By Gerelyn Terzo, Global AgInvesting Media
London-based Cibus Capital, an investment firm focused on sustainable food and agriculture with over $1 billion in assets under advisement, has announced its latest acquisition. Through its Cibus Enterprise Fund II, the firm co-led a $25 million investment in Growers Edge, a U.S. financial and data platform serving the agricultural sector. This deal represents the fund’s first foray into the burgeoning agri-fintech space within agtech. S2G Investments and Lowercarbon Capital co-led the fundraising round alongside Cibus Enterprise Fund II. Other participants included Otter Creek, iSelect, and Jeff Ubben, founder of ValueAct Capital.
Growers Edge is sowing seeds of change in the agricultural sector by delivering financial solutions and data-powered instruments that empower farmers to mitigate risks and curtail expenses associated with embracing novel, eco-friendly products. The company stands as a frontrunner in the swift evolution of the American agri-fintech landscape.
A recent snapshot from 2023 reveals a surprising reliance on traditional methods, with 80 percent of grain transactions still relying on paper checks. However, the digital tide is turning rapidly, as just over three-quarters of agriculturalists are now “using or intending to use” digital payment platforms, a remarkable surge from just over one-third in the preceding year, signaling a fertile ground for fintech adoption in farming.
Growers Edge plans to direct the proceeds from the round toward scaling its financial solutions and widening its reach to ag retailers and lenders with a view to accelerate the adoption of climate-smart ag products and practices across the U.S. The company’s core operations are structured around three key pillars that foster the digital transformation of farming and the integration of pioneering techniques, ultimately promoting efficient and precise execution: firstly, bespoke software solutions empowering retailers to oversee and expand their portfolios of loans for crop inputs; secondly, crop assurance programs available to farmers via retailers, safeguarding cultivated land against potential losses; and thirdly, digital instruments designed to streamline the entire lifecycle of mortgage origination, closure and servicing.
Alastair Cooper, Partner and Head of Venture at Cibus Capital, stated: “U.S. farming has had to rely on archaic financial systems for too long. Growers Edge is leading a digital disruption of financing in US agriculture, helping to unlock environmental benefits at a farm level, economic benefits at grower and community level and social benefits at a systems level.”
Matt Hansen, CEO of Growers Edge, said: “This milestone is a testament to the creativity and tenacity of our incredible team. They’re the true innovators who continue to transform complex challenges into real-world solutions for growers, retailers, and lenders. We’re thrilled Cibus Capital has joined us on the journey.”
Separately, the Cibus Fund II, also advised by Cibus Capital, has acquired a majority stake in PSB Producción Vegetal, a Murcia, Spain-based specialist in fruit genetics and stone fruit breeding. This acquisition strategically positions PSB and Cibus to lead the development of climate-resilient, high-quality fruit varieties, effectively addressing the evolving demands of growers, consumers and the supply chain.
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