UditVani, Jamshedpur: Foxhog Ventures India, focussed on financing of Small, Medium and Micro businesses in India, particularly agricultural and women-centric enterprises, today announced the launch of its branch office in Jamshedpur, Jharkhand. The company aims to target 5,000 farmer families by FY24 in this region.
The company aims to start venture capital process in the region with an investment of Rs 15 crore over next 6 months. There are 3 types of investments offered by the company – investment of up to Rs 25,000 for individual farmer families, up to Rs 75,000 for small farmers and dairy owner, up to Rs 2 lakh for agroup of farmers, for a tenure of 2 to 3 years.
The company aims to penetrate the Tier II and Tier III towns of India where avenues of accessing financial assistance for agriculture and ancillary activities remain difficult due to the need for collaterals and bulky documentation process.
In continuation of its expansion in smaller towns and Tehsils and Village based communities, Foxhog has inaugurated its branch offices in Jamshedpur, Ranchi in Jharkhand, Patna in Bihar, Guwahati in Assam and nearby towns, districts.
Farmers across the country avail agricultural and dairy loans to fund seasonal operations as well as activities like animal husbandry, pisciculture, buying seeds, fertilizers or even land for farming. Banks are generally unwilling to lend loans to small farmers because small farmers normally have no collateral to pledge against loans. In these circumstances, this innovative lending to farmers is a first-of-its-kind offering by a venture capital firm.
Tarun Poddar, India Head and MD of Foxhog Ventures, said, “Foxhog has embarked on a journey of ‘disruptive innovation’ in financing by providing small loans to farmer families, particularly women members of the family. Considering the steep interest rates charged by village moneylenders and the spiralling debt trap that many farmers fall into, it is important to provide institutional credit to them at low rates. Farmers need consistent livelihood because their contribution is valuable for nation’s economy. Small farmers are expected to benefit the most from Foxhog Ventures’ initiatives in rural India.”
