Samunnati, an agricultural value chain facilitator, said on Monday that he had Rs 89.6 crores indebted to FMO – Entrepreneurial Development Bank and Triodos Fair Share Fund and Triodos Microfinance Funds – two financial inclusion funds managed by Triodos Investment Management (Triodos IM).
FMO and Triodos IM have each pledged a debt of Rs 44.8 crore to Samunnati Financial Intermediation and Services Pvt Ltd, a non-bank finance company (NBFC) in India, to help the company expand funding and technical assistance to farmers and low-income businesses throughout the year. the country’s agricultural value chain.
“Samunnati works with FPOs on the supply side and farm businesses on the demand side in 19 Indian states. We are delighted to partner with FMO and Triodos Bank as it will help us deliver more tailored financial solutions, utilizing social and business capital to FPOs and SMEs, enabling the agricultural value chain to operate at a higher balance, ”said Anilkumar SG, Founder and CEO of Samunnati.
“The loan will allow Samunnati to expand its reach, as well as deepen engagement with FBOs and agricultural enterprises,” Anilkumar added.
This follows a previous $ 20 million debt financing round that was extended by the American International Development Finance Corporation (DFC).
The company plans to use the funds to provide loans to FBOs and agribusiness SMEs that are currently underserved by the formal financial system.
Founded in 2014, ChennaiSamunnati is a specialist provider of agricultural value chain solutions that provides tailored financial, co-financial and non-financial solutions to producer organizations and agricultural businesses along the value chain.
The company said it worked exclusively in the agricultural sector, with a mission to “make the market work for small farmers” by making value chains operate at a higher balance.
The organization says it works with the belief that for a value chain to function well, all actors in the chain must have access to markets, appropriate financial services and personalized advisory services to meet requirements. of the value chain and align their incentives.
“The loan to Samunnati meets FMO’s goals of improving access to finance in this sector, which is in dire need of more finance,” said Huib-Jan de Ruijter, Director of Investments at FMO.
According to Aditya Mohan, Senior Investment Manager, Triodos Investment Management Asia, “Samunnati is a pioneer in creating a social enterprise focused on improving the life of the farming community. We are happy to strengthen our partnership with Samunnati and support their efforts to build an efficient and equitable agricultural ecosystem. “
Samunnati has already raised equity from Elevar, Accel, ResponsAbility, and Nuveen, and debt financing from a multitude of local and international financial institutions.