MUMBAI, 1 March 2023: Ergos, India's leading farmer-centric technology platform, backed by Aavishkaar Capital, Chiratae Ventures and British International Investment, that enables farmers to digitise their farm produce and provides them with doorstep access to end-to-end postharvest supply chain solutions, today announced that it has enabled its lending partners to achieve disbursement of over INR 100 crore to small and medium scale farmers and buyers.
This milestone has been achieved through the recent launch of Ergos' credit product for the farming community that has enabled thousands of farmers in 3 different states in India to access institutional credit.
ERGOS' credit product is the first of its kind in India that provides tailor-made credit solutions to small and medium scale farmers and buyers through data backed technology. Unlike conventional loan options, Ergos' platform allows farmers and buyers to access asset backed low-cost credit irrespective of their socio-economic background or limited credit history. The product leverages data-driven insights and a unique risk scoring matrix that is based on the farmer's field profiling, crop pattern, value of their produce digitized and performance patterns of the crops that are being cultivated by the farmers.
Umesh Gowda, CTO, said "The impact of Ergos' GrainBank platform is unprecedented. We have been able to convince farmers to adopt mobile driven technology and engage in transactions using bank accounts electronically as against cash, which also helps farmers to improve the credit score as we had zero defaulters and 100% of loans are being closed on time. This milestone not only sets a benchmark for helping small farmers gain access to credit at competitive rates but also paves the way for a more inclusive and transparent financial system by leveraging technology at farmgate. "
Kishor Jha, Founder and CEO of the company, said "Our vision for the future of agriculture revolves around creating sustainable farming solutions that promote growth and ensure a financially secure future for farmers. We are dedicated to bringing digital technologies to the forefront of the agriculture industry for a more secure farm future. The Eegos' platform is well-equipped to serve farmers all across the country. With a presence in over 50 plus districts and partnerships with banks and local institutions, the company is confident of growing 3x in FY24 and building an annual disbursal book of INR 5,000 crore by FY28."
Ajay Maniar, Partner at Aavishkaar Capital said, "We are extremely encouraged with the progress of Ergos and their pursuit of leveraging technology to resolve some of the key challenges faced by small holder farmers. The leadership team at Ergos has continued to build and execute on their vision of creating Ergos as a "farmerfirst" Grainbank that allows a farmer to store their grains safely, avail instant financing against their stored stock and discover the best market price for their produce, all facilitated via few clicks on the Ergos App. The company has successfully demonstrated its model across multiple geographies and is now well positioned to replicate and scale its model across India whilst creating significant value for the underserved farmer community"
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