Silo, a produce industry-focused software company that allows wholesale distributors and shippers to automate operations, react to market trends and access capital, continues to expand its capital solutions after securing up to $100 million in uncommitted financing from Jeffries, a New York-based diversified financials services company, on June 30, 2022.
The Jefferies financing will empower Silo to expand its “produce-forward capital solutions further across the industry,” the company said.
With offices in San Francisco and New York City, Silo offers a consultative and produce-focused funding and cash flow management experience to distributors and shippers looking to invest back into their business.
“We’ve started with our customers and worked backwards in designing our capital solutions to focus on the unique challenges the produce industry faces,” said Jeff Butler, general manager of Capital at Silo. “We’re dedicated exclusively to fresh produce, and we strive to deeply understand our customers. We understand the landscape and our technology platform is built to help businesses grow. In many ways we are better equipped to be a long-term strategic technology and capital partner as the industry evolves.”
Through Silo Instant Pay and Silo Credit Line, customers are able to experience a flywheel effect across their growth potential, said the company.
“Silo’s Instant Pay is my top-secret bridge and facilitator of new business,” said Cesar Garcia, sales director at New Mundoexport Fruits, Inc., in a release. “In four months, we’ve been able to expand into new products and build relationships with 10 new customers. The ability to pay upfront in cash has translated to better quality and higher profits for our business.”
For an industry already operating on slim margins, the Silo and Jeffries partnership is a timely one, said the company, adding that rising interest rates are disrupting the ability of growers, shippers and distributors to access capital at favorable rates. The result, says Silo, is lower margins and stunted growth as well as higher prices and lower supply for consumers.
“At Silo, we focus on business workflow efficiencies – logistically and financially,” said Ashton Braun, Silo CEO and co-founder. “Cash-flow challenges continue to be one of the biggest reasons great companies aren’t able to meet their growth potential. We’re on a mission to change that.”
Since securing the financing with Jefferies, Silo says its capital program has shown consistently accelerating growth. “At Silo, we’re problem solvers,” Butler said. “For those who recognize the impact of cash flow dips or [for those searching] for a more collaborative business lender, these solutions were built for you.”
Using data and technology, Silo says it offers seamless, automated and discrete access to cost- effective working capital to equip businesses in the produce supply chain with the software, financial tools and industry connections necessary to thrive.
