Agriculture value chain enabler Samunnati raises Rs 133Cr in debt from Blue Earth Capital

Agriculture value chain enabler Samunnati has raised Rs 133 crore (approx. $16 million) in debt funding from Blue Earth Capital, a Swiss impact investment firm. 

Notably, the investment is the largest single debt tranche secured by Samunnati in the first quarter of the fiscal year.

The funding will enable Samunnati to expand its financial support to a wider network of farmer collectives and agricultural enterprises across India.

Founded in 2014 by Anil Kumar SG, Samunnati is an integrated platform offering financial and advisory services to underserved Indian farmer collectives and agricultural enterprises.

What does Samunnati do?

Agriculture remains central to the Indian economy, accounting for over 16% of the country’s GDP in 2022, and employing 43% of the workforce.

While agriculture financing and market access have improved substantially in recent years, finding adequate financing and suitable buyers remains challenging for smallholder farmers and participants in the agriculture sector.

Samunnati said it plays a crucial role in solving these problems by providing financing, market linkages, and advisory services to more than 6,000 farmer collectives and 3,500 agricultural enterprises across 28 states in India.

The startup does this through a range of initiatives such as delivering academy programs to farming collectives and their promoters, developing commodity research reports, enabling capacity building, improving financial literacy, and embedding sustainable farming practices

This direct, targeted support helps collectives in the country scale their operations and apply more sustainable practices, working to unlock the full potential of Indian agriculture.

At present, climate-smart finance methods account for 22% of Samunnati’s active lending portfolio.

It aims to use the investment to support smallholders through various climate and sustainability projects.

Leadership comments

Anil Kumar SG, founder and chief executive of Samunnati, stated, "This credit facility will significantly bolster our resolve to amplify our efforts, empowering all stakeholders in the agricultural value chain and ultimately transforming the lives of smallholder farmers across India. We look forward to a successful partnership in delivering a sustainable value addition in India’s agricultural sector”.

In the current fiscal year, Samunnati has already secured $5 million (Rs 41 crore) in debt funding from Enabling Qapital through external commercial borrowing. In the previous fiscal year, the company raised a total of $155 million (Rs 1,291 crore) in debt and equity financing.

Investor comments

Blue Earth Capital's investment in Samunnati marks its first foray into debt financing. Amy Wang, Head of Private Credit at Blue Earth Capital, expressed the firm's enthusiasm, stating, “We’re delighted to start our partnership with Samunnati to help expand their loan book and enhance the adoption of climate-smart agricultural practices across their portfolio."

"BlueEarth is proud to support a first mover in agriculture value chain financing in India, and contribute to Samunnati’s overall mission to strengthen the agriculture ecosystem, benefitting millions of smallholder farmers in the country," Wang said.