Samunnati sees urgent need for working capital for FPOs

Samunnati, an agricultural value chain facilitator, has seen a huge demand for working capital from OPAs (agricultural producer organizations).

He said his new instrument, Samunnati Instant Pre-approved Loans (Sam IPL), which targets FPOs and farmer collectives, has received a good response.

The loans, which are offered without seeking collateral, are capped at ₹5 lakh and offered through a digital window.

Although it does not ask for guarantees, the digital platform has a quick verification of CIBIL score, validation of PAN details. It only takes a few minutes to verify the details and send a principle sanction letter. “We do not ask for any guarantees. We managed to disburse ₹37 crore to around 600 FPO in just nine months and this shows the demand for such loans,” said Pravesh Sharma, Director of Samunnati Agro. Activity area by telephone.

“While we ended the year with ₹33 crore, the momentum continued through April 2022, helping us break through the ₹37 crore mark,” he said.

Seeing a huge demand for the working capital needs of OPAs and farmer collectives, the company plans to reach out to another 600 OPAs this year.

“It is clear that the next wave of the digital revolution will come from rural India and our FPO Gateway aims to be at the forefront of enabling this revolution for FPOs,” said Anil Kumar SG, Founder and Managing Director of Samunnati Agro.

More than 1,500 farmer collectives have registered on its FPO gateway. The Chennai-based company is active in over 100 agricultural value chains spread across 22 states across the country.

Published on

April 26, 2022