Por Agroempresario.com

Brazilian agribusiness finance platform Agrolend has successfully raised a $53 million Series C funding round, increasing its total capital raised to nearly $100 million. This significant investment was led by impact investor Creation Investments and Syngenta Group Ventures, with participation from new investors Vivo Ventures, L4, and Japan’s Norinchukin Bank, alongside existing backers such as Valor Capital, Lightrock, Yara Growth Ventures, and SP Ventures.

Agrolend plans to utilize this funding to broaden its credit offerings to industries, retailers, and cooperatives within the agribusiness sector. Co-founder and CEO André Glezer emphasized that this Series C round is among the largest in the history of Brazilian agribusiness, reflecting robust market confidence in Agrolend's business model. He added, “This prepares us for the next stage of growth, allowing us to better serve both national and multinational players in the sector.”

Access to credit has been a persistent challenge for Brazil's smallholder farms, which constitute approximately 75% of the country's farms. The current economic climate has worsened, with declining soybean and corn prices further squeezing farmers’ profit margins. “In Brazil, high-interest rates are compressing margins, leading to an increase in non-performing loans among farmers,” noted Glezer.

Agrolend's lending platform offers essential credit for purchasing agricultural inputs like seeds and crop protection products. The company collaborates with over 150 partners, including agricultural retailers, industries, and cooperatives, to facilitate this process. Loans are formalized using the Cédula de Produto Rural Financeira (CPR-F), a common financial instrument in Brazilian agribusiness, with transactions conveniently signed via farmers' WhatsApp.

The company’s digital-native system simplifies the lending process, allowing producers to bypass bureaucratic obstacles. According to Agrolend, the complete process—from loan request to approval—typically takes just two days. Earlier this year, Agrolend achieved a BBB+ rating from Moody’s, officially granting it an “investment grade” status.

With the new funding, Agrolend aims to expand its credit offerings without increasing its leverage ratio. Glezer stated that the company intends to maintain a tier 1 capital ratio above 20%, ensuring that leverage remains at a manageable level.

“Agribusiness is cyclical, and Brazil has a structurally competitive agribusiness environment,” Glezer remarked. He expressed optimism, noting that conditions are beginning to improve for farmers, with better prices, productivity, and margins expected. Agrolend's goal is to grow its credit portfolio to $600 million and serve approximately 10,000 small- and medium-sized farmers across Brazil, paving the way for enhanced financial support in the agribusiness sector.