Organica, a Delaware incorporated Company, was originally founded in 1998 as a traditional design and build company focused on the water sector in Hungary. From 2000-2006, the Company achieved EUR8 million in revenue annually and constructed over 75 WWT plants. During this period, the Company invested its free cash flow into R&D which would later become the first generation Organica WWT technology. In 2007, Organica sold its traditional design-build business to Veolia Water Solutions, the largest global water company, in order to focus exclusively on the global commercialization of the Organica technology. Veolia currently holds the exclusive license of the Organica WWT technology for deployment in France. The Company was originally founded by Mr. Atilla Bodnár and Mr. István Kenyeres. In 2008, it received its first round of institutional investment from two private equity Funds Cleanwater Partners and Gamma Venture Partners.

The Company is seeking to raise up to US$10 million in a Series B equity round of financing. The proceeds of the financing are intended to accelerate the Company’s growth primarily in emerging markets by (i) hiring sales and marketing resources and establishing distribution partners in emerging markets, (ii) fund new product development, and (iii) for general corporate purposes. The proposed IFC investment in Organica is up to US$4 million in equity (the “Project”).

5.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	5.0

* These investment figures are indicative

Organica Water is headquartered in Budapest, Hungary with field offices in New Delhi and Singapore. The Company is currently active in India, China, Indonesia, Turkey, United Kingdom, France, Hungary, Ukraine and Russia.

1. Improving Water Sanitation and Wastewater Reuse in Emerging Markets: Organica''s wastewater treatment (WWT) technology offers a highly cost competitive, space saving, and decentralized solution to customers. This technology application is particularly attractive in the chosen emerging markets that Organica operates in, where a) urbanization and water quality issues are prevalent; b) WWT infrastructures are relatively new and stakeholders are relatively more open to adopting new WWT solutions; and c) increasing urban population density requires WWT solutions that minimizes footprint whilst aesthetically pleasing/ecosystem-like solutions allow for preservation of land value in the vicinity.

2. Promoting a Decentralized and Distributed Wastewater Solution: In addition to driving resource efficiency on every level- lower energy usage, lower geographic footprint and lower infrastructure costs; Organica''s WWT solution is comprised of botanical garden like structures which blend into the urban landscape with no resemblance to traditional facilities. The sustainable look and feel as well as the smaller infrastructure footprint promote a decentralized and distributed approach towards WWT and contribute to a drive towards urban sustainability in emerging markets.

3. Improving Effectiveness of Wastewater Treatment Solutions: Organica''s utilization of plant roots andits patented artificial media as a special biofilm carrier creates a more diverse and complex biological treatment system that improves treatment efficiency by maximizing oxygen transfer. This ultimately enhances the resilience of the WWT infrastructure against variations in treatment volume and wastewater quality variability.

4. Stimulating Water Technologies Innovation and Resource Efficiency: Organica''s innovative biological treatment solution generates substantial savings in capital cost, operating cost, energy use and physical land use compared to conventional WWT technologies. IFC''s investment will stimulate technological innovation in WWT solutions that addresses energy and resource efficiencies, thereby strengthening its target market''s ability to delivery key infrastructure services and offer decentralized solutions.

1) Early Stage Equity & Mobilization: The Company''s early-stage profile, its plans to grow in emerging markets, and its unconventional base in Hungary, makes it challenging to raise venture capital funding. IFC''s support can play a mobilizing role by leading growth financing for the Company''s expansion.

2) Technical and Industry Knowledge Sharing: IFC can aid the Company as it seeks to do business in India, China, Indonesia, Turkey, Russia and Ukraine. In particular, IFC can leverage its public and private sector contacts in the water industries in these countries and provide significant industry and technical expertise and potential advisory services to the Company.

3) Stamp of Approval: IFC''s investment will enable an innovative wastewater treatment technology to scale up and reach more end users as IFC''s participation will positively influence the perception of the market and public of Organica''s technology and its brand in the markets. In particular, Organica will deploy its solution in emerging markets, where the need for efficient wastewater solutions is the most acute.

4) Introducing Client to New Markets: The Company''s potential customer base is expected to be primarily municipalities, industries and private commercial developers located in emerging markets. IFC has a history of working within the water sector in these countries and can facilitate the Company''s access to such customers particularly in its key strategic markets such as China, India and Indonesia. In particular, IFC see significant opportunities for Organica''s decentralized WWT solutions for many of its private sector clients in Mexico, Caribbean and South America where Organica''s has yet to establish a presence.

5) E&S and Corporate Governance: IFC''s involvement will help this early stage Company to adopt a structured framework to manage its environmental and social policies as the Company expands. In addition, the Company can leverage IFC''s best practices in corporate governance.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Human Resources Policies and Procedures(%)	Human Resources Policies and Procedures(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available
Sewage Customers (#M)	Customers (#M)		Not Available	Not Available	Not Available
Direct Employment (#) - Operations and Maintenance	Employment (#)		Not Available	Not Available	Not Available
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#)		Not Available	Not Available	Not Available
Waste Water Treated (Mm3) - Sewage and Wastewater	M m3		Not Available	Not Available	Not Available

Environmental and social risks and impacts in this project are expected to be limited, so the project is classified as Category B according to IFC''s environmental and social review procedure.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.