Basf invests in Traive, the Agricultural Credit Fintech
Traive — a fintech company that connects the capital market to agricultural credit — has raised a $10 million seed round led by Basf Venture Capital, the venture capital investment arm of a multinational pesticide company.
The startup founded by the spouses Fabricio and Alain Pezzenti had already raised $ 17 million in Series A, in 2021, in which Syngenta, Minerva, Serasa, Astella, SP Ventures and Tiger Global participated.
Today’s round is a “pre-series B”, where the dilution of fintech capital will only be confirmed in the actual formation of a future series B. Traive was literally born within MIT. While at AUC in 2017, Fabricio (ex-Credit Suisse) and Allen (ex-Cargill) began charting the idea of how to more effectively connect those who give credit to those who need money, by digitizing the agricultural credit process.
In practice, the startup technology allows pesticide companies, retailers, cooperatives and trading companies to analyze, register, manage and sell their credits on a single platform. Thanks to the artificial intelligence models developed by Traive, a real-time risk assessment of the credit portfolio of companies in the agricultural chain is also carried out.
“With less information asymmetry, banks and managers will be able to make more accurate decisions, reduce costs and mitigate financial risk. In other words, we believe the solution will help reduce the interest rate and increase the deductible,” Fabricio, who also serves as CEO, told the Brasil Journal. . For BASF, being a partner of the startup gives a different perspective on the Brazilian agribusiness supply chain.
“We are betting a lot on the digitalization of agriculture, which will affect the entire value chain, from industry to farms, including the entire distribution and distribution network. There is great potential for together,” says Karim Hajer, Investment Director at Basf Venture Capital in South America.
This is the first direct investment of the multinational venture capital division in the region, which since its creation in 2001 has only invested in South America through funds. In Brazil, the company invested $4 million in 2019 in an agricultural technology fund managed by SP Ventures.