5 Agri-FinTechs powering financial growth for Indian farmers
By Gloria Mathias
Agri-FinTech refers to financial technology solutions designed to address the unique challenges of the agricultural sector. In India, these platforms help farmers access credit using alternative data, provide crop insurance, enable digital payments, and streamline supply chain financing. Agri-FinTechs also offer tools for market access, price transparency, and risk management, driving financial inclusion and modernising rural economies.
Agri-FinTech is notably relevant in India as agriculture remains the backbone of the economy, employing nearly 50% of the population. Despite its significance, many farmers struggle with limited access to formal financial services, hindering their growth. With India’s digital transformation rapidly expanding, especially in rural areas, Agri-FinTech platforms are stepping in to bridge this gap. These solutions empower farmers by providing easier access to credit, insurance, and digital payments while improving market transparency and supply chain efficiency, all crucial for boosting productivity and financial inclusion in the agrarian sector.
Listed below are 5 Agri-FinTechs revolutionising agriculture financing in India:
Aggois is an Agri-FinTech startup that provides hassle-free, affordable, and transparent round-the-year financing to farmers through agribusiness by partnering with financial institutions (banks/NBFCs). Currently focused on post-harvest (storage/receivable) and input on credit financing for farmers, its differentiated proposition includes disbursing directly into farmers’ accounts, semi-collateralised funding, and working with unconventional channel partners.
Ayekart is an agrifood FinTech platform that provides supply chain finance solutions to MSMEs and FPOs in the food and agriculture value chain. The platform aligns with the government’s objectives to bring about the desired change in the SME, MSME, and retail segments by empowering traditional businesses and helping bring transparency and credibility to the entire ecosystem.
Hesa is an innovative agri-FinTech startup in India focused on transforming rural commerce through its “phygital” model, combining digital and physical approaches. The company empowers farmers by providing access to financial services, market linkages, and e-commerce solutions. Hesa’s platform connects farmers with retailers and businesses, increasing their earning potential by up to 20%. It leverages a vast network of Hesaathis, which are village-level entrepreneurs, to facilitate transactions in villages. Hesa also helps farmers digitally trade their produce, enhancing rural accessibility to modern technology and markets
Jai Kisan is a FinTech platform de-risking the flow of capital to rural emerging markets by facilitating and providing financing for income-generating purposes. Equipped with a securitisation solution and technologically led value proposition for the sellers of products and services it finances, Jai Kisan is able to distribute loans at meagre rates quickly with minimal paperwork for the borrower while generating the risk-adjusted required rate of returns for the lender.
Samunnati is a Tamil Nadu-based Agri-finance company. Established in 2014, Samunnati offers financial, co-financial, and non-financial solutions to marginal, small, and medium farmers, agribusinesses, enterprises, wholesalers, and retailers. The company specialises in value chain finance, agri-value chains, financial services, non-financial services, agricultural finance, and market linkage.
Also read: Global Transaction Banking Vendors and Landscape Report Q3 2024IBSi FinTech Journal
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November 08, 2024