Agrolend raises BRL 100 million for UPL in new financial model

The Brazilian fintech Agrolend has structured a BRL100 million (US$17.5 million) operation to finance the Indian agrochemical giant UPL. 

What makes this operation particularly interesting is not just the amount, but the financial engineering behind it.

Traditionally, companies like UPL rely on input resellers who purchase their products on credit, constantly increasing the risk of default. Agrolend has found an innovative solution: distributing credit among over 3,000 rural producers, which significantly reduces financial risk.

In practice, the startup advanced BRL100 million to UPL and assumed the responsibility of collecting payments directly from the farmers. According to those involved, this approach creates a healthier financial ecosystem: UPL secures its cash flow, resellers regain their purchasing power, and rural producers gain more payment flexibility.

André Glezer, founder of Agrolend, sees this operation as a significant milestone in their expansion strategy. He describes it as "the largest operation" the fintech has ever undertaken, emphasizing the project's complexity and relevance. Agrolend has been financing small and medium-sized rural producers in Brazil, in partnership with resellers, cooperatives, and input and equipment industries.

The operation doesn't stop there: UPL is already planning to expand the model, with expectations of reaching BRL200 million in the short term. For the Indian company, which earns 40% of its revenue in Latin America, this solution represents more than just financing - it's a smart growth strategy.

This case illustrates how digital banks and fintechs are reshaping the traditional credit model in Brazilian agribusiness. By combining technology, risk analysis, and a deep understanding of the sector, Agrolend shows that it is possible to create solutions that benefit all parties in the production chain.

More than just a financial operation, this story represents a new way of thinking about credit: one that is less bureaucratic, more collaborative, and truly aligned with the real needs of different players in Brazilian agribusiness.

Wholesale Bank for Agribusiness

Agrolend's operation with UPL is not just a success story but a harbinger of how financial innovation can be a powerful tool for economic development. Agrolend stated it is "making rapid strides towards becoming a wholesale bank for Agro," as the company had already positioned itself to its investors, which include Syngenta Ventures Group, Yara, and other capital management groups.

Vanessa Roberta Silva (UPL), Carlos Fagundes (CSO Agrolend)

"After our funding round, we launched operations and increased our average financing ticket by 30 times. This advancement was made possible through the cooperation of strategic partners like Vanessa Roberta Silva from UPL," the fintech commented.

They emphasize that, in less than a month, in close collaboration with the Credit Directorate, they facilitated a "customized BRL100 million operation so that the Indian giant UPL can continue to deliver growth in 2025 while reducing its collection risk."

Customized operations, with much agility and security, are the focus of the First Digital Bank for Agro. After a challenging 2024 for the sector, we will help our partners capitalize on this recovery cycle by offering credit and tools for risk management," Agrolend said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)