ImpactAlpha, November 1 – More than three-quarters of Mexico’s five million farmers do not earn sufficient income to live. Mexico City-based Verqor provides upfront credit to farmers to buy farm inputs, like seeds and crop treatments, and to rent machinery to improve their yields and incomes. Farmers repay the loans after they’ve harvested and sold their goods. The credit covers up to 90% of farmers’ costs.
Verqor says more than half of its customers are accessing credit for the first time.
The fintech venture landed $4 million in equity from Yara Growth Ventures, Accion Venture Lab, SP Ventures, Glocal and Amplifica Capital. An additional $3.5 million in debt came from Co_Capital and Addem Capital.
Verqor assesses farmers’ ability to pay with remote plant monitoring, yield information, supply chain and weather trends and crop prices.
Verqor says market fragmentation and inefficiencies in Mexico makes it necessary to assist farmers across the agricultural value chain. It also helps farmers line up buyers.
“Verqor is creating a digital ecosystem that connects key agricultural players in Mexico while placing the needs of farmers at its core,” said Accion Venture Lab’s Amee Parbhoo.
Correction: An earlier version of this article stated that Verqor had raised $11 million, including $7.5 million in equity. The correct number is $7.5 million in total, including $4 million in equity.