Company has financed $3 billion in produce across North and South America, from seed to sale, backed by comprehensive pricing information and a marketplace connecting growers and distributors of fresh produce
Los Angeles – May 20, 2021 at 8 a.m. PT – 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:
“We’re proud to join ProducePay in supporting growers and distributors that promote fair labor practices, environmental care, and meaningful community engagement,” said Juan Gonzalo Flores, Mexico Country Manager at IFC. “Through a commitment to sustainable development at every step of the fresh produce value chain, ProducePay fosters economic development across the Americas and eliminates disruptive barriers to international trade.”
ProducePay will use the new capital to invest in technology development and infrastructure, grow its direct sales team, and further expand throughout Latin America.
“ProducePay is uniquely positioned to address social and economic inequalities in the global produce market by directly improving the livelihoods of those most historically disadvantaged by the food system,” said George Powlick, Venture Partner at Astanor Ventures. “Through continued growth and development across Latin America, ProducePay promises a more just and equitable future of food.”
“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.
ProducePay’s mission is to bring transparency, predictability, and fairness to the fragmented and opaque $300 billion global fresh produce market. For more information, visit producepay.com.
At G2VP, we invest in emerging technology companies that digitize traditional industries and drive market transformations. Tapping into global industries from transportation, energy and agriculture to manufacturing and logistics, G2VP was founded around a multi-trillion dollar trend: the digitization of industry. As this trend takes root, and industries worldwide transition from traditional analog to digital processes, G2VP sees tremendous opportunity for value creation, economic growth, and sector disruption. By aligning companies, purpose and profit, we aim to unlock previously unidentified paths to sustainability and resource efficiency.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
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.
IGNIA invests in world-class tech entrepreneurs who are solving problems faced by the emerging middle class in Latin America. We look for businesses in all stages that are addressing an unmet demand for the emerging middle class or that bring a better value proposition for a basic need.
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