Verqor, a pioneering FinTech firm committed to the digitalisation of Mexico’s agricultural sector, is making significant strides in the industry.
The company recently announced the successful raising of $7.5m. This impressive funding feat was achieved through a pre-Series A round led by Yara Growth Ventures, which contributed $4m. Several esteemed participants, including Accion Venture Lab, SP Ventures, Glocal, and Amplifica Capital, added their support. Additionally, Verqor procured $3.5m in debt funding from Co_Capital and Addem Capital.
Verqor is changing the agricultural landscape by offering cashless credits to farmers, empowering them to purchase essential farming inputs like fertilisers, agrochemicals, and organic products. Notably, a majority of its users, 55% to be precise, have accessed credit for the first time through Verqor.
This financing model by Verqor allows farmers to cater to up to 90% of their production costs, thereby enhancing the quality of produce and elevating their income with each crop cycle. With a unique underwriting process tailored to the sector’s specific needs, Verqor stands out by assessing a farmer’s real capacity to repay, leveraging data such as supply chain and weather trends, and NDVI factors.
The recently acquired funds are earmarked to bolster Verqor’s operations within Mexico. The company is setting its sights on creating the nation’s most extensive network of agricultural supplier partnerships. This would not only cement Verqor’s position as a preferred payment method for clients but also act as a bridge connecting suppliers, farmers, and produce purchasers.
The tech advancements by Verqor aim to expedite the credit approval process, making it seven times swifter than conventional financing avenues, redefining the traditional agribusiness operations in Mexico.
Despite Mexico’s position among the top ten global food producers, a staggering 90% of its farmers remain deprived of formal financing. This lack restricts their capacity to invest, compromising productivity, margins, and the global food supply.
Verqor CEO Hugo Garduño remarked, “Mexico’s farmers play a crucial role in the global food supply chain, yet they lack access to the financial resources they need to produce high-quality crops. With this new funding, Verqor will be able to scale nationally and empower even more farmers in Mexico.”
Yara Growth Ventures Investment Director George Roche shared, “The Verqor team have consistently impressed us with their ability to understand their farmer customers and execute on their vision of making farmer’s lives easier. We are very proud to invest in Verqor and help them on their path to changing agriculture in Mexico and beyond.”
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