TerraMagna, a Brazilian agricultural financial technology (fintech) company, recently raised USD 30 million in debt and USD 10 million in equity funding from Japan’s SoftBank Group, via its SoftBank Latin America Fund, and two Brazilian finance firms, Milenio Capital and Shift Capital. The breakdown of the investments by investor and the sizes of the stakes taken have not been released. In addition to lending to sellers of agricultural inputs and tools, TerraMagna supports them in lending to farmers with its technology for evaluating farmers’ creditworthiness and monitoring their crops via satellite. This monitoring can ensure compliance with sales contracts as well as environmental regulations.
Bernardo Fabiani, the Co-founder and CEO of TerraMagna, reportedly said, “Credit has been the ubiquitous lifeblood that kept agriculture ticking, but in order for it to be able to rise up to this crucial role, it will need not only tick. It will need to have the proper long-horizon incentives, mentality and perspectives that only healthy businesses enjoy the luxury of having.”
TerraMagna firm was founded in 2017 and reported a book value of USD 120 million as of 2021. Its other shareholders include angel investors, Accion Venture Lab, Canary, Fundacao Estudar, Maya Capital, OneVC Capital and The Yield Lab.
Milenio Capital is an asset management firm that focuses on the credit market. Shift Capital is a venture capital firm providing funding and strategic support in the technology sector. Neither firm has published its investment volume or other financial data.
Softbank Latin America Fund was created by SoftBank Group in 2019. Established in 1981, the group invests in the technology and energy sectors, with total assets of JPY 12.2 trillion (USD 111 billion) as of March 2021.
By Sheen Gupta, Research Associate
Sources and Additional Resources
Accion press release
https://www.accion.org/agriculture-fintech-terramagna-harvests-40m-to-provide-credit-to-brazils-farmers
Bloomberg article
https://www.bloomberglinea.com/2022/01/12/softbank-leads-40m-round-in-terramagna-a-brazilian-fintech-for-farmers/
TerraMagna homepage
https://terramagna.com.br/
Mileno Capital homepage
https://www.milenio.capital/
Shift Capital homepage
https://shiftcapital.com.br/
SoftBank Group homepage
https://global.softbank/
SoftBank Latin America Fund homepage
https://www.latinamericafund.com/
Previous MicroCapital article on TerraMagna
https://www.microcapital.org/microcapital-brief-accion-venture-lab-invests-equity-in-terramagna-fintech-using-satellite-imagery-to-help-agribusinesses-lend-to-farmers-in-brazil/
Previous MicroCapital article on SoftBank
https://www.microcapital.org/microcapital-brief-softbank-leads-400m-equity-funding-round-for-fintech-opay-of-nigeria-as-it-eyes-international-expansion/
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