Repository of research about existing players providing funding support to FPOs for collective assets.
Who is funding FPOs for purchase of collective assets?
Non-banking financial institutions
Avanti Finance - 100% digital platform. It provides a white label service to finance providers to collect data, co-create products, and to facilitate transactions. (loan/credit)
They worked with SEWA in Bihar to create a credit product that included granularity in its purpose, such as “starting a vegetable stall.”
They worked with Ekgaon in Madhya Pradesh to create a credit product for ag financing for individual farmers or working capital loan for FPOs. Ekgaon developed community-based aggregators to start value addition.
Lendingkart - non-banking financial company provided no collateral loans for individuals, MSMEs/SMEs, and loan products for women. (loans)
Women’s World Banking found that Lendingkart’s AI credit model does not exhibit gender bias for loan approval, terms, or repayment rates.
MSME / SME loans can be used for operations (buying plant and machinery or opening at a new location), or for working capital and general cash flow. No mention of FPO as MSME/SME.
Maanaveetaya - Lends to microfinance institutions and development projects, with extensive guardrails regarding sustainability and inclusion.
They finance cooperatives and producer orgs (loans)
Criteria include benefit to disadvantaged people, economically viable project with appropriate management & leadership, contribute to the advancement of the community, preference to women beneficiaries who can participate in decision-making, ecological parameters
Jai Kisan - “neo bank” with the Bharat Khata app that provides a one stop solution for financing needs and credit products. Works in value chains of all sizes and with all stakeholders (individuals, businesses, middle men, aggregators, etc.). (credit)
Products include “Buy Now, Pay Later” which basically serves like a credit card with an application process and a $ limit. Serves the ag (dairy, poultry, fishery) and manufacturing industries.
Supply chain financing gives collateral free credit for businesses; affordable interest rates, revolving credit, and end-to-end tech platform.
Non-banking multi-service institutions that provides financial services
Sammunati - Provides collective loans, aggregation, market linkages, and advisory services to farmer groups. (loans, infrastructure loans)
Supports FPOs in sourcing bulk inputs + loans for FPOs to aggregate in bulk.
Catalytic infrastructure loan for FPOs to invest in warehouse machinery, equipment, processing units, etc.
FPOnEXT product includes pre-sanctioned loans, assessment via grading tools, and access to crop and weather alerts, market prices and call center. Plus tech knowledge via agri universities + KVKs.
Dehaat - AgTech start-up providing end-to-end solutions to farming communities, including AI -enabled technologies. Work in Bihar, UP, Odisha and WB in India, service 650,000 farmers. (credit, insurance)
Credit via microfinance for input purchases in partners with leading agro financing institutions
Insurance product development in partnership with leading agro insurance companies
Other services include soil testing & health card, inputs, outputs (harvest and market access), yield forecasting, analytics, advisory helpline
Unnati - provides AI powered tech platform for ag value chain actors. Raised USD $1.7M in pre series round A from Nabventures. Work with FPOs to enable biz expansion via integration of their activities on the tech platform (loans, credit)
Banking services for working capital for farmers
Agronomy services using soil weather and farming history data.
Agri-input services including advisories for planting & input application
Output management services to connect to buyers and provide them working capital
Government lenders / Agribanks
NABARD + Agricultural and Rural Development Banks (ARDBs) - government lending institutions (loans, grants)
FPO support via Producer Organization Development Fund: loan-linked grant for promotion, capacity building & market interventions, and grant assistance
https://www.pmfby.gov.in/ - Gov’t scheme for crop insurance for farmers (insurance). Not a lot of details; seems to be for individuals.
Social Investing, crowdfunding, crowd-lending
PlusPlus from Solidaridad (refer to in-depth notes from Ashu Plus Plus) - crowdfunding via individual investors to specific ag projects. 400+ investors have invested 540,000 Euro) (loans)
The projects are agricultural in nature and involve loans to procure equipment (pumps, tractors, etc.), access to assets (seeds, inputs), or increase production (buy more raw goods from farmers). Recipients include coops and small businesses.
GiveDirectly - (refer in call notes GiveDirectly ) Crowdfunding via individual investors to a village at a time that is in poverty. Unlike PlusPlus or Kiva, individual investor cannot choose loan recipient as to prevent biases. Since 2009, delivered $550M+ in cash directly to 1.25 million families living in poverty. Operations in Kenya, Rwanda, Liberia, Malawi, Morocco, Mozambique, DRC, Uganda, the United States, and Yemen. (loans)
No India or Ethiopia operations FYI
Kiva - Crowdfunding via individual investors. Loan, not donation. 77 countries, 1.9M lenders and over $1.6B in loans given. (loans)
Ag loans focus on assets for individual farmers (buy cattle, feed, etc.). Some loans are to small groups (example: $3000 USD to a group in Senegal to support buy/sell cattle).
No India loans made.
Rang De - Indian P2P lending platform with mission to provide low cost/affordable credit. Funded by angel investors. Not a crowdfunder. Non-banking financial company. (loans)
90% of loan recipients are women. Loan recipients are entrepreneurs & farmers.
Investors can invest in funds (example: Akshayakalpa Fund to support an organic dairy farm enterprise.
EthicHub - Spanish crowd-lending social enterprise that connects small farmers with financing needed to work their land and sell their crops. (loans)
Currently in 3 countries only (Mexico, Brazil, Honduras) and have supported 21 communities
Recipients are organizations (cooperatives, community groups)
Big lenders campaign includes lending on high return projects & investment in specialty coffee
Investors can invest in the Ethix Token - buy protection from investment and also governance decision role in EthicHub
Root Capital - provides finance to agricultural enterprises - $1.6B in 20 years loaned to ag enterprises worldwide. (Refer to notes from call with Root Capital Root Capital) (loans)
Model includes affordable financing to underserved enterprises/SMEs/coops, enterprise capacity to access and manage credit, blended financing models for early-stage + risk mgmt, and demonstrate proven models to strengthen the ag finance sector.
Not in India or Ethiopia; yes in Kenya. Need in-country partner to open operations in a country
Also work in climate action & gender equity
Milaap - Indian crowdfunding platform. Includes campaigns on rural development and agriculture. (donation)
Example: A campaign asked for funds = Rs 500 would create 1 acre of viable horticulture (drip irrigation, land prep, saplings).
Lending to farmer groups is available, including group buy of inputs.
Catapoolt - Indian crowdfunding platform. Seems to be more for development of new ideas. (donation)
Rongo Reaper campaign focuses on developing a crop trimmer.
Give India - Fundraising platform for NGOs, medical emergencies and social causes.
Center for Sustainable Agriculture uses it to raise forms to benefit 5000 farmers and 25 FPOs under the product brand Sahaja Aharam. They provide call center, technical assistance, IT platform with end-to-end farming assistance, organic certification, training, and a FPO hub, but no financing.
FarmFundr - US based farmer-owned crowdfunding platform focused on specialty crops operations in the US. Investors can profit from crop sales and also from land appreciation.
Development agencies and donors
TechnoServe - development NGO with presence in India (tech assistance, links to finance)
Walmart-funded project will facilitate access to finance and post-harvest/storage solutions for FPOs. Will impact 25-30 FPOs and 25,000 farmers (50% women) in AP and Uttar Pradesh.
Other projects in India seem to be about FPO strengthening + technical assistance and women FPO empowerment, but without clear information if this includes access to finance for collective assets.
Refer to notes from Coffee Initiative Technoserve Coffee Initiative
IFPRI Picture Based Crop Insurance project - insurance for individual farmers via smartphone photos that verify damages/losses to crops in a low cost manner and that can integrate crop advisories. (insurance)
Testing in India, Kenya and Ethiopia!
Can facilitate insurance, seeds or credit, on smallholder farmers’ productivity, welfare and resilience, while paying attention to mechanisms through which the technology can reduce—rather than aggravate—inequity and gender gaps.
Partners include BISA, Dvara, KALRO, Acre Africa, CABI, EIAR, and various universities, as well as https://www.hdfcergo.com/
PMFBY scheme is for financial support to farmers
Seems to be for individual farmers, not collectives/FPOs
Research on collective assets
FAO case study on SEWA notes that they are support women organizations access productive assets and self-manage their organizations (committees, groups, cooperatives). SEWA facilitates capital formation through asset ownership and access to financial services (savings, insurance, credit). Social and productive assets (seeds, fertilizer, land, finance, equipment) reduce vulnerability to shocks (resilience). (Refer to notes from call with SEWA SEWA (CIFAR project) )
Tamil Nadu case study organic farming by the Centre for Indian Knowledge Systems defines assets are:
Social assets = relationships with community, gov’t, etc.
Financial assets = savings, banking, loans, etc.
Physical assets = Equipment
Human assets = KSAs on health, ag info, leadership, etc.
Natural assets = water, land, biodiversity, etc.
IFPRO study on Gender, Assets, and Agricultural Development Programs defines assets are listed below and also benefits of productive assets for women:
Access to, control over, and ownership of assets are critical components of wellbeing (Sherraden 1991; Carter and Barrett 2006). Productive assets can generate products or services that can be consumed or sold to generate income. Assets are also stores of wealth that can increase (or decrease) in value. Assets can act as collateral and facilitate access to credit and financial services as well as increase social status. Flexibility of assets to serve multiple functions provides both security through emergencies and opportunities in periods of growth (Deere and Doss 2006). In their study of “voices of the poor,” Narayan et al. (2000: 5) found that “the poor rarely speak of income, but focus instead on managing assets—physical, human, social and environmental—as a way to cope with their vulnerability.” Access to, control over, and ownership of assets including land and livestock, homes and equipment, and other resources enable people to create stable and productive lives. Increasing the nexus of control over assets also potentially enables more permanent pathways out of poverty compared to measures that aim to increase incomes or consumption alone.
These different forms of asset holdings have been categorized as (for our purposes, those in red):
natural resource capital: land, water, trees, genetic resources, soil fertility
physical capital: agricultural and business equipment, houses, consumer durables, vehicles and transportation, water supply and sanitation facilities, and communications infrastructure
human capital: education, skills, knowledge, health, nutrition; these are embodied in the labor of individuals
financial capital: savings, credit, and inflows (state transfers and remittances)
social capital: membership in organizations and groups, social and professional networks
political capital: citizenship, enfranchisement, and effective participation in governance.2
Collective approaches not a panacea; need to pay attention to factors affecting collective action when group-based approaches are used.
Scope:
Do collective assets work or not? Is it true that capital towards collective assets is actually effective? (without the issue of commons)
What should be collective assets? (income generating be collective assets?)
If collective assets, then what kind of collective assets actually work? (e.g., ALC said retail outlets) - can we develop a list of types of collective assets
How are these investments packaged?
Who are the players that actually provide these finds of funding? (e.g., give directly? KIVA? TechnoServe? USAID? Apparently IRRI, CIMMYT has done stuff like this, happy seeder work?)
What have we learned from their experience?