ET Startup Awards 2020: Samunnati reaps rewards for tackling big challenges

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Samunnati was the overwhelming choice of the jury in the social enterprise category for the sheer scale and complexity of the challenges that the nonbanking finance company (NBFC) is attempting to tackle in agricultural finance through its distinctive market-linkage model.

The fintech lender, which operates in the niche intersection of agri tech and finance, has disbursed loans worth over Rs 4,200 crore, serving 4 million small farmers across 112 districts in the country since its inception in 2014.

“It’s hard not to acknowledge the scale of Samunnati versus the others here. It’s just operating at a very different scale,” said a member of the jury. The panel acknowledged not just what it has achieved, but also the potential for growth.

The company’s social objectives in bridging the credit gap through efficient use of technology also aligns with the government’s financial inclusion mandate through various schemes of Digital India.

Founder and CEO Anil Kumar, a veteran banker with over 27 years of experience, said the NBFC has followed a growth-oriented approach to empower the farming community.

“If this recognition for Samunnati inspires a generation of young entrepreneurs to enter the business of agriculture finance, that would be the greatest acknowledgment for us,” he said, adding that the market for growth and creating meaningful social impact is limitless. The size of India’s agricultural finance market is about $250 billion. While about half the people derive their primary income from agriculture, over 80% are small and marginal farmers.

Unlike traditional lenders financing farm loans, Samunnati doesn’t limit itself to crop owners. It extends credit to all stakeholders in the agricultural supply chain through a model of market linkage.

Additionally, the company, which employees over 500, also provides extensive advisory services to small farmers and suppliers with an eye to educating them into becoming more self-reliant with the use of technology. Most traditional lenders froze all lending when the lockdown started but the startup disbursed loans worth Rs 330 crore in the June quarter.

Samunnati clocked Rs 729 crore in revenue in FY20, a figure that caught the jury’s eye along with the company’s scope and ingenuity. “It’s solving a purpose at scale! We have a clear winner,” said a member of the panel.

The top startup in the social enterprise category has won the confidence of a diverse set of investors including Nuveen, Accel Partners, Elevar Equity and responsAbility. In its latest fund-raising round, the NBFC raised Rs 387 crore in May in a Series D round led by Nuveen, which is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA).

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