ImpactAlpha, May 25 — L.A.-based ProducePay launched in 2014 to bring transparency and fairness to the $300 billion fresh produce market. That supply chain is “opaque, fragmented, and dominated by manual processes,” says ProducePay’s Pablo Borquez Schwarzbeck.
Bringing fintech to ag, ProducePay’s flexible financing and online marketplace connects over 700 growers, distributors and suppliers in Mexico and Latin America.
International Finance Corp. led the $43 million round alongside Silicon Valley-based G2VP and IDB Invest. IGNIA, Astanor Ventures, Finistere Ventures, CoVenture and Anterra Capital also participated.
Farmers that grow over $30 billion in fresh produce per year are underserved by traditional banks, according to the IFC. ProducePay’s financing has primarily gone to farmers of fresh produce in Mexico.
The financing will help the company expand into Chile, Peru, Central America and the Caribbean. ProducePay is “uniquely positioned to address social and economic inequalities in the global produce market,” said Astanor’s George Powlick.