Ground Up Investing has reached a $6 million first close for its second impact investment fund, which is targeting $20 million to support agricultural businesses across Africa and Latin America.
Ground Up Investing, the impact investing arm of Corus International, plans to use Fund 2 to provide working capital loans to agricultural small and medium-sized enterprises in Kenya, Uganda, Rwanda, Colombia, Peru, and Ecuador.
The fund is designed to address a financing gap for agricultural businesses that purchase crops directly from smallholder farmers, connect producers with markets, and support local employment.
Ground Up Investing said many of these businesses require loans ranging from approximately $250,000 to $1 million, amounts that are often too large for microfinance providers but too small for traditional commercial investors.
Fund 2 will primarily provide two-year working capital loans and is expected to help improve land management across more than 20,000 acres of farmland.
The fund is also targeting approximately $200 million in new income for smallholder farmers, representing a goal of generating $10 in additional farmer income for every $1 invested.
Corus International is serving as the anchor investor in Fund 2.
The new vehicle builds on Ground Up Investing’s first fund, which launched in 2017 and invested $5 million across 15 agricultural businesses.
Those portfolio companies have collectively paid more than $50 million to farmers, supported more than 800 local jobs, and improved agricultural management practices across more than 50,000 acres, according to Ground Up Investing.
One Fund 1 investment, Ugandan coffee company Mountain Harvest, purchases coffee from more than 3,000 farming families and pays farmers a 30% premium.
Ground Up Investing was founded by Corus International in 2017 to provide patient, impact-focused capital to agricultural businesses underserved by conventional financial institutions.
The organization’s broader long-term ambition is to help generate $1 billion in additional farmer income over the next decade by expanding access to capital for agricultural entrepreneurs and rural businesses.
KEY QUOTES:
“This milestone reflects much more than dollars raised. It reflects growing confidence in the farmers, entrepreneurs and rural businesses that power local economies every day. Over the past several years, we’ve seen firsthand that when agricultural enterprises gain access to capital, farmers earn more income, businesses grow and communities become stronger. Fund 2’s north star is $10 in additional farmer income for every $1 we invest, and our vision is to create $1 billion in farmer income over the next ten years.”
Mark Muckerheide, CEO Of Ground Up Investing
“Corus has spent decades working alongside farmers and rural communities around the world. Ground Up Investing has shown that when capital reaches local entrepreneurs, it creates opportunities that extend throughout entire communities. The strong response from investors reflects a growing recognition that rural businesses are not only engines of economic growth, but also essential partners in building more resilient and prosperous communities.”
Ambassador Daniel Speckhard, President And CEO Of Corus International
