JICA signs deal to invest in Brazilian farm fintech firm

The Japanese government-backed agency held a signing ceremony Wednesday in Sao Paulo, the biggest city in Brazil.

It hopes the investment will help ensure stable food procurement by Japan, which imports such crops as soybeans and corns from the South American agricultural giant.

Fund procurement has been a bottleneck for small- and medium-sized Brazilian farmers, who account for over 70 pct of all farmers in the country.

By utilizing information technology, Agrolend successfully shortened the period needed for screening loan applications.

The company has allowed farmers in need of funds to purchase seeds and fertilizers to apply for financing via the WhatsApp communication app and receive loans quickly.

Established in December 2020, Agrolend provides financing services to some 2,700 farmers in Brazil.

In the latest fund raising deal aimed at expanding its businesses, the company procured 56 million dollars from JICA and others.

Agrolend CEO Andre Glezer noted that expanding Brazilian agriculture is important for the world.

He unveiled the company's policy of aiming to list its shares on the New York market in the future.

Since the 1970s, JICA has been cooperating in the agricultural development of the Brazilian cerrado, or tropical savanna, to help the country develop into an agricultural exporter.

"It's highly significant to collaborate with Brazil in terms of food security," JICA Brazil Office chief Akihiro Miyazaki said.