By Lynda Kiernan-Stone, Global AgInvesting Media
It is a universal truth that smallholders and family-sized farmers produce the bulk of the food consumed globally. However, despite being key to our collective future, these farmers are often excluded from access to financing, with the world’s financial institutions not yet recognizing and appraising these growers as valid borrowers.
But AgriG8 is looking to effect systemic change through the understanding that with the correct data and insights financiers would have the ability to drastically shift this landscape to a more equitable and sustainable model.
“AgriG8’s mission is to be the bridge between financial institutions and the enormous market of 475 million smallholder farmers globally,” said David Chen, CEO, AgriG8.
In support of this mission, The Trendlines Agrifood Fund Pte. Ltd. has made its first foray into the booming agri-fintech space through its investment in AgriG8.
Co-created in Q3 2021 with Golden Sunland Singapore Pte. Ltd (GSS), AgriG8 leverages the diverse field of experience and the knowledge regarding the agricultural smallholder ecosystem found among its founders to reinvent and create a new standard in agri-financing.
Born of an investor and innovation commercialization company, this fund was launched in 2019, when Trendlines Group secured up to $22 million in conditional capital for the vehicle, which is managed by its wholly owned subsidiary, Trendlines Agrifood Innovation Centre Pte. Ltd.
Announced in December 2018, the Trendlines Agrifood Innovation Centre was established to leverage technological and scientific expertise in Singapore and the surrounding region alongside Trendlines’ experience in investing in and building out companies that accelerate technological development. The center operates on dual tracks: first, to create new, innovation-based agrifood tech companies in Singapore, and second, to invest in foreign agrifood companies establishing their Asia-Pacific headquarters in Singapore.
“Trendlines sees a big gap in farmers’ access to sustainable financing especially for smallholder farmers in developing countries,” said Anton Wibowo, CEO, The Trendlines Agrifood Innovation Centre (AFIC). “We believe that AgriG8 brings a unique and creative approach to solving this problem. Their agronomy knowledge and innovative approach to farmer onboarding and retention will help financiers gain confidence in farmers’ performance and unlock an entirely new market segment.”
While it’s true that over the past decade big data and AI have driven huge advancements in smallholder farm advisory apps, such platforms are only effective if farmers are engaged. And that’s where AgriG8’s platform stands apart.
AgriG8 integrates real-time monitoring with proprietary analysis of farmers’ behavior to provide financial institutions: measurement, reporting, and verification (MRV) capabilities to reduce their lending risks.
AgriG8’s difference lies in its ability to use this data and insights to drive behavioral changes in farmers that promote sustainable agricultural practices via a gamification mechanism that creates real-world incentives such as differentiated borrowing rates and discounts on raw materials.
AgriG8’s sustainable loan origination and credit assurance platform unlocks critical capital resources for millions of borrowers that have, until today, fallen into the lending gap. And for financial institutions, it offers a way to quantify and validate ESG performance benchmarks.
Looking ahead, AgriG8, together with Garuda Robotics, its tech partner in platform and AI development, will advance its pilot in Q1 2022 alongside lending and NGO partners. And by Q3, plans include an expansion into Africa and Indonesia.
“We are planning to add a carbon emissions measurement tool into our platform, allowing both farmers and lenders to further quantify their climate related mandates,” said Chen. “Our goal is to provide new standards for agri-financing that benefits both the farmers and the lenders.”
– Lynda Kiernan-Stone is editor 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 Oilseed & Grain News. She can be reached at lkiernan-stone@
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