Zurich, 18 January 2024
FinAGG provides competitive cashflow financing solutions to businesses in industries like fast-moving consumer goods (FMCGs). They have partnered with more than 25 popular brands and help them grow by offering flexible financing options to their retailers and distributors. This enables businesses to access the necessary funds to operate and expand their operations whenever they require it. FinAGG’s services help these businesses manage their cash flow effectively and support their growth.
In addition to its financing solutions, FinAGG also provides business insurance coverage to its clients. This coverage offers protection to micro, small, and medium enterprises (MSMEs) against natural catastrophe risks like floods, cyclones, and earthquakes. It also covers risks such as fire and burglary.
According to the Council of Energy, Environment & Water in India, three out of four districts in the country are considered extreme event hotspots and hence prone to experiencing severe natural disasters. Additionally, approximately seventeen out of twenty people in India are vulnerable to extreme hydro-meteorological disasters.
By offering insurance coverage, FinAGG helps businesses safeguard their assets and mitigate potential financial losses resulting from these events. The company is committed to driving the penetration of business insurances for MSMEs. Their goal is to extend their services to over 1.1 million beneficiaries of climate insurance by the year 2028.
“FinAGG’s unique model and innovative approach leverage technology to provide competitive loans to MSMEs through a seamless digital process. In a short timeframe, FinAGG has emerged as a leading partner to renowned companies across FMCG, consumer electronics, and building materials sectors. These strategic collaborations grant FinAGG access to millions of MSMEs in India. We are excited to collaborate with FinAGG to improve access to financial services, drive growth, and improve the resilience of the vulnerable MSME sector in India,” comments Mahesh Joshi, Head of Private Equity Investments – Asia at BlueOrchard.
IIF II will appoint a representative to the Board of Directors of FinAGG. IIF II will work closely with FinAGG to strengthen its governance, expand its (physical and digital) presence, develop a global network, and foster the development of new products. Furthermore, through its Technical Assistance Facility, IIF II will support FinAGG in designing initiatives focused on improving financial literacy among the target demographic.
IIF II, building upon the achievements of its predecessor, places significant emphasis on leveraging technology to enhance the affordability and accessibility of climate insurance. The goal is to establish a robust ecosystem to facilitate access to climate insurance. This fund, operating as a public-private partnership, stands out as one of the most effective strategies for climate change adaptation known to date. Additionally, the fund extends technical assistance and premium support to its partner companies. It provides growth capital, focusing on market-rate returns, while private investors benefit from risk mitigation measures such as first-loss protection. The fund is an initiative of German KfW on behalf of BMZ.
“This funding round is a testament to the impact we have created. To add to that, we have been able to bring a strong investor partner such as BlueOrchard that shares high synergy with us and is an expert in its domain. We are excited to partner with BlueOrchard to further drive the penetration of climate insurance to our clients,” comments Nipun Kohli, Co-Founder & CEO of FinAGG.
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About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 10 billion across more than 100 countries. BlueOrchard has facilitated access to financial and related services for over 280 million underserved people in emerging and frontier markets as of December 2022. For more information, please visit: www.blueorchard.com.
For further information, please contact:
Tahmina Theis
+41 22 596 47 69
tahmina.theis@blueorchard.com
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