Delhi based agriculture logistics group, Sohan Lal Commodity Management (SLCM)’s agri financing arm Kissandhan has raised of INR 29 crore through an issue of non-convertible debentures that were subscribed by AAV Sarl, an affiliate of global impact investment company Symbiotics Group.
Highlighting about the fund, Sandeep Sabharwal, Group CEO, SLCM said, “We have been the pioneers in the field of post-harvest logistics and agri-financing in India. Getting funding from large foreign institutions like Symbiotics Group is a testament of the confidence on the sector and our organisation. It reaffirms our commitment and we will use this funding for reaching out to agriculture fraternity to offer them our financing solutions and help improve their lives.”
SLCM took agriculture financing initiative by making a forward integration into warehouse receipt financing in March 2014 with its NBFC, Kissandhan that provides loans against storage receipts of agriculture commodities. Kissandhan offers financing solutions irrespective of the balance sheet of the borrower just within 24 hours. The emphasis is purely on the agri collateral (the crop) that the borrower pledges and hence it takes away the distinction between the ‘Have’ and the ‘Have nots’ and brings in financial inclusion.
Highlighting the journey of Kissandhan since its inception, Sabharwal added, “With the launch of Kissandhan, continuing the ritual, we again became the first company in this sector to provide finance against farm products after arriving at valuation of the goods stored, using collateral at risk model. Till now, Kissandhan has disbursed loans worth INR 1751 crore to different segments and brought real inclusive growth through availability of credit on agriculture commodities to about 3,83,380 farmers based on an internal study in about 4 years of operations and serviced over 42,225 storage receipts at 307 warehouses till November 30, 2018.”
Kissandhan is a wholly owned NBFC of SLCM Group which has changed the paradigm of collateral financing by financing across diversified agri products whilst being agnostic to balance sheet of the borrower yet complying with the prudential norms of RBI.
Geneva-headquartered Symbiotics Group is an investment company that focuses on emerging, sustainable and inclusive finance.