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Samunnati Raises 896 Million INR (10 Million EUR) Debt from FMO -Entrepreneurial Development Bank & Triodos Investment Management

KJ Staff
KJ Staff
Anilkumar SG, Founder and CEO, Samunnati

Samunnati, agri value chain enabler, has raised EUR 10 Million (896million INR)in debt from FMO – Entrepreneurial Bank and Triodos Fair Share Fund and Triodos Micorfinance Funds, two financial inclusion funds managed by Triodos Investment Management (Triodos IM).

FMO and Triodos IM have committed EUR 5 million (448million INR) each in debt to Samunnati Financial Intermediation & 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 India.

This follows the earlier debt financing round of USD 20 Mn which was extended by U.S. International Development Finance Corporation (DFC).

Samunnati is a specialized Agri Value Chain Solutions provider that offers customized financial, co-financial and non-financial solutions to farmer producer organizations and agricultural enterprises across the value chain. Founded in 2014, Samunnati 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 organization 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 customized to suit the requirements of the value chain and align their incentives.

The company plans to use the funds to make loans to FPOs and SME Agribusinesses that are currently underserved by the formal financial system. This financing from FMO and Triodos Bank further endorses Samunnati’s differentiated model that leverages the social capital and trade capital in buyer seller relationships relying on the strength of the transaction in a customised manner by applying non-traditional methods of underwriting.

Anilkumar SG, Founder and CEO, Samunnati said, “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 customized financial solutions, using social and trade capital, to FPOs and SMEs, enabling the agri value chain to operate at a higher equilibrium.

The loan will allow Samunnati to expand the reach as well as deepen the engagement with FPOs & Agri Enterprises.

Huib-Jan de Ruijter, Chief Investment Officer at FMO said“We are very impressed with Samunnati’s work in agriculture value chain finance in India which contributes to empowering Indian farmers and

to making these value chains more efficient. Samunnati aims to provide solutions to all players across the entire value chain through financial intermediation, market linkages and advisory services.

The loan to Samunnati achieves FMO’s goals of improving access to finance in this sector which is in great need of more finance. We are looking forward to making the difference together.”

Aditya Mohan, Sr. Investment Manager, TriodosInvestment Management Asia said“Samunnati is a pioneer in building a social enterprise focused on improving the lives of the farming community. The prevailing pandemic has only further underscored the importance of critical supply chains like food. 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 prestigious local and international financial institutions.

About Samunnati Financial Intermediation & Services Pvt. Ltd.

The term ‘Samunnati’ means ‘collective growth, collective prosperity, collective elevation’. Started in 2014 as the only specialized Agri Value Chain Solutions provider, the organization is steered by one vision ‘to make market work for the small holder farmers’ by making the value chains operate at a higher equilibrium.

The organization leverages on ‘social’ and ‘trade’ capital to offer customized financial solutions to stakeholders across the agri value chain. Samunnati’s growth-oriented approach, known as AMLA [Aggregation, Market Linkages and Advisory services] empowers the agricultural community by supporting them build better market linkages and using relevant technology and skills for growth. Headquartered in Chennai, Tamil Nadu, India, Samunnati has its presence in more than 54 agri value chains spread over 19 states in India.  https://www.samunnati.com

About FMO

FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.

About Triodos Investment Management

Triodos Investment Management (Triodos IM) connects a broad range of investors who want to make their money work for lasting, positive change with innovative entrepreneurs and sustainable businesses doing just that. In doing so, Triodos IM serves as a catalyst in sectors that are key in the transition to a world that is fairer, more sustainable and humane.

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