The Venture Codex

Participated · Series C · Dec 2021

Agrofy began as an online marketplace and now positions itself as a leading agribusiness online market in Latin America, operating in nine countries including Argentina. The platform lists around 150,000 products for farmers to purchase and has expanded into financial services. Its fintech offerings include the Agrofy Pay e-wallet and Agrofy Credits to qualify producers and grant loans through the platform. The company will use the new funding to strengthen three core business areas: its e-commerce marketplace, its farmer fintech suite, and expansion in Brazil. Agrofy plans to launch Agrofy Pay in Brazil in H2 2022 as part of that expansion. Company leaders said the Covid-19 pandemic accelerated agriculture’s digitization, which has supported their product and geographic growth. Agrofy operates an online agribusiness marketplace that matches buyers and sellers of agricultural products, machinery, farmland and financial services. Unlike some U.S. marketplaces, Agrofy works with existing vendors and agricultural retailers to digitize the supply chain rather than cut out middlemen. The platform lists over 200,000 products from 10,000 merchants across 17 categories, represents 95% of agricultural products in Argentina, has 500,000 farmer members and attracts 5 million monthly visitors. Today its revenues are based on membership fees charged to vendors, and the company plans to introduce transaction-based fees that founders estimate could be worth $50 million in the first year. Agrofy has a footprint in nine Latin American countries and by December nearly 50% of revenue came from Brazil. The company plans to expand to Mexico in 2020, grow its team from 200 to 300, increase its offices from 10, and use funding to simplify logistics and payments and improve user experience. Agrofy operates an online agribusiness marketplace listing farm machinery, vehicles, farmland, tools, equipment, insurance and other financial services, alongside e-commerce marketing, consulting and a news site (Agrofy News). The platform also provides transaction hosting, logistics and financial services for farmers and agribusinesses. Since launching in 2015, Agrofy has signed up 5,000 companies and hosts more than 65,000 product listings, with peer-to-peer and second-hand farm vehicle marketplaces particularly popular. The company plans to broaden product supply and build out site capabilities, including launching specific online payment solutions and six new agribusiness categories in 2018 (bringing total categories to 15). Financially, Agrofy raised an oversubscribed $6 million Series A in the reported round, bringing total capital raised to $10 million. The founding team has prior agtech experience (FYO.com) and has built partnerships with large corporates, which helped attract strategic corporate VCs.