Chennai-based NBFC Samunnati Financial Intermediation and Services Pvt Ltd, which is solely focused on financing agriculture, has raised $4.5 million (Rs. 30 crore) funding from Accel and other existing investors.
Existing investors Elevar Equity and existing institutional shareholder Edelweiss Caps and serial entrepreneur R. Ramaraj also participated in the funding. Elevar had earlier invested $1.8 million in the company’s earlier round of funding.
Samunnati focuses on ensuring financial products available to small and marginal farmers and other micro-entrepreneurs in the agriculture sector. It finances specific points in the agriculture value chain.
Started in November 2014, Samunnati now has 15 branches in Tamil Nadu and Andhra Pradesh. It works with over 65 Community based Organisations and over 35 agri enterprises for extending financial services to their members.
Over the next 3 years, Samunnati plans to upscale the impact of its model by entering in new value chains and expansion across the country.
“The investment raised in this round will help further strengthen our Value Chain Finance approach that will bring about a radical shift in the way agriculture is financed today,” SG AnilKumar, Founder and CEO of Samunnati said.