Building a Scalable and Inclusive Agri Network With over 30,000 FPOs in its outreach network, 6,500 engaged in active transactions, and a footprint that integrates 8 million farmers, Samunnati has developed a system that not only "signifies deep trust across the agricultural ecosystem," but also operationalizes "inclusive, last-mile connectivity through FPOs."
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"Samunnati has built one of the largest agri-value chain networks in India," shares Anil Kumar SG, Founder and Group CEO of Samunnati.
With over 30,000 FPOs in its outreach network, 6,500 engaged in active transactions, and a footprint that integrates 8 million farmers, Samunnati has developed a system that not only "signifies deep trust across the agricultural ecosystem," but also operationalizes "inclusive, last-mile connectivity through FPOs."
By aggregating demand and supply, the company enables these FPOs to access "tailored financial services and market linkages," which have helped "reduce costs, improve market access, and drive farmer prosperity at scale."
Among its suite of offerings, one product stands out. "Samunnati introduced the Instant Preapproved Loan (IPL), a first-of-its-kind product designed specifically for newly formed FPOs with no credit or transaction history."
Anil explains how IPL's minimal documentation, quick access, and customized design are critical for new FPOs. Acting as a starter credit product, it helps build credit history and improves borrowing capacity over time.
The impact is tangible. "The IPL product has transformed the landscape by making thousands of new FPOs institutionally creditworthy," says Kumar, allowing them to evolve into financially sustainable, market-ready entities.
While operational issues are part and parcel of any business, Anil highlights the deeper challenges that exist. "The biggest hurdles in our business stem from fundamental structural issues inherent to the agricultural value chain surrounding smallholder farmers."
One major issue, according to Anil, is the lack of customized financial and trade solutions aligned with the highly seasonal nature of agriculture. Samunnati responds by "designing tailored solutions aligned with the specific cash flow patterns of different crops," thus enhancing repayment capacity.
Another problem is scale. The fragmented and dispersed nature of smallholder farmers and agri enterprises limits scale and bargaining power. To overcome this, Samunnati leverages the power of aggregation through Farmer Producer Organizations, thereby reducing transaction costs and improving price realization.
Finally, the absence of suitable underwriting models for FPOs has hampered credit flow. Samunnati tackled this by "developing robust in-house underwriting capabilities that combine social capital and trade capital of FPOs." This, Anil says, "transforms FPOs into credible financial entities and emerging asset classes."
The cumulative result? "These solutions create significant entry barriers for others," while ensuring "scalability, risk mitigation, and sustainable growth."
"Samunnati's journey toward profitability is anchored in a multi-pronged strategy focused on sustainable growth and operational efficiency," Anil says.
• Year of inception – 2014
• No. of employees – 550+
Revenue for FY 2024-25: ~$850 Mn
External funding: $46.5 Mn
