2020-06-03 08:00

Raiffeisen Bank invested in Russian start-up Agro.Club

Russian Agro Tech market seems to be a promising area for a potential investor, although quite risky. Raiffeisen Bank decided to take a risk and invested in a promising start-up Agro.Club. The start-up brings together farmers, producers, suppliers and processors of grain.

According to a one of the most respected Russian financial newspaper Kommersant, Raiffeisen Bank subsidiary Elevator Ventures in partnership with SpeedInvest fund invested 1.5 mln USD in Agro.Club taking into consideration Elevator Ventures investment limit of 3 mln USD for 25% of the start-ups share.

The Agro.Club includes online marketplace for seeds, agrochemicals and machinery, where farmers can communicate with each other, and also publishes market analytics. Farmers are given the opportunity to sell their seeds, and the company accompanies all transactions, guaranteeing transaction security and product quality.

Every month more than 2 million tons of grain is put up for sale at Agro.Club web-site. Producers, meanwhile, can use the service free of charge, as buyers pay a 1% commission from the transaction. According to the forecast of the renown Russian agency Sovecon, this season's grain harvest will amount to 126.3 mln tons, and wheat - 81.2 mln tons.

For reference. Agro.Club is a Russian start-up operating in Russia and North America that managed to attract more than 20% of the Russian farmers for the first 6 months of work.

Manufactured in Russia // Made in Russia

Author: Daniel Zagidullin