THD NewsDesk, Chennai: The non-banking finance company, Samunnati, has raised a $20 million debt from International Development Finance Corporation. The company intends to utilize the fund to provide loans to FPO’s and Agribusinesses currently under dire need. Setuka Partners LLP helped in the smooth transaction process.
In a joint press statement, Inc42, Samunnati and DFC said that the newly raised capital would increase the lending and finance prospects for small farmers and enterprises that need assistance to develop. It will also supplement the agricultural string in the country.
Founder and CEO of Samunnati, Anil Kumar SG commented,
“Samunnati is working with many FPOs on the supply side and agri enterprises on the demand side across 19 states in India. We are delighted to partner with DFC as this will help us further offer customised financial solutions, using social and trade capital, to FPOs and SMEs, enabling the agri value chain to operate at a higher equilibrium.”
Founded in 2014, Samunnati has been associated with the agricultural sector and has been integrally involved with 54 agri value chains spread over 19 states in the country.
Ajay Rao, Managing Director – South Asia Region, DFC said,
“The DFC is proud to work together with the experienced team at Samunnati and we look forward to collaborate in scaling up the breadth and depth of the company’s operations across India.”
A report by Rabo foundation, namely “The Role of Tech-Enabled Formal Financing in Agriculture in India’ noted that over 50% of India’s small and marginal farmers have no access and do not get financial assistance from any tech or conventional means. The lack of aid leads to a stream of problems in production and income.
However, the lack of access to such means opens up the possibility for agritech startups to provide loans to small and marginal farmers with the help of the following technologies:
- Satellite imagery
- Soil testing
- Climate forecasting tools
- Wearhouse-sourced loans, among others
Some of the known names among the Agrotech startups are :
- Sagri
- Samunnati
- Arya
- Jai Kisan
- DeHaat
- FarMart
- Kissht
- Bijak
Samunnati has previously raised equity financing from prestigious bodies like Elevar, Accel, ResponsAbility, and Nuveen, striving to enrich and strengthen the agricultural chain.
