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Agri-finance solution provider Samunnati has raised €10 million 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 €5 million 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.
In a statement, the company said it 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.
Samunnati had earlier raised debt financing round of $20 million which was extended by the US International Development Finance Corporation (DFC).
Anilkumar SG, Founder and CEO, Samunnati, said, “We are delighted to partner with FMO and Triodos Bank as this will help us further offer customised 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.”
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.
