Agriculture finance startup Samunnati raises $20 million in debt from the United States International Development Finance Corporation (DFC) to enlarge its lending activities withinside the 2nd 1/2 of of the continued economic year.
The newly raised capital will assist the organization to enlarge its financing and technical help to low-earnings farmers and firms all through the agricultural value chain in India, Samunnati and DFC stated in a joined declaration shared with ET.
Setuka Partners LLP was the distinctive adviser to this transaction.
Chennai-primarily based Samunnati, which dispensed over Rs 4,000 crore worth of loans since being based in 2014, stated that the debt capital could commonly be used to sanction loans to Farmer Producers’ Organizations and including 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 startup counts Elevar, Accel, ResponsAbility and Nuveen amongst its investors. The new equity spherical concerned the non-financial institution lender raising $fifty five million (approx. Rs 390 crore) in May 2019 in Series D investment from US-primarily based Nuveen that’s 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,” said Ajay Rao, Managing Director – South Asia Region, DFC.
