Agriculture finance startup Samunnati has raised $20 million (approx. Rs 146 crore) in debt from the US International Development Finance Corporation (DFC) to develop its lending actions in the second half of the continued fiscal yr.
The newly raised capital will assist the corporate to develop its financing and technical help to low-earnings farmers and enterprises all through the agricultural worth chain in India, Samunnati and DFC mentioned in a joined assertion shared with ET.
Setuka Partners LLP was the unique adviser to this transaction.
Chennai-based Samunnati, which disbursed over Rs 4,000 crore value of loans since being based in 2014, mentioned 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,” mentioned 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 mentioned.
The startup counts Elevar, Accel, ResponsAbility and Nuveen amongst its traders. The newest fairness spherical concerned the non-financial institution lender elevating $55 million (approx. Rs 390 crore) in May 2019 in Series D funding from US-based Nuveen which is the funding arm of Teachers Insurance and Annuity Association of America (TIAA).
“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,” mentioned Ajay Rao, Managing Director – South Asia Region, DFC.
Samunnati, which is targeted on agriculture financing, has expanded its presence to over 112 districts in the nation the place it serves collectively about 4 million small farmers in partnerships with neighborhood associations and agri-enterprises.