Rabo Frontier Ventures (RFV), Rabobank’s strategic investment arm, invested in Agtech company ProducePay. This Los Angeles based company provides fresh produce farmers with financial resources, tech tools and data insights. ProducePay has secured $14m in a Series B Funding round, which was led by Anterra Capital.
ProducePay’s mission is to help farmers feed the world in a sustainable way, with financial resources, tech tools, and data insights. Addressing the lack of proper short-term access to financing and transparency within the farming industry supply chain, ProducePay has created the first ever means of securitizing perishable produce as a financial asset through the use of technology. Alleviating financial pressure for growers, while also freeing up cash flow for distributors, ProducePay provides immediate access financing for farmers and distributors in the United States, Mexico, Canada, Honduras and Chile for fresh produce sold in the United States.
“As the global leading Food & Agri bank, Rabobank aims to partner with revolutionary ventures in agriculture technology. ProducePay offers a solution that perfectly fits the Food & Agri ambitions of Rabobank. Their service addresses a significant pain point in the fresh produce value chain. The platform enables farmers to connect to food retailers in a more cost efficient and less risky way, of which all involved parties in the food value chain will benefit”, said Harrie Vollaard, Head of Rabo Frontier Ventures.
Series B funding
The Series B funding will be used to finance the next growth phase of the business as it scales its financing business and develops its software platform. It follows significant growth in 2017, in which the company financed $400m of produce, up from $17m in 2015. Pablo Borquez Schwarzbeck, CEO of ProducePay: “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.”