S. G. Anil Kumar, who was one of the founding members of IFMR Trust, has rolled out his agri value chain-financing venture Samunnati.
The venture has roped in MicroSave, which has expertise in value chain financing in Indonesia, Latin America and the Philippines, for design and deployment.
To start with, the firm will focus on financing dairy sector.
“I like to set up new things. This venture will look at value chain financing of rural household which spurs an economic activity of a particular district,” S.G. Anil Kumar, MD and CEO of Samunnati, said.
The firm will pilot with its first branch in Thiruvannamalai, which will go live on November 28. Later, it will add 12 more branches.
According to Mr. Kumar, in the dairy sector in each aspect of the value - like cattle for the households, aggregators of milk, transportation, chilling centre, animal feed – there is scope for financing.
Samunnati will act as a business correspondent or loan originator to start with. It has tied up with Edelweiss Financial Services.
“We will be looking to become a non-bank financing company post the pilot, and will look to buy an existing one subject to RBI approval. As of now, we will originate loans for Edelweiss,” said Mr. Kumar. He also added that each branch could generate loans of Rs.2-3 crore in the first year of operations.
