February 13, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Syngenta Group Ventures has led a $38 million Series D for ProducePay, recognized as one of Fast Company’s Most Innovative Companies and the World Economic Forum’s newest Unicorn Innovators for its work transforming and strengthening fresh produce supply chains. 

Joining Syngenta Group Ventures in this round were new investor CF Private Equity, along with existing investors G2 Venture Partners, Anterra Capital, Astanor Ventures, Endeavor8, Avenue Venture Opportunities, Avenue Sustainable Solutions, and Red Bear Angels. 

It was also noted that due to oversubscribed demand, this Series D round will remain open while additional investors conduct due diligence. 

Founded by fourth-generation farmer Pablo Borquez Schwarzbeck, ProducePay’s Predictable Commerce Platform gives growers and buyers greater control by providing unprecedented access to each other, capital, trading, insights, and supply chain transparency. 

The company’s transformational approach is unlocking value by eliminating economic and food waste resulting from the volatile and opaque nature of today’s fresh produce value chain. And with the capital gained through this round, stated that it intends to accelerate its global expansion to Europe, Asia, Africa, and Australia. 

“Extreme weather events, supply shortages, and price fluctuations are just a few examples of factors contributing to the increasing volatility of the fresh produce industry,” said Patrick McCullough, CEO, ProducePay.

To-date, the company has supported more than $4.5 billion in fresh produce transactions on a global scale, and also plans to advance the development of best-in-class technology and services including the establishment of comprehensive Predictable Commerce Programs in partnership with industry leaders and innovators. 

“Our exponential growth and global scalability attracted a best-in-class group of investors who valued the company at a significant up-round from our last funding,” said McCullough. “We appreciate their support as we take ProducePay to the next level of helping growers, marketers and retailers around the world expertly manage these volatilities to avoid disruption of their business – while reducing the massive amount of economic and food waste that impacts every touch point across the supply chain.”

An example of such partnership is its latest forged with Four Star Fruit – one of the largest growers and shippers of table grapes in the world. With ProducePay they have created a first-of-its-kind Predictable Commerce Program that has significantly improved efficiency and waste reduction for the company in only six months. Since beginning in March 2023, the program has enabled:

~ 90 percent reduction in rejection rate to nearly 0 percent. 

~ 31 percent fewer days in transit for fresh produce.

~ 50 percent fewer stops along the delivery pathway to retail.

~ 41 percent fewer days in cold storage.

~ and a reduction of 356 tons of CO2e that would otherwise have been emitted from food waste.

ProducePay and its investors intend to replicate this success with more partners, more produce categories, and more regions around the world. “ProducePay’s mission aligns closely with Syngenta’s commitment to innovation and to making agriculture more sustainable,” said David Pierson, managing director, Syngenta Group Ventures.

“By connecting growers from around the world with quality retailers and buyers, ProducePay is making it possible to reduce food and economic waste while giving farmers greater financial security, and we are excited by this opportunity to work closely for a stronger future in agriculture.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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