IDH Farmfit Fund makes a USD 5.3 million equity investment into Kaleidofin
The investment aims to increase access to appropriate agricultural finance for smallholder farmers in India and beyond
IDH Farmfit Fund is excited to announce this latest transaction in an innovative business which can lead to more appropriate credit for smallholder farmers.
Kaleidofin private limited is a fintech company that has built a digital ecosystem to accelerate access to formal finance for small and growing businesses in the informal sector. The main customers of the company are small & marginal farmers, women-led enterprises and nano enterprises.
The Company today announced that it has received an equity infusion of USD 5.3 million from the IDH Farmfit Fund — a blended finance impact fund focussed on smallholder value chains. This brings the equity infusion in the current round to USD 19 million. The Company had earlier announced an investment of USD 13.8 million led by Rabo Partnerships which also saw investment from existing investors - Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India and Flourish ventures.
The investment will support Kaleidofin’s mission and help scale its lending portfolio and expand credit scoring, middleware and risk services through selected partnerships. This investment takes the total funds raised by Kaleidofin since inception to USD 42 million.
Kaleidofin and IDH Farmfit Fund will collaborate to drive financial inclusion by expanding access to financial services for smallholder farmers, including those in dairy, agri-allied sectors, agri workers, and agribusinesses. A key focus of this partnership will be the development of a specialized ki score, a credit health assessment product designed to cater to the unique needs of the agricultural sector. This initiative will transform agri-lending by moving beyond generic term loans to tailored financial products for animal husbandry, farm equipment, automation, sustainable agriculture, and climate-friendly farming practices. By integrating with financial institutions via the ki credit platform, this initiative will help scale high-quality specialised credit solutions, ultimately strengthening the financial ecosystem.Smallholder farmers form an important part of the economy, yet they remain vastly underserved by formal financial services. Through our collaboration with IDH Farmfit Fund, we aim to change this by creating specialized financial products that cater to the unique needs of farmers. ki score agri will help lenders deepen their agri portfolios while improving risk management, ensuring that capital flows efficiently to those who need it most.
Enhanced underwriting and tailoring of smallholder farmer loans, coupled with more efficient origination and distribution, can catalyse the flow of appropriate credit to this underserved segment across India and other markets. Improving the quality of financial inclusion, encompassing client protection, is critical to increasing both income and climate resilience over time.
The IDH Farmfit Fund was created to enable smallholder finance to become an investable asset class. Our partnership with Kaleidofin is a significant step toward realising that vision.
Kaleidofin’s technology provides deep insight into borrower risk, enabling more precise credit decisions and wider access to finance for underserved agricultural communities. We’re excited to support this innovation, which has the potential to transform agri-lending and strengthen rural value chains.
About Kaleidofin
Established in 2017, Kaleidofin is a fintech platform with a mission to build a digital financial ecosystem for everyone, everywhere. Kaleidofin provides financial solutions for low-income customers/businesses working in the informal economy via the Kaleidofin platform. By combining credit health assessment (ki score), middleware rails, risk management dashboards (ki view) and debt capital markets structuring capabilities (ki credit), Kaleidofin unlocks finance for informal sector customers from banks and other deep pools of capital.
In India, the platform has unlocked debt capital of cumulatively over USD 4.5 billion for over 7 million customers and small enterprises working in the informal economy, since 2020. By building underwriting standards for impactful finance, innovating on debt structures that scale inclusion, Kaleidofin is taking an ecosystem approach to delivering financial inclusion via its platform, especially focused on women, agriculture, nano entrepreneurs and youth in emerging market economies.
About IDH Farmfit Fund
The IDH Farmfit Fund is a public-private impact fund for smallholder farmers, many of whom are amongst the poorest people in the world. The Fund can take the highest risk positions in smallholder farmer related transactions, thereby reducing the risk currently born by borrowers and lenders. By doing so, IDH Farmfit Fund aims to catalyse commercial capital to coinvest in this sector. These investments will increase the availability of affordable, long-term financing to smallholder farmers, allowing them to invest in their farms, increase productivity and adopt climate-smart agriculture best practices, leading to improvements in their livelihoods and incomes. The IDH Farmfit Fund is facilitated by the IDH Foundation, and supported by a unique coalition of partners including commercial banks, development banks, government bodies and value chain companies. For more information, visit IDH Farmfit Fund.
IDH Farmfit Fund was advised by Nesbit West, Partner at CapstoneLaw for this transaction.