Samunnati Raises $9 Mn Debt From Impact Investment Exchange

Featured in inc42

Samunnati will be allotting 7,506 debentures to Impact Investment Exchange’s Women’s Livelihood Bond 6 (WLB VI). The capital will be utilised by Samunnati to lend to farmers to help them increase their income and adopt climate-smart agriculture practices. Samunnati offers market linkage to agri enterprises and small producers and customised financial solutions to farmers.

Agriculture financing startup Samunnati has raised $9 Mn debt funding from Singapore-based Impact Investment Exchange (IIX).

The startup will be allotting 7,506 debentures to IIX’s Women’s Livelihood Bond 6 (WLB VI), as per its filings with the Ministry of Corporate Affairs (MCA). Samunnati will have to repay the amount within four years with a 12.7% interest per annum. The capital will be utilised by Samunnati to lend to farmers to help them increase their income and adopt climate-smart agriculture practices. In December 2023, IIX issued the sixth bond in the WLB Series – $100 Mn WLB6 (WLB VI).

It will invest in countries such as India, Cambodia, Kenya, Vietnam, and Indonesia, with a focus on sectors such as sustainable agriculture, clean energy, microfinancing, SME lending, and affordable housing. Founded in 2014 by Anilkumar SG, Samunnati is an open agri network that connects different stakeholders across the agriculture value chain. It offers market linkage to agri enterprises and small producers and customised financial solutions to farmers.

Samunnati claims to have a presence in more than 100 agri value chains spread over 22 Indian states. The startup currently has access to a member base of over 8 Mn farmers and envisions impacting one in every four farming households through its network by 2027.

As per media reports, Samunnati intends to clock a revenue of INR 6,600 Cr in the financial year ending March 31, 2024 on the back of the deepening reach of both its verticals – agri finance and market linkage businesses.

Earlier, Samunnati bagged $20 Mn debt funding from the US International Development Finance Corporation (DFC) in September 2020 to expand its lending activities.

In 2019, the startup raised $55 Mn in a Series D funding round led by Nuveen, the investment management arm of Teachers Insurance and Annuity Association of America (TIAA).

Overall, Samunnati has raised around $120 Mn in funding till date and counts the likes of Northern Arc and Nuvine Investments, and US International Development Finance Corporation, among others.

In 2021, Samunnati acquired agri-supply chain platform Kamatan in an all-stock deal to position itself as an end-to-end agri-solutions service provider.

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