Agritech start-up ERGOS, which runs a digitised grain bank, said it has enabled its lending partners to disburse over ₹100 crore to small and medium scale farmers and buyers through its credit product over the past seven months.
ERGOS’ credit product 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, which has enabled thousands of farmers in three different States to access institutional credit, leverages data-driven insights and a unique risk scoring matrix that is based on the farmer’s field profile, crop pattern, value of their produce digitized and performance patterns of the crops that are being cultivated by the farmers, the company 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 per cent 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,” said Umesh Gowda, CTO, ERGOS
The company is backed by investors such as Aavishkaar Capital, Chiratae Ventures and British International Investment.
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 ERGOS’ 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 three times in FY24 and building an annual disbursal book of ₹5,000 crore by FY28.”