GrainChain, a commodities tracing platform that makes use of good contracts to open up liquidity for low-income farmers, has raised $8.2 million in its newest funding spherical, the corporate introduced Friday.
Luis Macias mentioned the cash will bolster GrainChain’s burgeoning operations in Mexico, Honduras and the southwest United States.
“This funding is de facto going to permit us so as to add to our operations and scale up the degrees that we’re anticipating, giving us the flexibility to implement throughout the whole provide chain,” he mentioned.
Overstock VC wing Medici Ventures contributed the majority at $5 million. An early backer of GrainChain with a $2.5 million fairness stake in late 2018, Medici had beforehand agreed to contemplate buying future fairness. It now controls 17.65 p.c of GrainChain, based on a Medici spokesperson.
Different new backers embrace Eden Block, based on a press launch.
GrainChain envisions itself as a type of glue between disparate actors within the agriculture provide chain. It brings farmers, bankers, insurers, exporters and commerce associations on a unified blockchain platform the place they will validate the motion of crops and commodities, and even make funds by way of event-triggered good contracts.
Final September, a part of that imaginative and prescient took type as GrainChain inked offers with stakeholders from throughout the Honduran espresso trade. This included low-income farmers choosing the beans, a lot of whom battle to safe loans from bankers weary of provide chain inefficiencies.
Each farmers and bankers expressed hope on the time that GrainChain’s traceability belief issue might change that.
Medici’s CEO Jonathan Johnson mentioned the VC received on board to assist help GrainChain’s efforts to “remove middlemen and re-humanize commerce.”
Macias mentioned the platform has attracted curiosity from extra provide chain stakeholders within the time since. “Persons are excited concerning the implementation,” he mentioned.
The brand new funding will even construct out GrainChain’s world presence. Macias mentioned that he’s presently brokering offers in two extra international locations that he expects to announce later this 12 months.
“We’re happy to help their continued world growth.” Medici’s Johnson mentioned.
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