Samunnati, a non-banking financial company in India dedicated to the agricultural sector, recently borrowed EUR 5 million (USD 6.1 million) each from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a development bank controlled by the Dutch government, and Triodos Investment Management (Triodos IM), a subsidiary of Netherlands-based Triodos Bank, for on-lending to farmer producer organizations (FPOs) and small and medium-sized enterprises (SMEs) in the agricultural sector. Triodos IM is disbursing the funds from two of its financial inclusion vehicles, Triodos Fair Share Fund and Triodos Microfinance Fund.
Anilkumar SG, founder and CEO of Samunnati, said of the deal, “Samunnati is working with FPOs on the supply side and agri enterprises on the demand side across 19 states in India. …[T]his will help us further offer customized financial solutions, using social and trade capital, to FPOs and SMEs, enabling the agri value chain to operate at a higher equilibrium.”
Launched in 2014, Samunnati lends to agricultural firms, facilitates trade relationships between agri-enterprises and producers, and provides technology-driven solutions for increasing efficiency in value chains. The company reported income of INR 4.3 billion (USD 59 million) for the year ending March 2019.
Triodos IM, founded in 1990, manages total assets of EUR 4.9 billion (USD 6.0 billion). In 2019, the company provided debt and equity to approximately 100 financial institutions, which served a total of 19.1 million borrowers in 45 developing countries.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private sector institutions. The entity works toward the UN’s Sustainable Development Goals by funding capacity development as well as placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. During the six months ending June 2020, FMO lost EUR 280 million (USD 330 million) on a total portfolio of EUR 12.7 billion (USD 14.9 billion).
By Bradley Shulman, Research Associate
Sources and Additional Resources
The Economic Times
https://economictimes.indiatimes.com/small-biz/sme-sector/samunnati-raises-eur-10-mn-as-debt-to-provide-loans-to-sme-agri-businesses-fpos/articleshow/80215928.cms
Samunnati homepage
https://samunnati.com/
Triodos IM homepage
https://www.triodos-im.com/
FMO homepage
https://www.fmo.nl/
Samunnati annual report 2018/2019
https://samunnati.com/wp-content/uploads/2020/01/Annual-Report_2019.pdf
Previous MicroCapital article on FMO
https://www.microcapital.org/microcapital-brief-fmo-loans-25m-to-aklease-to-support-renewable-energy-in-turkey/
Previous MicroCapital article on Samunnati
https://www.microcapital.org/microcapital-brief-symbiotics-launches-6-7m-bond-for-samunnati-provider-of-microfinance-market-access-technology-to-agricultural-sector-in-india/
More news on Triodos from MicroCapital
https://www.microcapital.org/?s=Triodos
More news on Samunnati from MicroCapital
https://www.microcapital.org/?s=Samunnati
More news on FMO from MicroCapital
https://www.microcapital.org/?s=FMO
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