Hyderabad-based seed firm SeedWorks International Pvt. Ltd. has raised $40 million funding from private equity company India Value Fund Advisors (IVFA).

“We have been evaluating the food and agri-business space for a while now. We have just acquired a majority stake in SeedWorks, which is in the seeds business with a focus on rice and cotton,” said Srikrishna Dwaram, partner, IVFA.

IVFA which raised its fifth fund— Indium V—with a corpus of $700 million in July 2015, has invested in firms like deGustibus Hospitality Pvt. Ltd, which owns and operates restaurant brands Indigo and Indigo Deli, non-banking financial company Magma Fincorp Ltd and a re-investment in portfolio firm Atria Convergence.

SeedWorks International Pvt Ltd, is involved in breeding, production and marketing of hybrid seed of Rice, Cotton, Pearl Millet and Corn. The company‘s research programs are based in Hyderabad with trial locations situated in the key agro-climatic zones of India. Hybrid of Rice and Cotton of the company has become popular for their superior performance and for the high quality seed standards.

The investment in SeedWorks is not the first by IVFA in the food and agri-business sector.

In 2013, the company invested $40 million in VKL Seasoning, which manufactures food ingredients and flavouring in India and West Asia, with a strong focus on the quick service restaurants and processed food industries.

The following year, the PE firm bought Financial Technologies (India) Ltd’s warehousing subsidiary, National Bulk Handling Corp. Ltd, for Rs.241.74 crore. The company provides warehousing solutions for commodity and collateral management.

The SeedWorks investment by IVFA is one of the biggest in the Indian seeds sector.

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