BASF Venture Capital, the corporate venture company of BASF, is making its first direct investment in South America, leading a $10 million investment round in the financial services provider TraiveTM, that was founded in 2018.
Based in Brazil and the US, TraiveTM is developing a technology infrastructure for financial services and artificial intelligence for credit risk analysis and portfolio management.
In Brazil, as in other South American countries, agriculture is one of the most important economic segments. In 2022, the agricultural sector will account for 27.4 percent of Brazil’s gross domestic product. According to a study (“Radar Agtech Brasil 2020/2021”), the number of startups in the agricultural sector grew by 40% in 2021 compared to 2019 to a total of 1,574.
Parallel to the growing AgTech startup scene, financial service providers specializing in the agricultural industry are gaining importance. Traive™ is a financial platform that digitizes the entire path of agricultural credit – from the farmer’s demand to the financial market – and reduces the effort involved in obtaining and managing loans. The proprietary technology allows crop protection product manufacturers, traders, farmers, cooperatives and trading companies to review, register, manage and trade their loans on a single platform. In addition, artificial intelligence generates an immediate risk assessment that helps credit managers, banks and FinTechs make more targeted and dynamic decisions, reduce costs and mitigate financial risks through real-time monitoring of credit portfolio risk.
Markus Solibieda, Managing Director of BASF Venture Capital, says: “We are proud of our first direct investment in South America. It underlines our mission to foster new business models and innovation to meet today’s challenges in the chemical industry as well as in increasingly complex agriculture.”
“Traive™ and BASF both aspire to drive digitalization in agriculture and to be business partners for the entire value chain, i.e. for industry, cooperatives, retailers and farmers. We look forward to exploring our synergy potential together,” adds Karime Hajar Alves, Investment Manager at BASF Venture Capital in South America.
“Our technology platform has the potential to fundamentally change the way credit and risk are measured, monitored and commercialized in the agricultural industry. The commitment of BASF Venture Capital and the combination of institutional and strategic investors in this round gives us a tailwind,” says Fabricio Pezente, co-founder and CEO of Traive™.
About BASF Venture Capital
At BASF, we create chemistry for a sustainable future. BASF Venture Capital GmbH also contributes to this corporate purpose. Founded in 2001, BASF Venture Capital invests in Europe, the U.S., Canada, China, India, Brazil, and Israel. Our goal is to generate new growth potential for current and future business areas of BASF by investing in young companies and funds. The focus of our venture investments includes Decarbonization, Circular Economy, AgTech, New Materials, Digitization, and New, Disruptive Business Models. Weitere Informationen unter www.basf-vc.de.
Headquartered in the USA and working in Brazil, Traive is a technology platform that connects people and markets with data intelligence. We create technology-powered smart connections and integrated solutions, helping industries, retailers, cooperatives and farmers access the resources they need to thrive. We are the only platform to offer a complete and integrated solution that provides operational efficiency connecting farmers and end-investors, enabling analysis, portfolio management, documentation management, and credit risk monitoring on a single platform. To learn more, visit www.traivefinance.com.