- Los Angeles-based startup ProducePay announced that it raised a $190 million debt facility from CoVenture and TCM Capital
Los Angeles-based startup ProducePay announced that it has raised a $190 million debt facility from CoVenture and TCM Capital. This debt facility was raised to expand its lending business and marketplace for farmers.
What does ProducePay do? According to TechCrunch, ProducePay offers farmers cash advances throughout the growing season to help stabilize revenue and give farmers a bit more predictability. For example, ProducePay buys produce ahead of delivery and sets itself up as the middle man between distributors, growers, and grocers.
“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.,” said ProducePay founder and CEO Pablo Borquez Schwarzbeck. “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.”
ProducePay launched in 2015 and the company saw $1.5 billion worth of produce flow through its marketplace so far. Of that amount, $750 million of the transactions were in the last year alone. And the marketplace service has already seen $100 million in purchases since it launched in October.
