Samunnati, an agri value chain enabler, on Monday said it has raised Rs 89.6 crore in debt from 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 committed Rs 44.8 crore each in debt to Samunnati Financial Intermediation and Services Pvt Ltd, a non-banking financial company (NBFC) in India, to help the company expand financing and technical assistance to low-income farmers and enterprises throughout the agricultural value chain in the country.
“Samunnati is working with FPOs on the supply side and agri enterprises on the demand side across 19 states in India. We are delighted to partner with FMO and Triodos Bank 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,” said Anilkumar SG, Founder and CEO of Samunnati.
"The loan will allow Samunnati to expand the reach, as well as deepen the engagement with FPOs and agri enterprises," Anilkumar added.
This follows an earlier debt financing round of $20 million that was extended by the US International Development Finance Corporation (DFC).
The company plans to use the funds to make loans to FPOs and SME agribusinesses that are currently underserved by the formal financial system.
Founded in 2014, Chennai-based Samunnati is a specialised agri value chain solutions provider that offers customised financial, co-financial, and non-financial solutions to farmer producer organisations and agricultural enterprises across the value chain.
The company said it exclusively works in the agriculture sector, with a mission ‘to make market work for the small-holder farmers’ by making the value chains operate at a higher equilibrium.
The organisation claims that it works with a belief that for a value chain to work well, all the actors in the chain need to have access to markets, appropriate financial services, and advisory services customised to suit the requirements of the value chain and align their incentives.
“The loan to Samunnati achieves FMO’s goals of improving access to finance in this sector, which is in great need of more finance,” said Huib-Jan de Ruijter, Chief Investment Officer at FMO.
According to Aditya Mohan, Senior Investment Manager, Triodos Investment Management Asia, “Samunnati is a pioneer in building a social enterprise focussed on improving the lives of the farming community. We are glad to strengthen our partnership with Samunnati, and support their efforts to build an efficient and equitable agri ecosystem.”
Samunnati has previously raised equity financing from Elevar, Accel, ResponsAbility, and Nuveen, and debt financing from a host of local and international financial institutions.
Edited by Suman Singh
Link : https://yourstory.com/2021/01/funding-alert-agri-value-chain-enabler-samunnati-fmo-triodos-im
Author :- Sujata Sangwan ( )
January 11, 2021 at 05:13PM
YourStory