Agrolend, a Brazilian agribusiness finance platform, has successfully raised $53 million in a Series C funding round, elevating its total funding to nearly $100 million. This significant investment was spearheaded by impact investor Creation Investments and Syngenta Group Ventures, with participation from new investors such as Vivo Ventures, L4, and Japan’s Norinchukin Bank. Existing backers, including Valor Capital, Lightrock, Yara Growth Ventures, and SP Ventures, also contributed to this round, showcasing a robust backing for Agrolend’s innovative financing solutions.
The fresh capital will enable Agrolend to broaden its credit offerings to industries, retailers, and cooperatives, a move that aligns with the company’s vision to enhance financial access for Brazil’s agricultural sector. Co-founder and CEO André Glezer emphasized the importance of this funding, describing it as “one of the largest” in Brazilian agribusiness history. He noted that this investment reflects the market’s confidence in Agrolend’s business model and positions the company for its next growth phase, focusing on serving both national and multinational players in the agricultural landscape.
Access to credit remains a critical issue for smallholder farms in Brazil, which constitute approximately 75% of the country’s agricultural operations. With the backdrop of declining soybean and corn prices in 2024, farmers are facing squeezed margins, compounded by high interest rates that have led to an increase in non-performing loans. Glezer highlighted the urgency of expanding financing options during this challenging period, stating, “We are excited to expand our financing capacity for farmers, especially at this particularly challenging time for credit in agribusiness.”
Agrolend’s platform offers a streamlined lending process that enables farmers to secure credit for purchasing essential agricultural inputs like seeds and crop protection products. The company has established a network of over 150 partners, including agricultural retailers and cooperatives, to facilitate this process. Loans are formalized through a Cédula de Produto Rural Financeira (CPR-F), a widely used financial instrument in Brazilian agribusiness, and can be signed conveniently via WhatsApp. This digital-first approach allows farmers to navigate bureaucratic hurdles that typically impede access to financing, with the entire loan request process taking as little as two days.
Earlier this year, Agrolend achieved a BBB+ rating from Moody’s, marking its official status as an investment-grade entity. This rating, coupled with the Series C funding, positions Agrolend to expand its credit offerings without increasing its leverage ratio. Glezer assured that the company would maintain a tier 1 capital ratio above 20%, emphasizing the importance of prudent financial management in the cyclical agribusiness sector.
With ambitious plans to grow its credit portfolio to $600 million, Agrolend aims to serve around 10,000 small- and medium-sized farmers across Brazil. Glezer expressed optimism about Brazil’s agricultural future, noting that conditions are beginning to improve in terms of prices, productivity, and farmers’ margins. He stated, “Brazil has a massive potential for growth in the ag space,” indicating that with sufficient capital, Agrolend can significantly expand its loan portfolio while managing risks effectively.
The successful fundraising round not only highlights Agrolend’s innovative approach to financing but also underscores the increasing recognition of the importance of financial access in enhancing agricultural productivity in Brazil. As the company gears up for its next phase of growth, the implications of this investment could resonate throughout the agribusiness sector, potentially transforming the landscape for farmers facing financial challenges.