Los Angeles-based ProducePay inked a $190 million debt facility from CoVenture, UK, and TCM Capital, London, to expand its purchasing model and marketplace for farmers.
ProducePay offers farmers cash advances throughout the growing season to give farmers more predictability. It buys produce ahead of delivery and sets itself up as a middle-man between distributors, growers and grocers.
The company’s centralized marketplace is also said to offer growers higher pricing and certain payment from distributors, along with better pricing for supplies and services like seed, equipment and logistics services.
“In just four years, ProducePay has had a transformative effect on the financial health and success of scores of farmers and value-additive distributors in Latin America and the U.S.,” says Pablo Borquez Schwarzbeck, founder and CEO. “This new debt facility will accelerate ProducePay’s impact, empowering more farmers and distributors to run their businesses more profitably, making high-quality and affordable fresh produce available throughout the U.S.”