How Samunnati's Focused Agri-Finance Model Is Changing Rural India
Introduction To Samunnati Financial Intermediation And Services Ltd.
Founded in 2014, Samunnati Financial Intermediation and Services Ltd. is a Non-Banking Financial Company (NBFC) that stands out for its exclusive focus on India’s agricultural sector. With a mission to empower smallholder farmers and strengthen rural communities, Samunnati offers a range of financial solutions tailored to the unique challenges of the agri value chain. The company plays a crucial role in bridging the credit gap for Farmer Producer Organisations (FPOs) and agri-businesses, which are often overlooked by traditional financial institutions. By supporting FPOs — cooperatives that allow small farmers to pool resources and improve their market access — Samunnati is helping to build a more inclusive and resilient rural economy.
Over the years, Samunnati has grown into one of the most trusted financial partners within India’s agricultural ecosystem. As of June 2024, it manages assets worth INR 1,354 crore, with a wide presence across 22 states through more than 100 branches. Its reach extends to over 5,500 FPOs and touches the lives of nearly 8 million farmers and agri-enterprises. The company’s offerings span across working capital loans, term loans, supply chain finance, and trade finance — addressing the diverse needs of the agricultural lifecycle. Through its focused approach and deep understanding of rural markets, Samunnati continues to drive sustainable growth and financial inclusion in India’s heartland.
Board Of Directors Of Samunnati Financial Intermediation And Services Ltd.
As per the latest information, the Board of Directors of Sumunnati includes:
- Anil Kumar SG – Founder and Group CEO
- Gurunath N – Director
- K Krishnan – Independent Director
- Padma Chandrasekaran – Independent Director
- Jyotsna Krishnan – Nominee Director – Elevar
- Mahendran Balachandran – Nominee Director – Accel
- Akshay Dua – Nominee Director – responsAbility
- Stephen Dongwon Lee – Nominee Director – TIAA
Source: Sumunnati Financial Intermediation And Services Ltd.1
Products Offered By Samunnati Financial Intermediation And Services Ltd.
Samunnati Financial Intermediation and Services Ltd. offers a suite of financial products tailored to the unique needs of the agricultural sector. These products are designed to empower Farmer Producer Organisations (FPOs) and agri-enterprises, facilitating growth and sustainability across the agricultural value chain.
1. Input Procurement Loan
This loan assists FPOs in aggregating inputs in bulk, enabling them to procure quality inputs at competitive prices. By leveraging collective bargaining power, FPOs can reduce production costs and enhance efficiency. Samunnati facilitates direct connections between FPOs and large-scale input suppliers, ensuring a smooth procurement process.
2. Output Procurement Loan
Designed to support FPOs in aggregating produce from member farmers, this loan provides immediate payment upon delivery of produce. It ensures that farmers receive timely payments, enhancing their cash flow and encouraging consistent participation in collective marketing efforts.
3. Catalytic Infrastructure Loan
This long-term loan is aimed at FPOs seeking to invest in essential agricultural infrastructure such as warehouses, processing units, and equipment. By financing these assets, Samunnati enables FPOs to add value to their produce, reduce post-harvest losses, and improve market competitiveness.
4. Working Capital and Term Loans for Agri Enterprises
Samunnati offers customized working capital and term loans to agri-enterprises, addressing their operational and expansion needs. These loans consider the seasonal nature of agriculture, providing flexible repayment options aligned with cash flow cycles.
5. Receivable Finance
To address liquidity challenges faced by agri-enterprises, Samunnati provides receivable finance solutions. This product allows enterprises to convert their outstanding invoices into immediate cash, ensuring uninterrupted operations and financial stability.
6. Kisan Pay Card
The Kisan Pay Card is a digital solution for FPO member farmers, offering access to various financial products and services. Each card features a unique 16-digit number and QR code, serving as a digital identity for farmers. Through an associated mobile application, FPOs can manage member registrations, issue cards, and facilitate access to Samunnati's offerings, promoting digital inclusion in rural areas.
These products collectively aim to strengthen the agricultural ecosystem by providing tailored financial solutions that address the specific challenges faced by farmers and agri-enterprises. Through these offerings, Samunnati continues to play a pivotal role in enhancing the resilience and prosperity of India's agricultural sector.
Empowering Agriculture Through The AMLA Approach
Samunnati’s AMLA approach—Aggregation, Market Linkage, and Advisory—focuses on empowering smallholder farmers and Farmer Producer Organizations (FPOs) to create a more efficient and sustainable agricultural ecosystem. By facilitating the aggregation of resources, Samunnati helps FPOs pool agricultural inputs, leading to cost savings and increased bargaining power. This collective model allows farmers to access high-quality inputs at competitive prices, significantly improving productivity and reducing operational costs. Samunnati’s expertise also supports FPOs in managing member coordination, ensuring smoother distribution of resources and outputs.
In addition to aggregation, Samunnati strengthens market linkages to open up new opportunities for farmers. By connecting them directly with buyers, Samunnati ensures that agricultural produce is sold at fair prices while reducing the risk of post-harvest losses. This streamlined supply chain model ensures farmers have better access to markets, creating a more predictable and profitable outcome for their crops. Furthermore, the company provides valuable advisory services, guiding farmers on best practices in crop management, sustainable farming, and overall farm management techniques. This expert guidance helps farmers boost their yields, adopt environmentally friendly practices, and make informed decisions, thereby improving their overall livelihood.
Together, these elements of the AMLA approach contribute to building a more resilient and inclusive agricultural value chain in India. Samunnati’s focus on aggregation, market linkage, and advisory support not only enhances the efficiency of farming operations but also promotes long-term growth and sustainability for rural communities.
Key Strengths Of Samunnati Financial Intermediation And Services Ltd.
Key Strengths of Samunnati (Simplified)
1. Strong Financial Support and Regular Fundraising
Samunnati has a healthy financial foundation. In the first quarter of FY25, it raised INR 25 crore, increasing its total net worth to INFR 789 crore. It also maintains a strong capital adequacy ratio of 21.6%, which means it has enough funds to handle business risks. Earlier, in April 2023, the company raised INR 134 crore and has completed seven equity funding rounds since FY16. As of June 2024, its debt-to-equity ratio stood at 1.7 times, and it is expected to stay between 2 and 2.5 times in the near future — a comfortable level for financial stability.
2. Deep Understanding of Agriculture Sector
Samunnati focuses only on the agriculture sector, which helps it better serve farmers and rural communities. This sector alone is an INR 220 billion opportunity in India. Thanks to this sharp focus, the company has built an active loan portfolio of INR 1,354 crore as of June 2024. Its deep knowledge and experience in agriculture help it design services that meet the unique needs of farmers and agribusinesses.
3. Wide Range of Loan Products
Samunnati offers many types of loans, including working capital loans, long-term loans, and trade finance. It works with more than 5,500 Farmer Producer Organizations (FPOs) and provides loans for every stage — from planting to selling the produce. This variety helps the company serve many different types of customers and lowers the risk of being dependent on any one group.
4. Strong Presence Across India
With over 100 branches in 22 states, Samunnati has a strong presence in rural and semi-urban areas. This wide reach not only helps the company grow but also reduces the risk of being affected by problems in any one region. It allows Samunnati to support farmers and agri-businesses across the country.
5. Technology-Driven Approach
Samunnati uses technology and data to make smarter lending decisions. It relies on digital platforms and analytics to track loans, assess creditworthiness, and manage risks. This tech-led strategy has made the process of giving out loans faster and more efficient, helping Samunnati grow its reach and impact in the agri-lending space.
Source: Crisil2
Financial Snapshot Samunnati Financial Intermediation And Services Ltd.
Source: Source: audited financials, credit rating reports
To arrange the capital, Samunnati Financial Intermediation And Services Ltd. also offers corporate bonds. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CREDIT ‘BBB’ rated bonds of the company that offered fixed returns of up to 13%. To invest in similar, rated, regulated and secured fixed-income opportunities sign-up for Grip Invest today and start earning fixed returns:
References:
1. Samunnati Financial Intermediation And Services Ltd., accessed from: https://samunnati.com/board-of-directors-profile/
2. Crisil Ratings, accessed from: https://shorturl.at/9Ul9A
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