The Japan International Cooperation Agency has decided to invest in Brazilian fintech company Agrolend, which offers rapid financing to small- and midsize farming operations in the country, often within two days of an application being received.
The Japanese government-backed agency held a signing ceremony Wednesday in Sao Paulo. It hopes the investment will help ensure stable food procurement by Japan, which imports such crops as soybeans and corns from the South American agricultural giant.
Fund procurement has been a bottleneck for small and midsize Brazilian farms, which account for over 70% of all farming operations in the country. By utilizing information technology, Agrolend successfully shortened the period needed for screening loan applications.
The company has allowed farmers in need of funds to purchase seeds and fertilizers to apply for financing via WhatsApp and receive loans quickly.
Established in December 2020, Agrolend provides financing services to some 2,700 farmers in Brazil. In the latest fund raising deal aimed at expanding its businesses, the company procured $56 million from JICA and others.
Agrolend CEO Andre Glezer noted that expanding Brazilian agriculture is important for the world. He unveiled the company's policy of aiming to list its shares on the New York market in the future.
Since the 1970s, JICA has been cooperating in the agricultural development of the Brazilian cerrado, or tropical savanna, to help the country develop into an agricultural exporter.
"It's highly significant to collaborate with Brazil in terms of food security," JICA Brazil Office chief Akihiro Miyazaki said.
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