Debt Facility Will Allow Fintech Startup to Finance $4 Billion in Produce Annually, Equivalent to the Largest Produce Provider in the U.S.
ProducePay, a four-year old alternative financing, data and marketplace company serving the $300 billion fresh-produce market, today announced that it has secured a $205 million debt facility from Coventure and TCM Capital. The news follows ProducePay’s $14 million 2018 Series B equity funding round, which was led by Anterra Capital.
The global market for fresh produce is a difficult one for farmers and distributors to manage:
ProducePay, which already works with hundreds of farmers and distributors across 13 countries, addresses these problems by providing:
Company and Investor Comments
“In just four years, ProducePay has had a transformative effect on the financial health and success of scores of farmers and value-additive distributors in Latin America and the U.S.,” said ProducePay Founder and CEO Pablo Borquez Schwarzbeck. “This new debt facility will accelerate ProducePay’s impact, empowering more farmers and distributors to run their businesses more profitably, making high quality and affordable fresh produce available throughout the U.S.”
“Because the fresh produce market is incredibly fragmented, and because traditional financing is costly and time-consuming, it has been difficult for farmers to make the investments required to grow,” said Ali Hamed, Founder at CoVenture. “But ProducePay, which was co-founded by a family member of a leading Mexican produce farmer, has proven that when you combine a deep understanding of the market, a meaningful connection to growers, and significant investment in data and technology, big change is possible.”
“What we’re offering is not a loan, it’s a payment in advance for produce that may not even be harvested yet,” said ProducePay co-founder and CFO Ben Dusastre. “It’s our commitment and investment in that grower.”
ProducePay’s mission is to help farmers feed the world in a sustainable way. We’re working to empower the people that grow, handle, and transport our food by providing them with financial resources, data insights, and technology.
ProducePay’s solutions provide produce growers, distributors, shippers and marketers with new ways to access cash flow and increase sales. Our tools for online trading and insights allow produce buyers and sellers to find new business connections and access real-time pricing and market conditions.
ProducePay investors including Coventure, Anterra Capital, , Rabo Frontier Ventures, Greenhouse Capital, Social Leverage, FJ Labs, Moonshots Capital Tribeca Angels and Arena Ventures.
CoVenture is an investor in early-stage technology companies. CoVenture invests out of a venture capital fund that backs early stage technology startups and manages a special opportunities credit fund that finds novel assets that have never been financed before.
About Thiele Capital Management LLC
Founded by Alex Thiele in 2016, Thiele Capital Management LLC is a Minneapolis-based private-fund advisor that focuses on niche lending strategies by partnering with leading fintechs and non-bank lenders.
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