Small family farms and small and medium enterprises (SMEs) are the majority of enterprises in the agri-food sector in many developing countries. These enterprises can contribute to eradicating poverty (SDG 1), achieving food and nutrition security (SDG 2), promoting inclusive growth (SDG 8), protecting water, land and biodiversity (SDG 15), and achieving climate action (SDGs 13). Currently, many of them do not have sufficient access to finance to fulfil their potential. This Perspectives highlights the role of blended finance in this context and provides insights into how development co-operation actors can utilise blended finance to mobilise finance towards agri-SMEs in support to the SDGs.