Program Overview
- Ashu Sikri (Unlicensed)
Context
This page was prepared Aug 11 2022 to better describe what we are doing in the funding platform pilots and how that could evolve over time.
We are providing FOs access to collective assets on favorable terms as an incentive for digitization; this is coupled with training / capacity building and tools for digitization / data sharing to accelerate FOs growth and maturity
By end of Sep, want to develop a sense for what is takes to execute this playbook within an FO over 12 months so we can figure out go-forward resource needs / budget.
How much does DG need to invest to execute 15 projects during 2023? How many farmers will we reach?
Right now, DG is doing a lot which is neither sustainable or scalable; “Roles over time” describes which other ecosystem actors we envision partnering with so that we can narrow our focus to core DG capabilities (eg, tools that FOs use for digitization and sharing data, maybe raising capital to subsidize cost of assets)
What / Why | How | Roles over time | Links |
|---|---|---|---|
Provide access to collective asset
| FO leases asset or borrows money to purchase asset. DG will figure out how to keep cost of financing low | - DG partners with leasing business or lender; provides guarantee to help keep cost of capital low | - Leasing model discussion doc - Payback period on assets. See Broom Processing example
|
Provide advisory / training on biz plan + how to use the collective asset + data literacy / digitization
| DG helps develop video based training content and SOPs to ensure effective asset utilization DG validates business plans, esp on offtake for whatever finished goods are being produced by the FO | In theory, resource orgs / POPIs should be supporting on biz plans, offtake, content related to FPO mgmt Leverage govt extension system capability and asset manufacturers to generate training content on the assets DG owns data literacy / training on how to use tools for digitization | Donor screens incl (1) opportunity summary (2) monitoring page FPO video “Roles and Responsibilities of a Shareholder” |
Data capture and management
| DG provides tools to capture key financial and governance docs needed for accessing govt subsidy programs and commercial loans (stored in data wallet / digi locker) DG provides an “asset register” and “procurement calendar” for basic planning and transaction data associated with the asset; may be needed for funders and useful for internal FO transparency (TBD) DG provides an interface to capture critical stats like cash balance, turnover, “FO maturity” (eg, # of shareholders). These stats can be shared internally w members (in-person and virtually) and with funding platform investors (TBD) | FOs may want to use various tools to manage their business (ERP, Tally, iFPO, etc.); DG builds FS connectors with these tools so FOs can leverage the same data across various use cases | |
Use FO data to unlock additional capital (grants and working capital)
| Provide a checklist of requirements for relevant schemes and track progress towards achieving | Resource institution supports FO in securing this additional financing DG provides a place to capture all the relevant records / data (eg, data wallet) and a simple checklist of requirements for certain program (eg, “--% of requirements captured”) | |
Raise capital to finance assets (and capacity building + tech development)
| Pool capital from impact investors who value the livelihood + climate + gender impacts of FO growth. Practically, this could be channeled directly towards capex (if DG is leasing equipment), provide loan guarantees to lenders, etc Find optimal way to leverage DG unresricted funds (loan guarantees, investors who match DG contributions, etc.) | DG serves as a BC and helps FOs access subsidized bank loans for capex (govts support banks who lend to FOs through Priority Sector Lending mandates, interest subvention + loan guarantee programs like AIF) Over time, Philanthropic capital goes towards capacity building and maintaining data capture + mgmt tools | See “Donors” tab on DF outreach sheet |
Continue to build opportunity pipeline and shortlist what collective assets we want to focus on.
| Meet with FOs + resource institutions, host workshops Speak with equipment vendors / manufacturers Refine application process incl video based applications and opportunity scoring methodology | Publish application process and selection criteria to this is more “self service” | See workshop flow from SEWA and Velugu Updated pipeline report |