Agriculture finance startup Samunnati raises $20 mn debt funding from US International DFC

Samunnati, a Chennai-based startup that provides financial, co-financial and non-financial solutions to marginal, small and medium holders including farmers, agri enterprises and wholesale/retailers, announced it has raised $20 million in debt from the US International Development Finance Corporation (DFC), according to the ETtech report.

The startup will use the capital to expand its financing and technical assistance to low-income farmers and enterprises throughout the agricultural value chain in India, Samunnati and DFC said in a joint statement.

Setuka Partners LLP was the exclusive adviser to this transaction.

Samunnati said that the debt capital would primarily be used to sanction loans to Farmer Producers’ Organizations and small and medium agribusinesses.

“Samunnati is working with many FPOs on the supply side and Agri Enterprises on the demand side across 19 states in India,” said Anilkumar SG, founder and CEO, Samunnati.

“We are delighted to partner with DFC 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,” Anilkumar said.

“The DFC is proud to work together with the experienced team at Samunnati and we look forward to collaborating in scaling up the breadth and depth of the company’s operations across India,” said Ajay Rao, Managing Director – South Asia Region, DFC.

Founded in 2014 by Anilkumar SG, Samunnati works with over 250 Community Based Organisations / 100+ Agri Enterprises that are collectively serving about one million predominantly small holder Farmers, in about 112 districts of India.

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