Verqor Company Profile

Background

Overview

Verqor is a Mexican agri-fintech company founded in 2018, dedicated to providing smallholder farmers with access to affordable, cashless credit for purchasing agricultural supplies. By connecting farmers with a network of vetted buyers, Verqor enables them to formalize transactions, build digital financial histories, and sell produce at competitive prices.

Mission and Vision

Verqor's mission is to empower smallholder farmers in Mexico by offering innovative financial solutions that enhance productivity and financial inclusion. The company's vision is to modernize the agricultural sector through technology and data-driven financial services, bridging the gap between farmers, suppliers, and buyers.

Industry Significance

In Mexico, over 90% of smallholder farmers lack access to formal financing, hindering their ability to invest in quality inputs and technologies. Verqor addresses this challenge by providing cashless credits, thereby promoting sustainable agricultural practices and improving the livelihoods of farmers.

Key Strategic Focus

Core Objectives

Financial Inclusion: Offer accessible credit solutions to underserved farmers, enabling them to invest in agricultural inputs and technologies.

Supply Chain Integration: Connect farmers with suppliers and buyers to streamline operations and enhance market access.

Data-Driven Decision Making: Utilize alternative data sources to assess creditworthiness and manage risk effectively.

Areas of Specialization

Digital Credit Platforms: Develop and manage platforms that facilitate cashless transactions for agricultural inputs.

Agricultural Supply Chain Management: Integrate various stakeholders in the agricultural value chain to improve efficiency and transparency.

Key Technologies Utilized

Alternative Credit Scoring: Employ data-driven models, including the Normalized Difference Vegetation Index (NDVI), supply chain trends, weather data, and product prices, to evaluate farmers' creditworthiness.

Mobile Platforms: Provide user-friendly mobile applications for farmers to access credit, order supplies, and connect with buyers.

Primary Markets Targeted

Smallholder Farmers: Focus on farmers in rural Mexico who lack access to formal financial services.

Agricultural Suppliers and Buyers: Engage with suppliers of agricultural inputs and buyers of produce to create a cohesive ecosystem.

Financials and Funding

Total Funds Raised

As of November 2023, Verqor has secured a total of $7.5 million in funding.

Recent Funding Rounds

Pre-Series A Round: In September 2023, Verqor raised $4 million, led by Yara Growth Ventures, with participation from Accion Venture Lab, SP Ventures, Glocal, and Amplifica Capital.

Debt Financing: In October 2023, Verqor secured an additional $3.5 million in debt financing from Co_Capital and Addem Capital.

Notable Investors

Yara Growth Ventures: Led the pre-Series A round in September 2023.

Accion Venture Lab: Participated in the pre-Series A round in September 2023.

SP Ventures: Participated in the pre-Series A round in September 2023.

Glocal: Participated in the pre-Series A round in September 2023.

Amplifica Capital: Participated in the pre-Series A round in September 2023.

Co_Capital: Provided debt financing in October 2023.

Addem Capital: Provided debt financing in October 2023.

Utilization of Capital

The funds are intended to expand Verqor's operations across Mexico, increase partnerships with agricultural input suppliers, and enhance the technology platform to expedite credit approval processes.

Pipeline Development

Key Pipeline Candidates

Verqor's primary focus is on developing and scaling its digital credit platform to serve a growing number of smallholder farmers across Mexico.

Stages of Development

Platform Enhancement: Ongoing improvements to the mobile application and backend systems to support a larger user base and integrate additional services.

Partnership Expansion: Establishing new collaborations with agricultural input suppliers and buyers to broaden the range of services offered to farmers.

Target Conditions

The platform aims to address the financial inclusion challenges faced by smallholder farmers, enabling them to access necessary inputs and markets.

Anticipated Milestones

User Growth: Increase the number of farmers using the platform by a significant percentage over the next year.

Geographic Expansion: Extend services to additional regions within Mexico, reaching more underserved communities.

Technological Platform and Innovation

Proprietary Technologies

Alternative Credit Scoring System: Utilizes a data-driven approach to assess farmers' creditworthiness, incorporating various agricultural and environmental data points.

Significant Scientific Methods

Data Analytics: Employs advanced analytics to process and interpret large datasets, facilitating informed decision-making and risk management.

Mobile Application Development: Develops intuitive mobile platforms to ensure ease of use for farmers with varying levels of digital literacy.

Leadership Team

Co-Founders and Key Executives

J. Hugo Garduño Ortega: Co-Founder and CEO. A serial and social entrepreneur with a background in finance, Hugo holds a BBA in Finance from the Universidad Panamericana in Mexico City and has experience in developing business strategies and managing investment portfolios.

Valentina Rogacheva: Co-Founder and COO. With a background in social business administration, Valentina is responsible for internal operations, ensuring high team performance, and providing necessary resources to achieve company goals.

Competitor Profile

Market Insights and Dynamics

The Mexican agricultural sector is characterized by a large number of smallholder farmers who often lack access to formal financial services. The market is fragmented, with numerous players offering various solutions to address these challenges.

Competitor Analysis

AgriFintech Companies: Several startups are emerging in the agri-fintech space, offering digital financial services to farmers.

Traditional Financial Institutions: Banks and microfinance institutions are exploring ways to serve the agricultural sector but often face challenges due to the informal nature of many farmers' operations.

Strategic Collaborations and Partnerships

Verqor has established partnerships with various investors and organizations to enhance its service offerings and expand its reach. Notably, it has collaborated with Rippleworks to develop a customer experience and service map for its product.

Operational Insights

Verqor differentiates itself by offering cashless credits specifically tailored for agricultural inputs, thereby reducing the risk of misuse of funds. The company's data-driven credit assessment model allows for more accurate evaluation of farmers' creditworthiness, setting it apart from traditional financial institutions.

Strategic Opportunities and Future Directions

Strategic Roadmap

Platform Expansion: Enhance the digital platform to support a larger user base and integrate additional services such as agricultural insurance and advanced analytics.

Geographic Growth: Expand operations to other regions within Mexico and explore opportunities in neighboring countries with similar agricultural profiles.

Product Diversification: Introduce new financial products and services that cater to the evolving needs of smallholder farmers.

Future Business Directions

Verqor aims to become the leading provider of digital financial services for smallholder farmers in Latin America, leveraging technology and data to drive sustainable agricultural development.

Opportunities for Expansion

The company is well-positioned to expand its partnerships with agricultural input suppliers and buyers, creating a more integrated and efficient agricultural value chain.

Competitive Advantages

Verqor's unique combination of cashless credit offerings, data-driven credit assessment, and a user-friendly mobile platform provides a strong competitive edge in the agri-fintech sector.