Agri Value Chain Enabler Samunnati Raises $4.6 Mn Debt Fund From Symbiotics
- Prior to this deal, Samunnati acquired agri-supply chain platform Kamatan in an all-stock deal to position itself as an end-to-end agri-solutions service provider
- he proceeds of the deal are fully allocated towards climate smart agriculture
- The addressable agritech market potential of India is expected to touch $24.1 Bn by 2025, out of which India’s agritech startups have tapped just $204 Mn in 2020
06 August 2021, India: Agritech startup Samunnati announced today that it has raised a debt fund of $4.6 Mn from market access platform Symbiotics. The proceeds of the deal are fully allocated towards climate smart agriculture. Due to this, the deal is also known as the Green Bond.
Prior to this deal, Samunnati acquired agri-supply chain platform Kamatan in an all-stock deal to position itself as an end-to-end agri-solutions service provider. This deal occurred back in April,2021.
Founded in 2014 by Anilkumar SG, the organisation leverages ‘social’ and ‘trade’ capital to offer customised financial solutions to stakeholders across the agri value chain. It provides short-term loans to farmer producer organisations, community business organisations and agri-enterprises and works towards supporting marginal farmers by removing inefficiencies in the agricultural value chain.
Anilkumar SG, founder and CEO at Samunnati said “Samunnati is working with FPOs on the supply side and Agri Enterprises on the demand side across 22 states in India.”
Speaking on the Green Bond, he further added, “This will help us further offer customised financial solutions to entities interested in adopting climate smart and green solutions, using social and trade capital, to FPOs and SMEs, enabling the agri value chain to operate at a higher equilibrium. The Green Bond will enable Samunnati to strengthen the climate resilience across agri-sectors, including that of small and marginal farmers in India.”
Samunnati’s green loans follow Climate Bond Initiative categorisation, in accordance with the Green Bond Principles of Climate Smart Agriculture. The loans are classified under three types of activities- food security, climate resilience and greenhouse gas management.
The Green Bond will be listed on the Luxembourg Green Exchange within the Green Bond section. The proceeds are to be fully used towards a 3-year tenor, senior, local currency loan facility to Samunnati.
According to Inc42 Plus data, the addressable agritech market potential of India is expected to touch $24.1 Bn by 2025, out of which India’s agritech startups have tapped just $204 Mn in 2020, which is less than 1%. Further, in terms of funding, the agritech space has received $467 Mn, from 2014 to H1 2020 combined.
In particular, market linkage agritech startups in India are seeing massive investor interest. This segment bagged $305.2 Mn investment between 2014 and H1 2020, out of the total funding of $467 Mn and is expected to reach a market value of $12 Bn by 2025. Some of the notable startups in this category include WayCool, Origo Commodities, Ninjakart, Crofarm and Agrostar among others.