The project consists of an equity investment for a minority stake in ProducePay (“PP”, or the “Company”), a commerce enablement platform focused on the produce market. The Company’s services are primarily targeted to LAC-based farmers who export fresh fruit and vegetables to the US. IFC is proposing US$8 million in equity preferred financing to ProducePay to support its operations and expansion.
1) Increased Access to Financing for Farmers: IFC expects that the Project will increase access to non-collateralized financing for produce farmers, primarily from Mexico but also from other LAC countries for export to North America. 2) Contribution to Market Creation - Integration: IFC expects that the Project will contribute to an increased integration of LAC agribusinesses to the U.S. market, as it contributes to the growth of an innovative business model fostering flexible working capital solutions for produce farmers to finance pre-harvest investments - not only in Mexico, Peru, Chile, but also in more underserved countries in Central America (e.g. Guatemala, Costa Rica).
IFC is proposing to invest US$8 million in an up to US$35 million Series C equity funding round.
Prospective investors in the current funding round (in addition to IFC) include the Inter-American Development Bank (IDB).
1) Risk Mitigation, Trusted Partnership: IFC brings about a unique capacity to PP, as it possesses a combination of expertise in Fintech and agri-business areas. With its experience in agri-financing in emerging markets, IFC's due diligence and participation in developing PP's expansion strategy will provide comfort to prospective investors with respect to the validity of PP's business model and strategy. 2) Standard-setting: IFC will help PP implement an Environmental and Social Management System (ESMS) to equip the company with the technical capacity to identify, manage and mitigate E&S risks and impacts derived from its activities.
Produce Pay Inc. is a privately owned company headquartered in Los Angeles, CA. Current major shareholders include Pablo Borquez (CEO & Founder), CoVenture (New York-based venture capital firm) and Anterra Capital (a global agri-tech venture capital firm).
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|International Finance Corporation (IFC)||Buyer||Finance||invests in||Produce Pay Inc.||Client||Agriculture and Forestry|
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