Mandala Capital, a food- and agri-focused private equity firm, has fully exited its investment in Edward Food Research and Analysis Centre (EFRAC), one of India’s top food laboratory testing companies.
The exit comes as QIMA, a global testing, inspection, and certification (TIC) player, acquired EFRAC for an undisclosed amount, per the announcement.
Singapore’s Mandala Capital invested $10 million in 2016 to acquire a 51% stake in EFRAC, which operates across the food, pharma, and environment verticals, specialising in the testing of food grade gases, dioxins, all contaminants and trace residues, GMO parameters, and more.
The PE firm said EFRAC, under its ownership, grew its revenue two-fold and its EBITDA at a CAGR of over 50% in the last five years. EFRAC operates in a 60,000-square-foot integrated laboratory facility.
“Over the years, EFRAC has successfully transformed into a leading integrated laboratory testing company and we are proud to have supported its growth and success,” said Uday Garg, Managing Partner at Mandala Capital.
The strategic acquisition by QIMA is a testament to EFRAC’s outstanding track record, Garg added.
The exit adds to the two already made by Mandala Capital last year. Another portfolio company, Godavari Biorefineries, one of the prominent manufacturers of ethanol-based chemicals in India, recently filed for an IPO.
Mandala Capital, founded in 2008, specialises in investments across the food and agriculture value chain within Southeast Asia and India. The firm has deployed over $250 million across the sector.
The exit comes as private equity players with Southeast Asia portfolio companies have grappled with the worst year to make money as exit leeways narrowed in 2023.
Exit count fell 70% from 21 deals in 2022 to six in 2023, where Singapore continued to be a hotspot for deal-making, according to a recent Bain & Company report.
