responsAbility-managed agriculture equity fund makes first investment

Zurich, 15 January 2018 — A responsAbility-managed private equity vehicle focusing on agriculture and food has completed its first investment and taken a significant minority stake in Samunnati, an Indian Non Banking Financial Company. Using a unique cash-flow-based lending technology for value chains, Samunnati is providing affordable quality financial services for small and marginal farmers and small and medium-sized businesses active across the agriculture value chain.

The Indian agricultural sector needs more than USD 50 billion of credit every year. The financial constraints in agriculture remain pervasive, and the availability of credit is inequitably distributed and expensive; adversely impacting the productivity of small and marginal farmers.

Chennai-based Samunnati aims to provide solutions to all players across the agricultural value chain by providing financial intermediation, market linkages and advisory services.

Founded in 2014 by an experienced Indian banker, Samunnati has disbursed some USD 80 m in credit in just two years of full-fledged operations, achieving a 300% year-on-year growth. The company has expanded to 10 states operating across 12 value chains and engaging over 250 community-based organisations and agri-enterprises. With its innovative business model and unique cash-flow based lending, Samunnati has not only been able to build a scalable business model but also has achieved and sustained best-in-class portfolio quality.

Speaking on behalf of responsAbility, Rik Vyverman, Head of Agriculture Equity Investments, said: “Agriculture and food is one of the key focus sectors for responsAbility globally and this is the first investment from our recently closed food and agriculture private equity fund. Samunnati is a unique institution addressing the existing financing gap in the Indian agricultural sector through a scalable and efficient business model. Anil’s strong experience in the agriculture sector along with the professional management team are the backbone for Samunnati’s success.”

Anil Kumar SG, Founder & CEO, Samunnati Financial Intermediation & Services Pvt Ltd, added: “We are proud to partner with a global investor like responsAbility. Samunnati is now a lender of first choice for many institutions in the agriculture space given our focused approach and product offerings. We look forward to leveraging responsAbility's global development investment experience to further Samunnati’s approach towards making agricultural value chains operate at a higher equilibrium, thereby providing value to millions of small and marginal farmers and build it as one of the top financial institutions in India with exclusive focus on agriculture and allied activities."

About Samunnati (samfin.in) Chennai-based Non Banking Financial Company Samunnati Financial Intermediation and Services Pvt Ltd is focused on financing agricultural value chains. The company aims to enhance the value of all players across the value chain by providing financial intermediation, market linkages and advisory services. Founded in 2014, Sammunati operates across 10 states and 12 value chains, engaging over 250 community-based organisations and agri-enterprises.

Samunnati stands for inclusive growth and works with a belief that for a value chain to work well, all the chain actors need to have access to formal financial instruments customized to suit the requirements of the value chain as well as the stakeholders operating within – thereby making the value chains operate at a higher equilibrium.

About responsAbility Investments AG (responsAbility.com) responsAbility Investments AG is a leading asset manager in the field of development investments and manages a range of investment vehicles that supply private debt and private equity to high-impact portfolio companies in the agriculture, energy and finance sector of emerging economies.

responsAbility has USD 3 billion of assets under management invested in 540 companies in 90 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market and its own employees. responsAbility is regulated by the Swiss Financial Market Supervisory Authority FINMA.

Contacts

Samunnati Financial Intermediation and Services Pvt Ltd Nitin Chaudhary, Head Strategy and Investor Relations +91 44 6565 4121 nitin.chaudhary@samfin.in