DiMuto, a trade tech solutions platform that provides end-to-end supply chain visibility for global agri-food businesses, has raised capital from venture capital studio Latin Leap. The investment and support provided by Latin Leap would help drive further international expansion in Latin America, a market where strong continued growth of fresh produce trade is expected.
A region that has positioned itself as a leading exporter of agricultural products, Latin America’s fruit and vegetable production and exports have grown considerably, particularly for tropical fruits such as bananas, avocados, pineapples and mangoes. According to a 2019 report by the Organization for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO), tropical fruits accounted for a total export value of around US$15.5 billion in Latin America from 2016-18 and overall agricultural trade surplus has steadily increased over the past two decades to reach US$104.3 billion in 2017.
“With the strong outlook for the agricultural sector in Latin America, I believe that the industry would benefit from digitalization and traceability offered by DiMuto that would bring peace of mind to consumers around the world. DiMuto fits perfectly into our investment thesis of soft-landing tech-enabled businesses with a positive impact on society in Latin America. We are proud to accompany its growth path in the region,” said Stefan Krautwald, General Partner of Latin Leap.
Latin Leap, a newly formed Venture Capital Studio focusing on opening up opportunities in Latin America for Southeast Asian tech-scale ups, is set to base its fund structures out of Singapore with the aim of becoming a partner in the internationalization of the region’s tech sector.
Using blockchain, IoT and AI in its trade solutions, DiMuto digitalizes the agri-food supply chain for data visibility and trade transparency, aiming to solve the industry’s various challenges such as food waste, food safety and food sustainability.
DiMuto creates traceability for every single fruit as they move through the supply chain – from farms, factories, cold chain to distribution channels and end consumers. Through its proprietary Digital Asset Creation devices (DACky), DiMuto tags each fruit and carton with QR labels and captures images of every carton. Data such as relevant trade documents is then associated with the product information and uploaded onto its blockchained trade platform, effectively reducing disputes over quality and creating trust amongst trade parties.
“We are excited to have Latin Leap join us as an investor and partner to grow our presence in Latin America. With data captured using our solutions, stakeholders in the agri-food supply chain are now able to see the quality of fresh produce being it is being shipped, creating trust and visibility in the uncertainty brought on by COVID-19,” said Gary Loh, Founder and Chief Executive Officer of DiMuto.
Enterprise Singapore supported DiMuto’s internationalization journey in Latin America by providing market insights, sourcing suitable in-market partners such as Latin Leap, patent filing, proof of concept and assisting with business development and branding efforts.
Kathy Lai, Deputy CEO of Enterprise Singapore said “A diversified supply chain is part of business continuity planning for companies in today’s operating environment. Secure digital solutions will be key to address shifts and disruptions in global supply chains, particularly in food security. Good traceability systems assure safety and quality in global food supply chains. We look forward to assisting more Singapore start-ups like DiMuto in Latin America to support the region’s food sustainability efforts.”
To date, DiMuto has tagged over 30 million fruits and tracked and traced over US$100million worth of agrifood trades. With presence in 7 countries including US, China, Indonesia, Australia and Mexico, the new funding and strategic support from Latin Leap will allow DiMuto to further capitalize on its global growth momentum and help drive further international expansion in new markets in Latin America over the next few months.