Financial technology platform ProducePay Inc. has found $38 million of series D funding. Based in downtown, ProducePay provides market intelligence services to produce farmers and operates a commodity trading marketplace that connects those farmers with retailers, consumers and distributors to sell their crops and produce.

The company said that due to the large distances that produce shipments often must travel and the number of intermediaries that handle that produce along the way, there are many opportunities for the supply chain to be disrupted. 

In addition, issues such as unpredictable weather, unstable market conditions and pests can lead to wasted goods and lost income. 

To address this, ProducePay’s platform tracks market prices for perishable fruit and vegetables and operates a direct-to-retail marketplace to streamline delivery for retailers while ensuring payment to farmers.

The company launched a new tool last year called the Predictable Commerce Platform, which enables direct transactions between growers and retailers in its network.

ProducePay oversees and provides data to growers and retailers in its network through every step of the transaction and shipping via this tool. The company said that the transparency provided by the platform, as well as the quality control conducted by on-the-ground agriculture experts, has helped increase predictability of the supply chain and lower the rate of delivery rejection from retailers.

“The fresh produce industry is critical to feeding a growing world with sustainable and healthy food, and an economic engine for many rural communities across the globe,” ProducePay Chief Executive Patrick McCullough said in a statement. “Given the importance of this industry, it’s essential that we support the entire vertical – from grower to retailer – by eliminating the volatility and unpredictability that limit economic growth and investments in sustainable practices and that result in inefficient forms of waste throughout the supply chain. 

This requires developing tools and new ways of doing business that give growers and buyers greater control of their business by providing unprecedented access to each other, capital, trading, insights and greater supply chain visibility.” 

McCullough stepped in as chief executive of ProducePay in January of last year, replacing founder Pablo Borquez Schwarzbeck. Borquez Schwarzbeck is staying on as the company’s executive director of the board.

The company said it has a network of more than 1,000 growers, buyers and distributors and operates in over 20 countries.

The network is free for farmers to join, though they are vetted to ensure operations meet environment, labor and working conditions outlined by The World Bank. 

ProducePay earns its revenue by taking a commission rate from transactions conducted on its platform.

Prior to this series D funding round, ProducePay closed $43 million of series C funding in 2021 and currently has more than $500 million in debt and equity combined. 

A company spokesperson said that the financing will be used to advance platform operations and to accelerate its global expansion.

“Extreme weather events, supply shortages and price fluctuations are just a few examples of factors contributing to the increasing volatility of the fresh produce industry,” McCullough said.