steps into her modest cowshed, amid the faint smell of hay and dung and the loud moos of her four cows to begin a wellestablished routine: She begins by cleaning the stalls with a broom, then brings buckets of water and green forage for the cows to eat, and then finally pulls up a stool, sits low to the ground, and begins to milk her cows by hand, the milk squirting loudly into the bucket below.IFC | 21 “I was impressed with the system when I first saw it and have been delivering all my milk here ever since,” she said. why Is Digitizing Dairy Important for Smallholder Farmers? India is the world’s largest producer and consumer of milk. Its 1.45 billion people consume an estimated 600 million to 700 million liters daily, nearly all produced by 80 million smallholder farmers, who average just two or three cows per farm. Smallholder farmers are critical to India’s food production but often face limited access to inputs, finance, markets, and key information. Women farmers like Ananthkumar play a vital role in the sector, often managing livestock. Agriculture provides employment for nearly half of the country’s labor force and supports rural livelihoods. While

often face limited access to inputs, finance, markets, and key information. Women farmers like Ananthkumar play a vital role in the sector, often managing livestock. Agriculture provides employment for nearly half of the country’s labor force and supports rural livelihoods. While Through its digitized supply chain, Stellapps processes about 15 million liters of milk daily, sourced from more than 3.5 million farmers across 17 states.22 | Empowering Farmers Through Innovation DIGITI zING DAI ry it currently contributes 17% to gross domestic product (GDP), there is immense potential for growth. Empowering smallholder farmers can boost quantity, quality, and affordability of food for consumers in the country while reducing poverty and creating a more sustainable future. Stellapps, which was founded in 2011, is working to make that happen. The company is supported by Omnivore and IAF as part of a broader IFC strategy to foster greater resilience in India’s food market by diversifying markets and supply, while also strengthening the quality and The system tracks milk quality and quantity at every stage, from collection to chilling to processing.IFC | 23 “Smallholder farmers don’t change overnight,” said ranjith Mukundan, Stellapps Ceo and cofounder. “It takes years of consistent intervention, patience, and support to build trust and drive adoption of new practices.” safety of the food supply chain. “Smallholder farmers don’t change overnight,” said Ranjith Mukundan, Stellapps CEO and cofounder. “It takes years of consistent intervention, patience, and support to build trust and drive adoption of new practices—and so you need folks like IFC, Gates Foundation and Omnivore who have the stamina

Mukundan, Stellapps CEO and cofounder. “It takes years of consistent intervention, patience, and support to build trust and drive adoption of new practices—and so you need folks like IFC, Gates Foundation and Omnivore who have the stamina and patience to stay with you slightly longer than typical financial investors.” How Does Stellapps’ Dairy Farm Management App work? At the collection center, the company performs a quick milk test, assessing fat and water content, nutrition, and weight— all of which is uploaded digitally to the Stellapps cloud platform. Ananthkumar, for example, can check her phone seconds later to see her day’s earnings and compare them to her previous deliveries through a mobile application. The data also helps her monitor the impact of recent changes in her cows’ diet. Milk cans are moved to solar-powered chilling facilities serving rural villages, with IoT in dairy farming sensors monitoring freshness even in remote, offgrid areas. Data points throughout the process ensure traceability: If a cow received antibiotics, it’s automatically flagged in the system—keeping antibiotics out of the supply chain. “Milk is the most perishable crop there is and so at every point—from the collection center to chilling units to processing plants—our system is able to trace the quality and quantity of our milk,” said Mukundan. “We aren’t monitoring at an aggregate level: A unique ID for every animal, farmer, and village means that if something goes wrong, we know exactly where to look.”24 | Empowering Farmers Through Innovation DIGITI zING DAI ry From Backyard Farms to Smart Dairy enterprises Stellapps provides more than just a marketplace for milk. Its dairy farm management app offers veterinary care, artificial insemination, and nutrition guidance. Farmers can order

DIGITI zING DAI ry

From Backyard Farms to Smart Dairy enterprises Stellapps provides more than just a marketplace for milk. Its dairy farm management app offers veterinary care, artificial insemination, and nutrition guidance. Farmers can order feed, purchase vaccinations, and plan their cows’ breeding cycles, with costs seamlessly deducted from milk payments. Modern farm management systems can significantly boost dairy milk yield—and many of the 67,000 registered farmers who supply directly to the company have more than doubled their production since joining, according to company findings. “We’re helping farmers transition from backyard farming to entrepreneurial ventures and trying to solve for productivity, quality, and traceability across the entire supply chain,” Mukundan said. Stellapps’ financial services arm, mooPay, leverages milk quality and quantity data to create a creditworthiness score called “mooScore,” which is integrated with Reserve Bank Innovation Hub’s (RBIH) unified lending interface (ULI) platform. This alternative scoring system has unlocked access to formal credit for farmers traditionally excluded from financial services. The loan payments are automatically deducted from milk payments that farmers receive directly to their bank accounts every 15 days. The result has been transformative: Farmers like Swamy K R, also from Kuruburu, have been able to access credit for the first time in their lives—and they’re investing in their farms. “I never even tried through a local bank,” he said on a recent afternoon, motioning to his growing herd and a new cow shed he built to accommodate them. Swamy K R received his first loan in 2022 and “when you give animals the proper nutrition and vaccinations, you shift the productivity lever from five liters to 12 liters—

motioning to his growing herd and a new cow shed he built to accommodate them. Swamy K R received his first loan in 2022 and “when you give animals the proper nutrition and vaccinations, you shift the productivity lever from five liters to 12 liters— which means a 56% reduction in carbon load per liter.”IFC | 25 a subsequent one the following year. He now has four cows—and the extra income has allowed the family to buy a refrigerator and a washing machine and to pay school fees for a son in Bengaluru. Building a Sustainable Dairy Value Chain Improving productivity is key to Stellapps’ mission to build a resilient dairy value chain. Higher yields mean fewer cows can produce the same volume of milk, drastically reducing methane emissions. Solar-powered chilling centers and energy-efficient cold chains minimize environmental impact further. Remote monitoring systems send real-time WhatsApp alerts for any drop in efficiency, ensuring swift action and reducing energy consumption. “When you give animals the proper nutrition and vaccinations, you shift the productivity lever from five liters to 12 liters—which means a 56% reduction in carbon load per liter. When you apply that at scale, you need a fraction of the animals to produce the same

Video: Digitizing Dairy PlAy VI