Agrosmart from Brazil wraps up US$5.5 million Series A

Contxto – Certain farming methodologies once revolved around fears of the supernatural and bird migrations. Nowadays, though, farmers are using technology and data to effectively till the soil.

Agrosmart is one company improving agricultural methods. Previously featured in our agrotech Brazilian agrotech Market Map, the startup just raised a Series A worth R$22 million, approximately US$5.5 million.

Capital came from Bradesco’s Inovabra Fund as well as Positivo’s corporate VC arm. Going forward, the funds will go towards international expansion and launching new features, such as farmer insurance programs in case of crop disease.

Futuristic farming 

Whether cultivating fruits, vegetables, and other crops, farmers resort to Agrosmart’s monitoring software to bring harvest or field maintenance to the next level. 

This is especially the case for the Brazilian agricultural industry worth around US$65.56 billion. While the economy traditionally revolved around sugarcane, now Brazil is the largest exporter of coffee, soybeans, crop-based ethanol, in addition to beef, in the world.

With installed sensors in the fields, the startup gathers information pertaining to soil moisture, plant hydration, weather conditions, etc. Following this, the startup then compares these KPIs (key performance indicators) to drones and satellite databases.

In the end, this data shines a valuable light on irrigation efficiency, real-time field conditions, as well as the agribusiness value chain. All the while, it results in more efficient crop management, reduced costs, not to mention increased productivity.

Partners have ended up saving 60 percent of water consumption and 40 percent in energy spending thanks to Agrosmart’s solution. At the same time, the company led by CEO Mariana Vasconcelos has also improved the supply chain with sustainability and transparency.  

Since it’s 2014 founding, Agrosmart works with distributors throughout seven Latin American countries with a branch in the United States. Vasconcelos created the company alongside Raphael Pizzi and Thales Nicoleti.

Business model 

Logistically, Agrosmart uses an annual subscription model ranging from R$180 to R$500,000, the average cost being R$40,000 per year. Pricing depends on the number of crops and the level of intelligence required.

Part of these fees also entails equipment installation, which Agrosmart subsidizes when it enters a new farm. In turn, this lengthens the return of investment. 

“After the second or third harvest, we already have this return,” said Vasconcelos. “Being a recurrence model, we are creating value for the company over time.”

Coca-Cola happens to be one of Agrosmart’s clients, according to the Brazil Journal. The multinational corporation employed its technology among fruit suppliers for Dell Vale juice in Espírito Santo to curb water consumption.

-JA