Agri Enterprises
Agri enterprises consist of all those business entities offering products as well as services pertaining to inputs, production, transportation,processing and marketing in agricultural as well as allied sectors such as animal husbandry, fisheries, poultry, forestry and so on. These are for-profit institutions that offer solutions to cater to the needs of value chains operating in the agricultural space.
Approach
Samunnati follows Aggregation, Market Linkage, as well as Advisory services (AMLA) approach. Samunnati facilitates market access through financial and non-financial solutions that enable the enterprises and associated value chains to operate at a higher equilibrium, thereby creating value for all stakeholders.
Samunnati brings in an innovative value chain approach to agricultural lending offering customised solutions, both financial and non-financial. Traditional lending products in the agricultural sector are asset-backed, rigid, parameterised and often fail in ascertaining the creditworthiness of the value chain player. Samunnati leverages on the strength of transactions as well as the existing buyer-seller relationships. A cash-flow based approach is followed, and products are designed to cater to the needs of the client. Risk is mitigated by considering the entire value chain in which any enterprise is functioning, rather than following a transaction-based approach. Samunnati takes up intense client engagement and Deduction at Source (DAS) to reduce the risk further.
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Aggregation
We understand how integral procuring good produce is to the production process. By leveraging the bargaining power that comes with numbers, we help organisations in the agricultural ecosystem source inputs in bulk and at lower costs.
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Market Linkages
Building better market connections is more than just finding a market for the produce. It means leveraging market ties to find the best price for a certain produce.
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Advisory Services
We understand growth is a product of constant evolution and innovation. Through Samaarambh, Samunnati helps Agri startups and Agtech enterprises boost and scale operations with the expertise of industry experts and mentors across the agricultural ecosystem.
Relationships are key to understanding the approach used to enable growth for agri enterprises.Samunnati assesses the creditworthiness of any client through an assessment of the social as well as the trade capital of the entities involved.
Social Capital: Social capital is a strength of trade relationship between a supplier and a buyer. It is defined by the number of years (vintage) from which trade transactions are happening successfully between a buyer and a supplier. More the vintage, stronger is the social capital between two parties and reduces credit risks for a financial institution to enable increased trades.
Trade Capital: Trade capital is a quantum or value of the successful trade transactions between a buyer and a seller over a (time) period. Higher the trade value or quantum, stronger is the trade capital between the two parties. Credit risk of a financial institution reduces with strong social and trade capital, thereby enables banks/NBFCs to facilitate increased (capital infusion) trade transactions.
Solutions
For the agricultural ecosystem to progress, the growth and expansion of agri enterprises is vital. To this end, Samunnati offers customised, agile and transparent solutions to agri enterprises without collateral and with an added advantage of simple documentation.