Agri NBFC Samunnati raises Rs 33-crores debt from Symbiotics

By: |
New Delhi | Published: February 6, 2019 4:53:59 AM

Unlike traditional lenders who tend to focus on crop loans or agricultural input loans, Samunnati has built the expertise needed to assess smallholder farmer needs and design appropriate financial products that are not collateralised. The company leverages the relationships between suppliers and buyers to assess risk and enable financial intermediation.

(Source: PTI)

Chennai-based Samunnati Financial Intermediation and Services, an agri value chain finance firm has executed the issuance of non-convertible debentures (NCDs) aggregating to `33 crore for furthering expansion plans. With this investment, Samunnati becomes the first early-stage agri NBFC to raise five offshore debt investments within a span of seven months.

The NCDs were subscribed by two investment funds managed and advised by Symbiotics, an impact-focused investment firm dedicated to inclusive and sustainable finance in emerging and frontier markets.

The funds will be utilised by Samunnati to build the portfolio by financing the working capital requirements of small-holder farmer organisations and agri-enterprises across the value chain.

Samunnati was founded with a vision to enhancing the value of all players across the agriculture value chain by providing financial intermediation, market linkages as well as advisory services. Unlike traditional lenders who tend to focus on crop loans or agricultural input loans, Samunnati has built the expertise needed to assess smallholder farmer needs and design appropriate financial products that are not collateralised. The company leverages the relationships between suppliers and buyers to assess risk and enable financial intermediation. It offers customised financial products such as working capital loans to community based organisations (CBOs) and receivable finance to agri SMEs, respectively.

READ ALSO | India’s oil trade with Venezuela has gone down since sanctions: Ambassador Augusto Montiel 

Anil Kumar SG, founder & CEO, Samunnati, said, “We are pleased to on-board Symbiotics as a partner in enabling agricultural value chains to reach a higher equilibrium. We see a strong mission alignment between Samunnati’s focus on providing working capital solutions to value chain actors along with market linkages & advisory services and Symbiotics’ stated mission of providing under-served businesses with access to capital.”

For Symbiotics, the transaction in Samunnati serves as another landmark in providing access to capital for small agri businesses in India as the investee promotes innovative financial solutions to meet working capital requirements of agricultural value chain actors in India, making it a unique investment.

Daniel Schriber, head of investments at Symbiotics, said: “We are delighted to establish this new partnership with such an innovative company as Samunnati and look forward to championing the development and growth of small-holder farmer organisations and agri-enterprises along the agricultural value chain in India.” Since its launch in 2014, Samunnati has expanded to 14 states, focusing on 34 value chains and has so far disbursed over `1,400 crore worth of credit, impacting 2 million farmers, indirectly.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop