Financial Services

Tailored value chain solutions based on deeper understanding of the local value chains, Samunnati helps expand the financing for Agri and allied activities and improves efficiency through customized financial solutions. These customized solutions strengthen or solidify linkages among participants in the chain. It improves the quality and efficiency of financing agricultural chains by:

  • Identifying financing gaps existing in the value chain
  • Customize financial solutions to fit the needs of the actors in the chain
  • Use value chain linkages to mitigate risks of the chain and its partners by structured buy-sell contracts and tri-party agreements
  • Establish payment ecosystems to bring in transaction efficiency in the value chains and also reduce financial transaction costs
  • Use payment ecosystem to mitigate operations and credit risk by cash flow trapping at source
  • Provide risk mitigation tools like insurance to mitigate asset, price and income risks.

Using the value chain finance model Samunnati is providing quality, affordable financial services for small-scale producers and other value chain actors since November 2014. The willingness of Samunnati to examine value chain relationships and make financing decisions based on third-party agreements rather than conventional collateral is one of the most significant innovations in expanding agricultural finance to samll farmers and agro-enterprises. The value chain finance model developed and implemented by Samunnati is adaptable to diverse contexts, products, and environments. Samunnati is now expanding its footprint across various food and agri value chains by setting up new Points of High Impacts and new Channels of High Impacts.

Genetic Code

Samunnati leverages the social capital and trade capital in buyer seller relationships via Samunnati Aggregators, through non-traditional sourcing, risk assessment and mitigation, aided by cutting edge technology, thereby building a quality business that is sustainable and can grow.

Impact Matrics:

  • Reduction of Cost of Inputs
  • Productivity Drivers
    • More Value per unit produced
    • More number of units produced per asset
    • More assets under use
  • Increased Member engagement – Existing and New
    • Increase ratio of Active Members / Total Members
    • Increase in new member enrolments

Demand-Supply

Two principle drivers of business are working with CBOs representing the small and marginal farmers at the supply side and Agri Enterprises at the demand side. This integrated approach of the supply side and demand side interventions make Samunnati’s value chain finance model very effective.