ProducePay, a financing, analytics, and marketplace startup bringing transparency, predictability, and fairness to the global fresh produce market, today announced a $43 million Series C funding round.
The round was led by Silicon Valley-based G2VP, and co-led by IFC (International Finance Corp.) and IDB Invest (part of the Inter-American Development Bank Group). Other participants in the round included current investors Anterra Capital and Coventure and new investors Astanor Ventures, IGNIA, and Finistere.
The funding brings ProducePay to over $300 million raised in debt and equity funding since its founding in 2014.
“The global fresh produce market is opaque, fragmented, and dominated by manual processes, and these obstacles make it difficult for growers and distributors to thrive,” said Pablo Borquez Schwarzbeck, co-founder and CEO at ProducePay. “We remove these pain points to provide transparency, predictability, and fairness for both growers and distributors throughout the entire produce value chain, from seed to sale.”
ProducePay, which has financed $3 billion of produce across 12 countries in North and South America, saw 2020 revenue double despite the Covid-19 pandemic. This makes the company one of the largest players in the region’s fresh produce market.
“ProducePay helps growers and distributors stay at the forefront of several critical industry trends: the digitization of food supply chains, the rise of embedded fintech within B2B marketplaces, the de-commoditization of food, and increasing market volatility due to climate change,” said Ben Kortlang, Partner at G2VP. “By capturing real-time data through a global online marketplace, ProducePay provides a solution to the future’s biggest agricultural challenges.”
ProducePay’s product suite includes grower financing, market pricing data and analytics, and a marketplace for growers, distributors, and suppliers:
Grower Financing: ProducePay offers growers financing at every stage of the harvest cycle, with flexible payment terms, access to funding in two weeks or less, and no obligation to pay until produce ships.
Market Pricing Data and Analytics: More than 10,000 growers and distributors turn to ProducePay’s Insights and InsightsPro platforms for unprecedented access to real-time produce pricing data and analytics. Aggregating data from individual growers and distributors, along with public, private, and proprietary sources, ProducePay brings much needed pricing transparency to the produce industry.
Produce Grower, Distributor, and Supplier Marketplace.
ProducePay will use the new capital to invest in technology development and infrastructure, grow its direct sales team, and further expand throughout Latin America.
“We have known Pablo and Ben for more than two years and we are proud to finally be ProducePay investors. Being the only Mexico based institutional investor in ProducePay, we are very much looking forward to working with them in such a strategic market for the Company.” said Álvaro Rodríguez Arregui, IGNIA Co-founder and Managing Partner.
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