In order to expand in Europe, Latvian fintech startup LANDE has raised a pre-seed round of €550,000. LATBAN is the lead investor in the round, with BADideas.fund joining them and additional funding coming from a Seedrs campaign.
Food export in Romania
Romania is a significant food exporter in the area, producing 10% of the grains and oilseeds used in the EU. There is potential for increased production output by making financing more accessible for medium and small farms to invest in enhancing their productivity and efficiency. Given the worsening global food crisis, this subject is crucial.
The total agricultural funding gap for small and medium-sized farms in the region is estimated to be €46B, reflecting the region’s high demand for agricultural financing. Farmers throughout Europe lack the resources to start the season because of the worsening energy crisis and the ensuing increase in production costs.
LANDE, agricultural financing, and crowdfunding platform which was founded in 2017 by Edgars Talums, Nikita Goncars assists small and medium-sized farms in obtaining capital by using collateral such as machinery, land, or future harvest.
How will Lande change the scenario in Romania?
LANDE’s expansion into Romania will benefit the country’s active agricultural sector, which is currently facing increased production costs as a result of the current geopolitical situation as well as the ongoing climate crisis.
The platform’s average interest rate is 10.9%, with a loan-to-value (LTV) of 42%. A SEPA (Single Euro Payments Area) bank account is required to become an investor on the platform. The platform has collaborated with LemonWay to achieve complete fund segregation, know-your-customer (KYC) procedures, and compliance with anti-money-laundering (AML) regulations.
LANDE announced a merger with the agricultural crowdfunding platform LendSecured in 2021, creating a full-service platform for agricultural financing and crowdfunding. The platform has so far operated in the Baltics, issuing over €4.5M in loans to date, with €3M in loans issued in 2022 and a financing volume of €15M expected in 2023. LANDE has financed over 300 local farmers in total.
“By enabling financial support to small and medium-sized European farms, LANDE is doing more than reducing the regional funding gap – we’re contributing to regional and global food affordability. More than 1700 investors have already registered on the platform to invest in Europe’s agricultural industry. It’s not only a good option to diversify one’s investment portfolio but also a chance to engage in supporting processes that affect billions of people’s lives,” said Nikita Goncars, CEO of LANDE.
