Agricapital, a leading Fintech in Colombia providing financing to small and medium-sized farmers, announced the closing of a $7.4 million round (a combination of equity and debt). The round was led by ALIVE Ventures and included the participation of existing investors such as Bancolombia and COMFAMA, among others. On the debt side, financing came from renowned international players such as IDB LAB, Alphamundi, and the Bancolombia group, among others.
Agriculture plays a fundamental role in the economies of Colombia and Latin America, representing 8.7% and 6.6% respectively of GDP in 2023. Rural producers make up a significant percentage of the employed workforce throughout the region. However, they face challenges in accessing basic inputs such as fertilizers, seeds, tools, and knowledge, all essential to improve their yields. Financing plays a key role in enabling small and medium-sized farmers to access these elements. However, historically, they have been neglected by the traditional banking system.
AgriCapital was born in 2018 in Colombia as the first agrifintech in the country dedicated to solving the financing gap in the agricultural sector in Colombia. The company leverages technology and data to offer customized financing solutions that adapt to the needs and specific profile of rural producers. AgriCapital has developed a unique business model that leverages local infrastructure through a vast network of allied agricultural supply stores, enabling the company to reach farmers across all of Colombia. This strategy ensures efficient access to qualified financing opportunities and guarantees that financing is effectively used for productive purposes.
AgriCapital CEO and co-founder Juan Sebastian Correa says, “Our obsession is to eliminate the barriers to access that small and medium-sized farmers face when applying for credit to grow and make their businesses profitable. With the closing of this investment round, we have the necessary resources to continue investing in our internal processes and technology that allow us to bring credit products tailored to each crop in an agile and simple way.”
Virgilio Barco, Managing Partner of ALIVE Ventures, who will join the board of directors of AgriCapital, added, “We are excited to support AgriCapital, a company that is allowing small and medium-sized farmers in the country to move forward with their productive projects, generating development and prosperity in rural areas.”
Currently, 81% of AgriCapital's clients are smallholders, 17% are independent agricultural workers, and 26% are women. Additionally, 45% of its clients had no credit history prior to AgriCapital. 99% of clients reside in rural areas.
For more information about AgriCapital, visit their website at: