Another innovative financing partnership between 360 ONE Foundation and Vrutti -Livelihood Impact Partners to augment the agri-value chains of economically vulnerable Farmer Producer Organisations (FPOs) and enhance marginalized farm livelihoods.
Creating resilient FPOs & farmers through Innovative Finance - A 360 ONE Foundation & Vrutti Initiative. Vrutti & 360 ONE Foundation are supporting 3 FPOs across Talasari (Maharashtra), Kanker (Chattisgarh) & Kurnool (AP). Spread across 3 years, 360 ONE Foundation’s support is structured as a revolving fund and technical assistance grant provided to the FPO, which churns the funds during every procurement cycle to enable the FPOs to reach a new set of participants. This fully CSR-compliant innovative grant structure, will not only continue to revolve at the FPO level as working capital but will also unlock access to formal finance for the FPCs starting from Year 2 of the program by using a certain portion of the revolving fund as a guarantee to unlock a formal credit line. The grant is placed in dedicated bank accounts to monitor its usage and churn for the following activities : - The working capital and CAPEX support of the Talasari and Kanker FPOs - Creation of an alternate revenue opportunity through sheep husbandry in the Kurnool FPO. - Technical assistance for value chain strengthening and access to markets in all the 3 FPOs. This grant facility complements other philanthropic funding to the FPC which focuses more on capacity building at the FPC and the individual farmer levels. In Year 1 of the program, 70% of the working capital support across the 3 FPOs is facilitated through the revolving grant facility while the remaining 30% is through the FPO shareholders’ fund. As the program progresses and the FPO books & value chains are strengthened, the share of grant capital will be reduced and instead be leveraged to unlock formal credit through a guarantee. This reduces the FPC’s dependency on grants in a staggered manner and ensures a sustainable transition towards accessing formal financing and markets. This funding is catalytic as opposed to a typical one-time grant, as it can unlock other sources of capital for the FPC to reach more farmers. #WhyThisMatters The FPOs in these rainfed, remote areas face climate risks & limited economic options, making formal credit access costly due to high-risk geography. Thus, a structured intervention is needed to provide low-cost working capital, de-risk value chains, and add value. #PartnershipsForChange #Vrutti #360One 360 ONE 360 ONE Wealth 360 ONE Asset Karan Bhagat Yatin Shah Anshuman Maheshwary Saumya Lashkari Navin Upadhyaya Ronak Sheth Anil Mascarenhas Mardav Gala Sneha Kailash Anup Maheshwari Raghini Badhrinarayanan Raghunathan Narayanan Shiv Kumar Preeta Raghunathan Purnima Jagtiani Bhagvath Chandra T N Bharati M. B. GIRIDHAR GOUD Narasimha Murthy Krishnamurthy Naidu Vrutti -Livelihood Impact Partners Catalyst Management Services