Agtech company ProducePay partnered with MAVRK Capital to help expand its reach. The companies said this deal, in which MAVRK Capital has agreed to a minimum commitment of $500 million in initial forward flow capital, to help fund more Predictable Commerce Programs in fresh produce.
MAVRK Capital is owned and operated by Four Star Fruit, a producer and marketer of table grapes.
ProducePay’s Predictable Commerce Programs help growers and marketers meet national retailers’ year-round demand for high-quality fresh produce with stable pricing while managing increasingly more volatile supply chains.
The company said its partnership Four Star Fruit will help provide growers participating in Predictable Commerce Programs with financing to fuel business growth while reducing risk. The companies say this partnership will help reduce the risk associated with financing harvests, which lowers the total cost of capital for the supply chain.
The companies say this helps mitigate some of the unique challenges within the fresh produce industry including volatile pricing and economic cycles that stress banks leading to inconsistent lending and traditional loans needing high leverage.
“We’re singularly focused on identifying new ways to help growers and marketers expand while minimizing the uncertainty and volatility that has historically held the fresh produce industry back, ” said Patrick McCullough, CEO of ProducePay. “With the MAVRK Capital partnership, we’re unlocking industry-wide growth by offering farmers predictability in the form of capital, informed by decades of fresh produce experience, and with direct ties to buyer commitments.”
