Samunnati Financial Intermediation & Services Pvt Ltd will raise €10 million (about $12 million or Rs 89 crore) in debt funding.
The non-banking financial company (NBFC) will raise this capital from Dutch development finance institutions FMO and Triodos Investment Management.
Both have committed about $6 million each to Samunnati, the NBFC said in a statement. Prior to this, Samunnati raised $20 million in debt financing from the United States International Development Finance Corporation in September, according to VCCEdge.
The company will use this fresh capital to help expand its financing and technical assistance solutions to low-income farmers and enterprises throughout the country’s agricultural value chain.
This will involve providing loans to underserved farmer producer organisations (FPOs) and agribusiness-based small and medium enterprises.
Samunnati was set up in 2014 by Anilkumar SG, who also serves as its chief executive officer.
“We are very impressed with Samunnati’s work in agriculture value chain finance in India which contributes to empowering Indian farmers and to making these value chains more efficient,” FMO chief investment officer Huib-Jan de Ruijter said, adding that the financing is also in line with the development finance institution’s goal of improving access to finance in the agriculture space.
Samunnati has raised debt financing from other domestic and international organisations. According to VCCEdge, equity investors in the company include Elevar Equity, Nuveen, Accel, and responsAbility.
The NBFC reported consolidated net sales of about Rs 714 crore and net profit of around Rs 12 crore for the 2019-20 financial year, as per VCCEdge data.