IDB Invest, a member of the IDB Group, made a $6 million equity investment in ProducePay, an AgTech venture focused on the agribusiness sector that offers financing solutions directly to growers within Latin America, in addition to market intelligence and access to an innovative marketplace to benefit both farmers and distributors. The financing is part of a $43 million Series C round led by G2VP, a Silicon Valley-based venture capital firm.
ProducePay plans to use the investment resources to scale up its operations, invest in technology, marketing, and other operational expenses, and grow its sales team. Its online platform seeks to disrupt the traditional fresh fruits and vegetables trade market from Latin America to the United States. The company enables farmers in the region, which represent an integral part of the US fresh fruits and vegetables supply chain, to access financing and connect with reliable counterparts while enhancing transparency and fair trade in the market.
In addition, ProducePay's environmental and social procedures will be substantially improved due to the involvement of IDB Invest. As part of IDB Invest’s support, ProducePay will also incorporate relevant improvements to its corporate governance practices, and it will develop a robust sustainability strategy that will contribute to ProducePay’s vision to effectively scale up its disruptive business model and position itself in the market as one of the fastest-growing providers of capital.
The deal potentially contributes to three of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), and Partnerships for the Goals (SDG 17).
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
ProducePay’s mission is to bring transparency, predictability, and fairness to the fragmented and opaque $300 billion global fresh produce market.
This article was originally published by IDB Invest.