ProducePay, a startup improving cash flow access to farmers, has collected $14m in its Series B round which was led by Anterra Capital.
Participation to the round also came from Rabo Frontier, Coventure, Social Leverage, FJ Labs, Greenhouse Capital, Moonshots Capital and Tribeca Angels.
ProducePay hopes to improve the short-term access to financing for the farming supply chain. Its services are currently used by farmers and distributers across the US, Mexico, Canada, Honduras, and Chile.
There are three types of financing available to consumers. Farmers can choose a pre-season credit line which gives them an advance of 10 per cent of annual crop value before the harvest begins. A pick & pack loan enables producers to receive 50 per cent of the crops value as soon as its harvested.
Its final loan offering allows borrowers to receive 80 per cent of an invoice as soon as they ship.
The company recently launched new tools for online trading and data insights, which streamline the produce sales process. The tools allow verified distributors and grower shippers to find new business partners, communicate digitally and access real-time pricing and market conditions.
This equity injection will be used to fund the company’s next growth stage and develop its software.
Last year, the company financed $400m of produce which is a stark increase on the $17m financed in 2015, its foundation year. To date, the company has helped to finance more than $850m of produce.
ProducePay CEO Pablo Borquez Schwarzbeck said, “We have spent the last three years reinventing how the produce industry accesses short term cash needs and the transparency of their supply chain.
“To date, ProducePay has helped move over $850m of produce. By receiving financial support from Anterra Capital, the leading Food & AgTech VC, and Rabobank, the world’s premier Ag-focused bank, we are empowered to continue on the path to becoming the fintech leader of the produce industry.”
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