GrainChain, which is digitising the agricultural supply chain, has closed an investment round on $29m.
Overstock.com, an online furniture and home furnishing retailer, participated in the round, alongside Pelion Venture Partners and others.
Of the capital injection, Overstock.com deployed $10m through a convertible promissory note and Pelion tapped its flagship fund series to make a $10m investment.
GrainChain integrated FinTech tools into its smart contract solution to enable new liquidity options to farmers and offer prompt payment upon delivery of commodities. This includes the ability to create lien instruments, deploy and manage capital, add insurance products, monitor and track farming operations, and facilitate repayment of funds.
Through this tool, users can reduce risk through real-time, accurate data as commodities move through the supply chain.
Since 2020, the company has grown its user base at a compounded rate of around 125% and revenue by around 400%.
GrainChain co-founder and CEO Luis Macias said, “GrainChain utilises blockchain and IoT technology to digitise the agricultural supply chain and create an easier, faster, safer transaction environment for producers and buyers of the end commodity.
“We thank the Overstock and Pelion teams for the additional capital to support our continued growth and for supporting our efforts from the very beginning. Pelion has been an invaluable partner, providing strategic guidance and connecting us with the proper resources to allow us to focus on our clients, core business and growth.”
As part of the investment round, Pelion partner Jeff Kearl will join the GrainChain board of directors.
Overstock first invested into GrainChain through the Medici Ventures Fund in December 2018.
Medici Ventures, a subsidiary of Overstock, was moved into a limited partnership in 2021, which is managed by Pelion Ventures.
Another FinTech focused on the agricultural sector to recently raise capital was Harvesting Farmer Network. The company raised $4m in funding led by Social Capital.
Harvesting Farmer Network helps reduce friction between farmers and buyers by helping them directly connect over Twitter.
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