Funding for Climate Projects
Agri-finance startup Samunnati has secured its most significant debt tranche, receiving Rs 133 crore ($16 million) from Blue Earth Capital, a global impact investment firm. This critical funding will further Samunnati’s efforts to enhance climate and sustainability projects in rural communities across India.
Strengthening Climate and Sustainability Efforts
Anil Kumar SG, founder and CEO of Samunnati, expressed his enthusiasm for the partnership with Blue Earth Capital. “This boost will strengthen our efforts to improve the lives of smallholders through climate and sustainability projects. Their partnership empowers us to amplify our impact, driving positive change in rural communities,” he said.
The funds will support various initiatives collaborating with lenders, international agencies, and government bodies. These initiatives include green bonds, thematic lending models, and credit guarantee coverage programs, all aimed at building a climate-smart compliant portfolio. Notably, 22% of Samunnati’s active portfolio is already dedicated to climate-smart financing.
Blue Earth Capital’s First Debt Investment
Blue Earth Capital, a Switzerland-based impact investment firm, marks its first debt investment with this partnership. Amy Wang, Head of Private Credit at Blue Earth Capital, shared her excitement: “We are delighted to start our partnership with Samunnati to help them expand their loan book and enhance the adoption of climate-smart agricultural practices across its portfolio. We are very impressed with Samunnati’s unique high-impact social outcomes while demonstrating strong resilience throughout different market conditions.”
Recent Funding Milestones
Earlier this financial year, Samunnati secured $5 million (Rs 41 crore) from Enabling Qapital. This adds to an impressive funding streak in FY 23-24, during which the company raised $155 million in debt and equity.
Founded in 2014, Samunnati has provided financial, co-financial, and non-financial solutions to marginal, small, and medium farmers, agri enterprises, and wholesale/retailers. The company specializes in value chain finance, agri-value chains, financial services, non-financial services, agricultural finance, and market linkage.
Expanding Impact on Rural Communities
With the new funding from Blue Earth Capital, Samunnati aims to expand its impact on rural communities further. The collaboration will focus on promoting climate-smart agricultural practices crucial for sustainable development. These practices help farmers adapt to climate change, improve productivity, and enhance resilience against climate-related risks.
The infusion of funds will also enable Samunnati to expand its loan book, providing more financial support to farmers and agri-businesses. This expansion is expected to lead to greater adoption of sustainable farming practices, contributing to environmental conservation and improved livelihoods for farmers.
Enhancing Climate-Smart Financing
Samunnati’s approach to climate-smart financing involves integrating environmental sustainability into its financial products. This includes offering loans and financial services that promote renewable energy, water conservation, and sustainable farming techniques. By focusing on these areas, Samunnati aims to create a positive environmental impact while supporting the economic development of rural communities.
The partnership with Blue Earth Capital will also facilitate the development of innovative financial products designed to meet the needs of farmers and agri-businesses. These products will be tailored to support climate-smart agriculture, ensuring farmers can access the necessary resources and technologies to implement sustainable practices.
Promoting Sustainable Agricultural Practices
One of the critical goals of the partnership is to promote sustainable agricultural practices that reduce greenhouse gas emissions and enhance biodiversity. Samunnati plans to work closely with farmers to implement crop diversification, conservation tillage, and integrated pest management practices. These practices help improve soil health, increase crop yields, and reduce the environmental impact of farming.
In addition to promoting sustainable practices, Samunnati will also focus on providing training and education to farmers. This will include workshops and seminars on climate-smart agriculture, helping farmers adopt new techniques and technologies to improve their productivity and sustainability.
Building a Resilient Agri-Value Chain
Samunnati’s commitment to building a resilient agri-value chain involves supporting all stakeholders in the agricultural sector, including farmers, agri-businesses, and market intermediaries. Samunnati aims to strengthen the entire value chain by providing financial and non-financial services, ensuring it is more resilient to climate change and other challenges.
The partnership with Blue Earth Capital will enable Samunnati to scale its operations and reach more farmers and agri-businesses. This will help create a more inclusive and sustainable agricultural sector, benefiting both the environment and rural communities.
As Samunnati continues to expand its impact, the company remains committed to promoting sustainable development in rural communities. The partnership with Blue Earth Capital marks a significant milestone in this journey, providing the necessary resources to scale its operations and enhance its impact.
With a strong focus on climate-smart agriculture, Samunnati is well-positioned to promote sustainable farming practices in India. The company’s innovative approach to financing and commitment to environmental sustainability make it a key player in the agricultural sector.
As Samunnati looks to the future, the company plans to continue building partnerships and securing funding to support its mission. By working together with stakeholders, Samunnati aims to create a more sustainable and prosperous future for rural communities across India.
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