Syngenta and Creation Invest Lead R$300M Funding to Expand Credit for Brazilian Farmers
Agrolend, a digital bank for agribusiness, has announced a significant funding round of R$ 300 million ($55 million). This investment comes at a crucial time for Brazil’s agricultural sector, which is facing numerous challenges.
The Series C funding round was led by Creation Investments and Syngenta Group Ventures. Other notable investors include Vivo Ventures, Norinchukin Bank (Nochu Bank), and L4, an independent venture capital arm of B3.
This funding is particularly timely as Brazil’s agroindustry is experiencing severe difficulties. Major input distributors like AgroGalaxy and Portal Agro are seeking judicial reorganization due to financial troubles.
The sector is grappling with plummeting commodity prices, adverse weather conditions, and restricted credit access.
André Glezer, CEO and co-founder of Agrolend stated that this funding prepares the company for its next growth stage.
With this new equity round, Agrolend has raised nearly $100 million in three years, expanding its capital base to over R$ 500 million ($90 million).
Agrolend aims to expand its credit portfolio to R$ 3 billion ($535 million), serving approximately 10,000 small and medium-sized rural producers across Brazil.
However, this expansion is crucial, as there has been an 83.9% increase in judicial reorganization requests from rural landowners in early 2024.
The company provides loans through Agribusiness Credit Bills (LCAs), distributed on major investment platforms. Jason Gabriel of Syngenta Group Ventures expressed enthusiasm about the partnership, believing it will increase capital access for producers in Brazil.
This funding round demonstrates market confidence in Agrolend’s model and could provide much-needed support to Brazil’s struggling agroindustry. The sector’s stability is vital for Brazil’s overall economic growth, given the country’s reliance on agriculture.
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