Sustainable agritech platform Rize has raised $31 million in a Series B funding round, which includes both equity and debt. The funding was led by BNP Paribas Asset Management Alts and Singapore's sovereign fund Temasek, among others, according to the company. Rize secured $20 million in equity and $11 million in debt, with the latter sourced from United Overseas Bank, Bank for Investment and Development of Vietnam, and the Temasek Foundation.
Funding Allocation
Dhruv Sawhney, founder and CEO of Rize, stated that the funds will be used to expand the company's operations in Vietnam and Indonesia. He indicated that India is also a potential market for future expansion. Rize currently collaborates with 17,000 farmers across 50,000 hectares in these countries, providing them with seeds, fertilizers, and equipment on a 150-day zero-interest credit basis. The company generates revenue by purchasing supplies in bulk and selling them to farmers, incorporating its profit margins into the pricing.
Market Context
The funding comes at a challenging time for agritech ventures in Southeast Asia, where venture capital funding has decreased following the collapse of the Indonesian startup eFishery due to financial misreporting. In April 2024, eFishery's founder was sentenced to nine years in prison, highlighting the scrutiny in the sector. Rize's new capital will also support the development of artificial intelligence tools for agronomists and enhance carbon certification self-reporting, as the company aims to decarbonize rice cultivation in the region.
The funding round may boost investor interest in agritech startups, particularly those focused on sustainability in Southeast Asia. This could lead to increased funding opportunities for similar companies facing capital challenges. Investors will watch for Rize's progress in expanding into India and its implementation of AI tools in its operations.