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Vrutti, HSBC India launch ‘FPO Shakti’ to bridge financing gap for FPOs
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Monday, 08 December, 2025, 08 : 00 AM [IST]
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Our Bureau, Delhi
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Vrutti, part of the Catalyst Platform, has announced the launch of FPO Shakti, a new blended finance facility designed to provide stage-appropriate capital to Farmer Producer Organisations (FPOs) across India. Supported by HSBC India and managed by Friends of Women’s World Banking (FWWB) India, the facility aims to strengthen India’s FPO ecosystem by addressing the persistent credit barriers that hinder their growth.
India has over 44,000 registered FPOs, yet fewer than one-third can access formal credit due to collateral-heavy lending systems and rigid eligibility norms. Most FPOs struggle to transition beyond the incubation stage, trapped in the “missing middle” where timely, appropriate capital is simply unavailable. This gap disrupts rural value chains and limits income opportunities for millions of smallholder farmers.
The FPO Shakti Financing Facility has been developed to counter this systemic challenge. It brings together financial institutions, catalytic capital providers, buyers, and technical assistance partners under a unified operating framework. The first phase will support 15 early-growth FPOs, with a plan to scale to 100 plus organisations over the coming years, building a robust pipeline of bankable, investment-ready farmer-led enterprises.
The model blends revolving funds, guarantees, and revenue-linked financing with on-ground technical assistance delivered through Business Support Organisations. Alongside this, digital record-keeping systems will improve transparency and bolster lender confidence. Under the programme, each participating FPO will undergo a 24-month structured acceleration journey, covering governance, financial discipline, market systems, and digital enablement ensuring they evolve into stable, enterprise-ready organisations.
Commenting on the initiative, Aloka Majumdar, MD and Head of Sustainability, HSBC India, highlighted the need for structured support to overcome credit barriers and unlock sustainable market participation for FPOs. Raghini Badhrinarayanan, CEO, Vrutti, emphasised that the facility shifts the focus from short-term project aid to long-term institutional strengthening, designed to provide FPOs with patient capital and the foundational support they need to grow while staying rooted in community ownership.
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