July 15, 2024: Indian agri-finance startup Samunnati has secured its largest debt tranche of Rs 133 crore ($16 million) from global impact investor, Blue Earth Capital. This funding marks a significant milestone in the firm’s mission to empower smallholder farmers and champion sustainable agricultural practices.
“This investment significantly bolsters our efforts to improve the lives of small farmers through climate-focused and sustainable projects,” said Anil Kumar SG, Founder and CEO of Samunnati. “Partnering with Blue Earth Capital amplifies our impact, driving positive change across rural communities in India.”
Founded in 2014, Samunnati has become a prominent player in the Indian agricultural financing landscape. Their focus on value chain finance empowers marginal, small and medium farmers, agri-enterprises, and wholesalers/retailers with a comprehensive suite of financial, co-financial, and non-financial solutions. Specializing in areas like agri-value chains, financial services, and market linkages, Samunnati is a driving force for a more sustainable and equitable agricultural future in India.
The funding will accelerate Samunnati’s initiatives in several key areas which will include – Collaborations with lenders, international agencies, and government bodies will foster the development of green bonds and thematic lending models specifically designed for climate-smart agriculture.
Samunnati aims to accelerate agri-loan book expansion
Furthermore, it will enable the agri firm to increase its climate-smart financing portfolio, which currently sits at 22% of its active loans.
This investment marks a first for Blue Earth Capital, signifying their entry into debt financing. “We’re delighted to partner with Samunnati,” said Amy Wang, Head of Private Credit at Blue Earth Capital. “Their unique approach delivers high-impact social outcomes while demonstrating remarkable resilience. We’re excited to support their loan book expansion and the adoption of climate-smart practices across their portfolio.”
By providing a comprehensive suite of services, including aggregation, market linkages, and advisory services, Samunnati equips FPOs with the tools they need to thrive. This approach enables FPOs to meet the ever-growing demands of markets, ensuring their produce reaches consumers efficiently.
Samunnati currently has access to 6500+ Farmer Collectives with a member base of over 8 million farmers and envisions impacting 1 in every 4 farming households through its network by 2027.
