According to Punto Biz, this would be the second round for the startup, as it had raised US$350,000 “not too long ago.” The startup expects to close its second equity round by the time the coronavirus (Covid-19) pandemic eases up. So, perhaps by year’s end?
What we do know at the moment is that AgriRed intends to use those funds to expand its platform. First, it will enter Brazil and then eventually, the United States.
We’ve reached out to AgriRed for more details on their past as well as upcoming investment rounds; so we’ll keep you posted on that end.
AgriRed tackles slim margins for growers
Entrepreneurs Gabriel Vidal and Nicolás Peire launched AgriRed in 2017. Since then it’s participated in NXTP Labs’ accelerator program in 2018.
Through its business to business (B2B) platform, wholesale users can buy or sell material for crops such as fertilizers, seeds, and herbicides. By bringing both parties together, prices are reportedly more competitive thus providing growers more inexpensive options.
Through this dynamic, it’s hoped that their typically-narrow profit margins are favored.
It’s worth noting that in recent weeks, AgriRed’s platform has also seen a rise in users, sales, and consultations. No doubt it’s related to the Covid-19 outbreak. It’s likely that growers are realizing that e-commerce may be the way to go.
What’s more, these marketplaces for agriculture are still uncharted territory with a lot of potential to tap into.
Although that does pose its own set of challenges. As this sector is even less digitized than consumer goods, for example. Plus it conveys a larger logistics effort of moving goods to more out-of-reach places.
Agriculture needs to reap digital solutions and help
The world may feel the pains of coronavirus not only in its healthcare systems and wallets, but in its stomach too.
The Food and Agriculture Organization (FAO) stated that as of March it still doesn’t have an estimate on the virus’ overall impact on food security and agriculture.
Although it is quite certain of one thing: highly vulnerable populations throughout the globe are already experiencing food crises because of the pandemic.
Related articles: Tech and startups from Argentina!