Agrifintech Agrolend banks $53m Series C: ‘It demonstrates the market’s confidence in our business model’

• Agriculture financing system Agrolend has actually elevated a $53 million Collection C round, bringing its complete financing to almost $100 million.
• Influence financier Creation Investments and Syngenta Group Ventures led the round.
• Brand-new capitalists Vivo Ventures, L4, and Japan’s Norinchukin Bank likewise took part together with existing ones consisting of Valor Capital, Lightrock, Yara Growth Ventures, SP Ventures, and others.
• Agrolend will certainly utilize the funds to increase its credit history offerings to markets, sellers and cooperatives.

Why it matters

Agrolend cofounder and chief executive officer André Glezer claims the Collection C is “among the biggest” in the background of Brazilian agriculture which it “shows the marketplace’s self-confidence in our company design and prepares us for the following phase of development, where we will certainly offer significant gamers in the market, both nationwide and international.”

” We are thrilled to increase our funding ability for farmers, specifically at this especially tough time for credit history in agriculture,” he includes.

Accessibility to credit history has actually traditionally been a significant difficulty for Brazil’s smallholder ranches, that make up concerning 75% of all farms in the nation. An added difficulty in 2024 is the decrease in soybean and corn prices, which has actually even more decreased farmers’ margins.

” In Brazil, we go to a minute of high rates of interest furthermore pressing the farmer’s margin. So, considered that, non-performing fundings to farmers (defaults) are boosting generally in Brazil,” claims Glezer.

Agrolend sustains farmers using its loaning system that uses credit history for acquisition of farming inputs such as seeds and plant security items. The business has a network of greater than 150 companions to sustain this procedure consisting of ag sellers, markets, and cooperatives.

Fundings are defined via the issuance of a Cédula de Produto Rural Financeira (CPR-F), an usual monetary tool in Brazilian agriculture, and authorized using the farmer’s WhatsApp.

The business’s digital-native system enables Brazilian agriculture manufacturers to bypass most of the administrative obstacles that would typically stand in their means when it pertains to acquiring much-needed credit history. The whole procedure, from demand to car loan, takes around 2 days, claims Agrolend.

Previously this year, Agrolend acquired a BBB+ ranking from Moody’s, formally making it “financial investment quality.”

The Collection C financing will certainly permit Agrolend to increase its credit history offerings to markets, sellers and cooperatives without boosting its utilize proportion. “Take advantage of will certainly be maintained a comfy degree, keeping a rate 1 funding distribution over 20%,” claims Glezer.

” Agriculture is an intermittent company and Brazil is structurally really affordable in agriculture,” he includes. “The problems have actually currently started to boost (rates, efficiency, margins to farmers), and Brazil has a huge possibility for development in the ag room. With a great deal of funding, Agrolend will certainly have the ability to increase its car loan profile substantially without taking extra dangers via an extreme high utilize proportion.”

The business’s objective is to expand its credit history profile to $600 million and offer approximately 10,000 little- and medium-sized farmers throughout Brazil.

The article Agrifintech Agrolend banks $53m Series C: ‘It demonstrates the market’s confidence in our business model’ showed up initially on AgFunderNews.