Agritech company Origo Commodities announced Tuesday that it has partnered with fintech firm Vivriti Capital. Vivriti Capital will provide unsecured loans of up to Rs 20 crore to farmers, agricultural traders and FPOs.
The aim is to pay out at least Rs 100 crore using Origo Commodities’ digital platform by March 2023, according to a company statement.
Founded in 2011, Gurugram-based Origo Commodities is an agri-fintech company focused on commodity supply chains, post-harvest management, trade and finance.
“We have partnered with Vivriti Capital to facilitate unsecured loans to farmers, traders and Farm Producer Organizations (FPOs). We help farmers and traders find buyers for their produce. Financing is in the form of a billing discount.
Origo Commodities conducts credit risk assessments of suppliers and also checks the quality of produce, she added.
Agarwal said the loans will come at interest rates of around 16-17%.
“Buyers generally take longer to pay. Until then, farmers and traders faced liquidity issues. Once the buyer makes the payment, the loan amount will be paid,” she said.
Agarwal said the company will partner with more banks and NBFCs (non-bank finance companies) to facilitate this digital lending. We are already facilitating financing for warehouse receipts.
Origo will use the eMandi Cash platform as a bridge between agricultural producers and banks or NBFCs to enable suppliers, farmers and FPOs to access finance and help banks and financial institutions to win the agricultural PSL sector. It’s a schedule.
Agarwal said Origo will have a greater impact by penetrating further into credit-starved areas and providing upfront payments to 70% of rural households that depend on agriculture for their livelihoods.
The eMandi Cash platform will give lenders a powerful dashboard to track exposures and loan books in real time using data science models, she said.
Vishal Suryawanshi, vice president of credit at Vivriti Capital, said it aims to provide much-needed debt financing to hundreds of medium-sized companies across India.
Over the past five years, Vivriti Capital has built a highly successful franchise with a 5,000 kroner portfolio and over 300 clients across 35 sectors and over 20 states.
The two partners will focus on Bihar, Madhya Pradesh, Uttar Pradesh, Maharashtra, Gujarat, Haryana, Andhra Pradesh, Telangana, Karnataka, Rajasthan, Kerala and Tamil Nadu .
(This article is not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
