Agri Enterprise Samunnati Raises Rs 133Cr Debt from Blue Earth Capital for Agri Value Chain

Samunnati is India’s largest agri enterprise, focused on unlocking the trillion-dollar-plus potential of Indian agriculture while placing smallholder farmers at the center. Established in 2014, Samunnati has rapidly grown to have a presence in more than 100 agri value chains across 28 states in India. Its headquarters are located in Chennai, Tamil Nadu. The company has facilitated over $3 billion of gross transaction value and currently has access to 6500+ Farmer Collectives with a member base of over 8 million farmers. Samunnati aims to impact 1 in every 4 farming households through its network by 2027. The organization offers Agri Commerce and Agri Finance solutions to enhance the efficiency and productivity of the agricultural ecosystem through technology-enabled interventions and collaborative partnerships. Furthermore, it aims to provide smallholder farmers and agri enterprises access to markets through financial intermediation, market linkages, and advisory services.

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Samunnati, an agriculture value chain enabler, has secured Rs 133 crore (approximately $16 million) in debt financing from Swiss impact investment firm Blue Earth Capital. This marks the largest single debt tranche acquired by Samunnati in the first quarter of the fiscal year. The funds will facilitate the expansion of Samunnati’s financial services to a broader network of farmer collectives and agricultural enterprises throughout India. Established in 2014 by Anil Kumar SG, Samunnati provides integrated financial and advisory services to underserved farmer collectives and agricultural enterprises in India.

Agriculture continues to hold a pivotal role in the Indian economy, contributing more than 16% to the GDP as of 2022 and engaging 43% of the workforce. Despite notable advancements in agricultural finance and market accessibility in recent times, securing adequate funding and appropriate markets remains a persistent challenge for small-scale farmers and stakeholders within the agricultural sector. Addressing these challenges, Samunnati has been instrumental in facilitating solutions through the provision of financial support, market connections, and advisory services to over 6,000 farmer groups and 3,500 agricultural businesses spanning across 28 states in India.

The startup achieves this by implementing various strategies. These include conducting academy programs for farming collectives and their supporters, creating commodity research reports, facilitating capacity building, enhancing financial literacy, and promoting sustainable farming practices. This focused support directly assists collectives in scaling their operations and adopting sustainable methods, thereby unlocking the full potential of Indian agriculture. Currently, climate-smart finance methods constitute 22% of Samunnati’s active lending portfolio. The startup plans to utilize this investment to bolster smallholder support through diverse climate and sustainability initiatives.

Anil Kumar SG, the founder and CEO of Samunnati, remarked, “This credit facility will greatly enhance our commitment to intensify our initiatives, thereby empowering all participants in the agricultural value chain and ultimately improving the lives of smallholder farmers throughout India. We anticipate a fruitful collaboration to provide sustainable value to India’s agricultural sector.” In the current fiscal year, Samunnati has already acquired $5 million (Rs 41 crore) in debt funding from Enabling Qapital via external commercial borrowing. Last fiscal year, the company secured a total of $155 million (Rs 1,291 crore) through debt and equity financing.

Blue Earth Capital has embarked on its inaugural venture into debt financing by investing in Samunnati. Amy Wang, the Head of Private Credit at Blue Earth Capital, expressed the company’s excitement, stating, “We are thrilled to begin our collaboration with Samunnati to expand their lending capabilities and promote climate-smart agricultural practices within their portfolio.” She added, “Blue Earth Capital is honored to support a pioneering entity in agricultural value chain financing in India and to aid in Samunnati’s mission to fortify the agricultural ecosystem, ultimately benefiting millions of smallholder farmers across the nation.”

Samunnati, a key player in Indian agriculture, has secured a substantial Rs 133 crore debt financing from Blue Earth Capital to expand its financial services for farmers and agricultural enterprises across India. With agriculture contributing significantly to India’s GDP and employing a large portion of the workforce, Samunnati’s role in providing solutions to funding and market access challenges for small-scale farmers is crucial. The startup’s diverse strategies, focus on climate-smart finance, and successful acquisition of funding from various sources, along with its inaugural venture into debt financing with Blue Earth Capital, underscore its commitment to fortifying the agricultural ecosystem and improving the livelihoods of smallholder farmers in India.