Samunnati, a Chennai based Agri-Non Banking Financial Company (NBFC) has raised $5 million from Dutch Development Bank, FMO.
FMO, the development bank of the Netherlands subscribed the recent Non-Convertible Debentures (NCDs). FMO offers relevant investment opportunities to businesses focused on environmental sustainability in developing countries.
“We are pleased to announce this debt investment from FMO, the Dutch Development Bank. We share a strong synergy in our focus on agricultural value chains with a view to providing working capital solutions, linkages with markets and advisory services to enable value chains to reach a higher equilibrium,” said Anilkumar SG, MD & CEO, Samunnati Financial Intermediation and Services Pvt. Ltd.
Informal sources had played a major role as the main source of finance for Agriculture value chains. These requirements are generally very exorbitant for microfinance institutions but are small for traditional commercial banks.
To bridge this gap, Samunnati is leveraging the trade capital and social capital and buyer seller relationships through aggregators, non-traditional sourcing, risk assessment and mitigation, supported by cutting edge technology, and successfully structuring a quality business that is sustainable and results in inclusive growth.
“Our vision is to establish that agricultural lending is not risky as long as the products and services are structured specifically for them. In agriculture, cash flows are seasonal and cyclical. The products that you deliver should appreciate that. Secondly, we want to establish the principle of collectives and the power of aggregation.” added Anil.
