Samunnati Secures Rs 133 Crore Debt Funding from Blue Earth Capital

Preeti Bali / 6:36 am / June 17, 2024

Samunnati, a prominent player in India’s agriculture value chain, has successfully raised Rs 133 crore (approximately $16 million) in debt funding from Swiss impact investment firm Blue Earth Capital. This substantial investment marks the largest single debt tranche secured by Samunnati in the first quarter of the fiscal year.

Funding to Strengthen Financial Support for Farmer Collectives and Agricultural Enterprises

The newly acquired funds will be utilized by Samunnati to extend its financial support to a broader network of farmer collectives and agricultural enterprises across India. Founded in 2014, Samunnati has established itself as an integrated platform offering vital financial and advisory services to underserved segments of the Indian agricultural sector.

Addressing Challenges Faced by Smallholder Farmers

Agriculture holds a central position in the Indian economy, contributing significantly to GDP and employment. However, smallholder farmers and participants in the agricultural sector often face difficulties accessing adequate financing and finding suitable buyers for their produce.

Samunnati’s Role in Empowering the Agricultural Ecosystem

Samunnati plays a pivotal role in addressing these challenges by providing crucial financial services, market linkages, and advisory support to over 6,000 farmer collectives and 3,500 agricultural enterprises across 28 states in India. The company’s initiatives include academy programs, commodity research reports, capacity building, financial literacy training, and the promotion of sustainable farming practices.

Focus on Climate-Smart Finance and Sustainability

A significant portion of Samunnati’s active lending portfolio, 22%, is dedicated to climate-smart finance models. The investment from Blue Earth Capital will further strengthen Samunnati’s commitment to supporting smallholder farmers through various climate and sustainability projects.

Leadership Comments

Anil Kumar SG, founder and chief executive of Samunnati, expressed his enthusiasm about the partnership, stating that the credit facility will significantly enhance the company’s efforts to empower stakeholders across the agricultural value chain and improve the lives of smallholder farmers.

Blue Earth Capital’s First Foray into Debt Financing

The investment in Samunnati represents Blue Earth Capital’s first venture into debt financing. Amy Wang, Head of Private Credit at Blue Earth Capital, emphasized the firm’s excitement about partnering with Samunnati to expand their loan book and promote climate-smart agricultural practices. She further highlighted Blue Earth’s commitment to supporting Samunnati’s mission of strengthening the agricultural ecosystem and benefiting millions of smallholder farmers in India.

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