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ProducePay, the Los Angeles based company which provides fresh produce farmers with financial resources, tech tools and data insights, has secured $14m (£11m) in a Series B Funding round. The funding was led by Anterra Capital, with participation from Rabo Frontier Ventures (Rabobank strategic investment fund), Coventure, Social Leverage, FJ Labs, Greenhouse Capital, Moonshots Capital and Tribeca Angels. Addressing the lack of proper short-term access to financing and transparency within the farming industry supply chain, ProducePay has created the first ever means of securitizing perishable produce as a financial asset through the use of technology.
Alleviating financial pressure for growers, while also freeing up cash flow for distributors, ProducePay provides immediate access financing for farmers and distributors in the United States, Mexico, Canada, Honduras and Chile for fresh produce sold in the United States. The Series B funding will be used to finance the next growth phase of the business as it scales its financing business and develops its software platform. It follows significant growth in 2017, in which the company financed $400m of produce, up from $17m in 2015. Founded in 2015, ProducePay has provided liquidity to over 600 growers and distributors in six countries, financing over $850m of produce in under four years. In addition to cash flow solutions, ProducePay has recently launched multiple tools for online trading and data insights. These tools aim to streamline the produce sales process by allowing verified distributors and grower shippers to find new business partners, communicate digitally and access real-time pricing and market conditions.