Samunnati Raises $20 Million Direct Debt From U.S. International Development Finance Corporation
U.S. International Development Finance Corporation (DFC) has committed a $20mn direct loan to Samunnati Financial Intermediation & Services Pvt. Ltd., a non-banking financial company (NBFC) in India to help the company expand financing and technical assistance to low-income farmers and enterprises throughout the agricultural value chain in India. Setuka Partners LLP were the exclusive advisors to this transaction.
Samunnati is a specialized Agri Value Chain Solutions provider that offers customized financial, co-financial and non-financial solutions to farmer producer organizations and agricultural enterprises across the value chain. Founded in 2014, Samunnati exclusively works in the agriculture sector, with a mission ‘to make market work for the small holder farmers’ by making the value chains operate at a higher equilibrium. The organization works with a belief that for a value chain to work well, all the actors in the chain need to have access to markets, appropriate financial services and advisory services customized to suit the requirements of the value chain and align their incentives. Samunnati’s value chain financing model expands inclusion of smallholder farmers into the formal financial system while optimizing their costs by enabling agriculture value chains to operate at a higher equilibrium contributing to increased productivity, enhanced earnings, and improved market reach.
Photo courtesy of WBK Photography.