Spotlight Deal

ResponsAbility invests in ag-finance venture Samunnati

Type: Later stage VC

Fund Manager: responsAbility

Date Launched: January 2018

Sector Focus: AgCredit

Region Focus: South and southeast Asia, India

Total Deal Size: undisclosed

Deal Overview

Swiss-based impact investor, responsAbility, invested an undisclosed amount into Chennai-based agri-credit firm, Samunnati. This investment marks the first investment from responsAbility’s new agriculture private equity fund.

With investments from responsAbility, Samunnati will be able to scale their operations and improve their current operations which already reaches 10 states, disbursing $80 million in credit since 2014.

Why This Deal Matters

Credit for agricultural purposes has become widespread in India, and while we’ve seen high-repayment rates across some rural communities, climate change and unforeseen life events can cause many farmers to default and thus fall further into poverty.

Samunnati’s non-traditional approach – which relies on cash flow instead of asset underwriting and social/trade capital – helps ease debt-repayment pressure that has hurt other ag-credit programs. Samunnati’s deal with responsAbility will help propel this type of business model forward and better address rural poverty through agricredit solutions.

Key Stakeholders Involved

responsAbility: responsAbility Investments is an asset management firm in the field of development investments and offers professionally-managed investment solutions to both private and institutional investors. The company’s investment vehicles supply debt and equity financing to non-listed firms in emerging economies and developing countries. responsAbility Investments caters to a large spectrum of industries which include finance, agriculture and energy. The firm was founded in 2003 and is based in Zürich, Switzerland with additional offices America, Europe, Africa and Asia.

Samunnati: Chennai-based Samunnati provides financial inter-mediation, market linkages, and advisory services intended to enhance the value of all players across the agriculture value chain. The company offers a wide range of professional and personal advisory services to the players in the agri value chain finance, facilitates connectivity between the players in the value chain finance, providing assistance on aspects ranging from growth of business to farming techniques and helps to expand the financing for agri activities and improves efficiency through customized financial services.

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