Agri-tech company Origo Commodities and fintech NBFC Vivriti Capital today announced their partnership to provide financing support of up to ₹2 crore at affordable interest rate to FPOs, farmers and agriculture produce suppliers.
Using its innovative eMandiCash platform, Origo Commodities is aiming at further increasing its penetration in rural India and disburse at least ₹100 crore through this partnership by end-March, 2023.
Origo aims at making eMandi Cash platform as a bridge between the agri producers and banks or NBFCs, helping suppliers and farmers get access to finance and helping banks and financial institutions capture the agri-PSL sector.
eMandi Cash by Origo is a first digital platform emphasized on supply chain fulfilment and financing. It is a collateral free supply chain financing for vendors particularly in local mandis and connecting the formal framework of banks and NBFCs to people who really need the money.
“With the Vivriti partnership, we plan to expand the supplier network who have credit lines accessible via us in order to ensure they have the required finance to grow their business,” said Ms. Sanya Agarwal, GM, Corporate Strategy, Origo Commodities.
Vishal Suryawanshi, VP, Credit, Vivriti Capital said; “We are excited to partner with Origo eMandi for supply chain finance of the entities on their platform. This will allow us to offer financing vendors/buyers, agri-suppliers, FPOs and FPCs in the agri value chain. Vivriti Capital’s mission is to enable debt funds for the Mid corporate enterprises (anchors) and their eco-system. The overall market potential is over $150 billion. Vivriti Capital has provided digital supply chain financing of over ₹1,500 crores to over 500 dealers and vendors across India. We have been working with various anchors in manufacturing, services, trading, supply chain platforms. ”
While the target is to provide financing to FPOs and agri suppliers all across India, for now, the focus would be on Bihar, Madhya Pradesh, Uttar Pradesh, Maharashtra, Gujarat, Haryana, Andhra Pradesh, Telangana, Karnataka, Rajasthan, Kerala and Tamil Nadu, the company said.
“Given our current traction, we provide credit upto Rs 100 crore to our supplier network within FY 2022-23,” Agarwal added.
“Ours is a first fully digital product focussed on agri priority sector lending built with main intent of penetrating in PSL segment to provide financing where we really need liquidity in right place. It will be an end to end digital journey from credit request, document collection to loan agreement, disbursal as well as collection, said Agarwal.
Origo had previously tied up with several NBFCs and banks previously for its buyers focused products – Procure Now and Structured Trade Finance.
The tie-up with Vivriti Capital for eMandiCash is Origo’s first for supplier focused product.
On similar tie-ups with more lenders, Agarwal said as the credit extended under the programme forms part of priority sector lending for agriculture, some banks and NBFCs have shown keen interest in partnering with Origo.
Elaborating further, Agarwal said Origo eMandi is set to penetrate further in the credit deficient areas and make a larger impact on the 70 per cent of rural households’ dependent on agriculture for their livelihoods by providing them payments ahead of time.
Origo eMandi Cash is a great opportunity for the banks and NBFCs to increase their market reach to service the priority sector through a digital platform, – targeting a sector worth ₹24 lakh crore.
“Moreover, we at eMandi Cash, are also committed to provide lenders (Banks, FIs) with powerful dashboards to track their exposure and loan book in real time using the Data Science model,” Agarwal said.
As per latest NABARD report, the aggregate priority sector credit potential estimated for FY2022 is ₹38.4 lakh crore, of which the estimate for agriculture and allied sectors is ₹24 lakh crore. The target for FY2022 is pegged at ₹16.5 lakh crore in the latest Union Budget.