Agri value chain enabler Samunnati appoints bankers for $100 mn growth fundraise

Agri value chain start-up Samunnati has hired investment bankers to kick start a new growth stage equity fundraising.

The Chennai-based company has mandated Kotak Investment Banking and InCred MAPE to raise $100 million Series E round, Anilkumar SG, Founder and CEO of Samunnati told Business Today.

The fresh capital will go into growth initiatives of its core businesses of agri-finance and agri-commerce besides investing on technology, he said.

Founded in 2014, Samunnati underwrites loans for Farmer Producer Organizations (FPOs). It works with 1500 FPOs that collectively engage with 6 million small holder farmers. On the demand side, the company offers financial solutions for agricultural enterprises that want to procure commodities and goods in bulk. It offers offering market linkage between agri businesses on the demand side with FPOs on the supply side.

Anilkumar said the company has done over $1 billion in gross transaction value collectively through its agri finance and agri commerce till date. He said the company is at Rs 450 crore of monthly run rate, which is equally contributed by disbursements and market linkage services.
 
With 650-strong team, Samunnati has presence in more than 100 agri value chains spread over 22 states in India.
 
“Our engagement with the FPOs has got entrenched deeply. The larger ecosystem, especially on the demand side, which has an interest in the farm-gate procurement are keener to engage with us now,” he said.

Samunnati is one of the enterprises that ecommerce giant Flipkart is engaging with to reach out to FPOs improve access to staples on the marketplace platform.

It acquired agri-supply chain platform Kamatan to improve its FPO footprint in the central and northern parts of the country.
 
The company recently launched an insurance initiative named Annadata Suraksha Abhiyaan (ASA) to cover farmers from daily farming risks.

Also read: Here's why Anand Mahindra wants to fund this up-and-coming Indian start-up

Also read: NoBroker becomes India's first proptech unicorn, plans heavy investment on apartment management services