Solving distress sale and post-harvest financing problems for small holderfarmers.
CDL (University of Toronto), CIIE, IIM Ahmedabad, Mass Challenge USA, Pusa Krishi, IIT, Kanpur
Distress sale of harvests by farmers due to post-harvest demand-supply mismatch is a sad reality of the agriculture sector with some of the crops selling at 30-50% below the average yearly price, resulting in low realisable income for farmers. Additionally, smallholder farmers encounter difficulties in obtaining reasonable finance, due to the lack of recognisable collateral and the perceived high risk of lending to these communities by financial institutions. The existing system of warehouse receipt finance is largely manual and geared toward traders instead of farmers with a high risk of collateral fraud.
Whrrl offers a blockchain-integrated digital lending & trading platform that connects farmers, warehouses, and banks to help farmers obtain instant credit of loans against their crop deposits made in affiliated warehouses, thereby avoiding a "distress sale" of their produce. Whrrl's blockchain technology-based platform ensures that fraudulent banking practices are eliminated, thereby unlocking credit flow to the ecosystem at a significantly reduced cost of underwriting while digital lending helps bring financial services to the doorstep of the farmers.
Whrrl's platform offers farmers Warehousing, Warehouse Receipt Finance & Marketplace facilities to solve their "distress sale" issues, and access to finance & market linkage problems. Farmers who cannot access the mobile application or who are not digitally literate can carry out the digital lending/trading activity at partner warehouses.
Whrrl is looking to expand its operations to global south markets starting with South East Asian & African Markets. As a part of an international expansion plan, they have already entered into partnerships in the Philippines and Singapore and are actively working on commencing operations in the coming quarter (2022).