EthicHub Company Profile

Background

Overview

EthicHub is a Madrid-based social enterprise founded in 2017 that leverages blockchain technology to connect unbanked smallholder farmers with global investors, facilitating access to affordable financing and international markets. The platform aims to enhance financial inclusion, promote direct trade, and support agricultural regeneration. By bridging the gap between underserved farmers and investors, EthicHub seeks to create a regenerative economy that benefits all stakeholders.

Mission and Vision

EthicHub's mission is to empower smallholder farmers by providing them with the necessary resources to improve productivity and quality, thereby enhancing their livelihoods and promoting sustainable agricultural practices. The vision is to establish a decentralized financial ecosystem that fosters inclusivity, transparency, and environmental stewardship, contributing to the achievement of the United Nations Sustainable Development Goals (SDGs).

Industry Significance

Operating within the fintech and agritech sectors, EthicHub addresses the critical issue of financial exclusion affecting over a billion smallholder farmers worldwide. By integrating blockchain technology into the agricultural financing landscape, EthicHub introduces a transparent and efficient model that challenges traditional financial systems, offering a scalable solution to global poverty and food security challenges.

Key Strategic Focus

Core Objectives

Financial Inclusion: Provide unbanked farmers with access to affordable financing, enabling them to invest in their agricultural activities and improve productivity.

Direct Trade: Establish direct connections between farmers and international buyers, ensuring fair compensation and reducing reliance on intermediaries.

Sustainable Development: Promote regenerative agricultural practices that enhance environmental sustainability and biodiversity.

Areas of Specialization

Crowd-Lending Platform: Facilitate peer-to-peer lending where investors fund agricultural projects, earning returns while supporting farmers.

Blockchain Integration: Utilize blockchain technology to ensure transparency, traceability, and security in financial transactions.

Impact Investing: Focus on investments that generate measurable social and environmental impacts alongside financial returns.

Key Technologies Utilized

Blockchain Technology: Implement smart contracts on the Ethereum blockchain to automate and secure transactions.

Decentralized Finance (DeFi): Leverage DeFi protocols to provide liquidity and collateral mechanisms, enhancing the platform's efficiency and scalability.

Primary Markets Targeted

Smallholder Farmers: Particularly in Latin America, including Mexico, Brazil, and Honduras, who lack access to traditional financial services.

Impact Investors: Individuals and institutions seeking to invest in projects that offer both financial returns and positive social impact.

Financials and Funding

Funding History

EthicHub has raised a total of $2.14 million over eight funding rounds, with the latest round completed on February 23, 2025.

Recent Funding Rounds

February 2025: Venture - Series Unknown round.

Notable Investors

Bybit: A global cryptocurrency exchange platform.

Heifer International: A leading NGO focused on ending hunger and poverty through sustainable agriculture.

Utilization of Capital

The funds raised are primarily allocated towards expanding the platform's technological infrastructure, enhancing user experience, scaling operations to new regions, and developing educational initiatives to onboard more farmers and investors.

Pipeline Development

Key Pipeline Candidates

Honduras Expansion: Initiated a pilot project in Honduras in 2021, partnering with local cooperative CODICAFE to provide financing to smallholder coffee farmers.

Heifer International Partnership: In September 2024, secured a $420,000 investment from Heifer Impact Capital to finance small coffee producers in Chiapas, Mexico.

Stages of Development

Pilot Projects: Conducting pilot programs in new regions to assess feasibility and impact.

Scaling Operations: Expanding successful pilot projects to reach a larger number of farmers and investors.

Target Conditions

Financial Inclusion: Providing access to affordable financing for unbanked farmers.

Market Access: Connecting farmers with international buyers to secure fair prices for their products.

Anticipated Milestones

Short-Term: Launch additional pilot projects in new countries.

Medium-Term: Achieve a significant increase in the number of farmers and investors on the platform.

Long-Term: Establish EthicHub as a leading platform for sustainable agricultural financing globally.

Technological Platform and Innovation

Proprietary Technologies

Ethix Token: A native token used as collateral to secure loans, reducing risk for investors and enabling lower interest rates for farmers.

Significant Scientific Methods

Smart Contracts: Automate loan agreements and repayments, ensuring transparency and reducing administrative costs.

Blockchain Analytics: Monitor and verify transactions to maintain trust and integrity within the platform.

Leadership Team

Gabriela Chang

Position: Co-founder and Chief Strategy Officer.

Background: Expert in blockchain technology and social impact investing, with a focus on financial inclusion.

Contributions: Led the development of EthicHub's strategic partnerships and expansion initiatives.

Jori Armbruster

Position: Co-founder and Chief Executive Officer.

Background: Experienced in fintech and social entrepreneurship, with a passion for leveraging technology for social good.

Contributions: Oversees overall operations and strategic direction of the company.

Iñigo Molero Manglano

Position: Co-founder and Chief Technology Officer.

Background: Specializes in blockchain development and decentralized finance solutions.

Contributions: Responsible for the technological infrastructure and innovation at EthicHub.

Market and Competitor Profile

Market Insights and Dynamics

The market for agricultural financing is vast, with millions of smallholder farmers globally lacking access to traditional financial services. The integration of blockchain technology into this sector is a growing trend, offering transparency and efficiency. EthicHub's focus on coffee farmers positions it uniquely within the specialty coffee market, which is valued at over $200 billion globally.

Competitor Analysis

Rural Farmers Hub: Provides real-time crop insights to help farmers increase productivity.

Farmlite Co-farming Hub: Creates a strong value chain between investors, farmers, and the market.

Marhaba Decentralized Financial Platform: Offers inclusive DeFi solutions for various sectors.

Strategic Collaborations and Partnerships

Heifer International: Invested $420,000 to support small coffee producers in Mexico.

Bybit: A global cryptocurrency exchange platform that has invested in EthicHub.

Operational Insights

Strategic Considerations

EthicHub differentiates itself by combining blockchain technology with a focus on smallholder farmers, offering a transparent and efficient financing model. Its partnerships with organizations like Heifer International enhance credibility and expand reach. The platform's emphasis on high-quality, sustainable coffee appeals to a growing market of ethically conscious consumers.

Strategic Opportunities and Future Directions

Strategic Roadmap

Short-Term: Expand pilot projects to additional countries and regions.

Medium-Term: Enhance platform features to improve user experience for both farmers and investors.

Long-Term: Establish EthicHub as a leading global platform for sustainable agricultural financing.

Opportunities for Expansion

Geographical Expansion: Targeting new markets in Africa and Asia to reach more farmers.

Product Diversification: Extending services to other agricultural products beyond coffee.

Future Objectives

To scale operations, increase the number of farmers and investors on the platform, and achieve significant social and environmental impact through sustainable agricultural financing.