Key Takeaways:
- DXA Invest, a Rio de Janeiro-based firm, takes a significant position in Brazil’s agribusiness sector.
- The firm led a BRL 28 million funding round in A de Agro, a Brazilian Agri-FinTech company.
- A de Agro specializes in high-tech crop analysis services using proprietary machine learning.
- This move aligns with DXA’s strategy of diversifying into alternative investments.
- Agribusiness is a critical economic driver in Brazil, and it is expected to generate US$ 234 billion this year.
DXA Invest Expands into High-Tech Agribusiness Services in Brazil
DXA’s Strategic Investment in A de Agro
DXA Invest is expanding its portfolio of Brazilian startups by investing heavily in the country’s agricultural sector. The investment firm has recently led a BRL 28 million funding round (equivalent to USD 5.7 million) in A de Agro, a Brazilian firm specializing in Agri-FinTech. A de Agro provides advanced crop analysis services using proprietary machine-learning technology. Prior investors in A de Agro include SP Ventures, SVG Partners, and BTG Pactual.
Diversification into Agri-FinTech
DXA’s investment in A de Agro represents a strategic diversification into agri-fintech, reflecting the firm’s pursuit of alternative investments that thrive in diverse economic conditions. This approach aligns with a growing trend among affluent investors to seek higher returns from such investments. DXA’s portfolio includes successful ventures in various sectors, including Zee Dog, BeautyforAll, Greenpeople, DOCG, and Modern Logistics.
Digital Transformation in Private Equity Investments
Oscar Decotelli, CEO of DXA Invest, highlights the firm’s unique position as Brazil’s first private markets firm to manage a 100 percent digital fintech platform. The digital transformation in finance is broadening investment opportunities, allowing a more comprehensive range of investors, including smaller ones, to participate in private equity investments that were previously inaccessible.
Brazil’s Agribusiness Sector as an Economic Pillar
Agribusiness plays a vital role in Brazil’s economy, with the sector forecasted to generate substantial revenue this year. Brazil is a major global agricultural exporter, with agribusiness products accounting for nearly half of the country’s foreign trade. The sector includes farming and supports related industries such as agricultural machinery, fertilizers, storage, logistics, and financial services.
Latin American Venture Capital Boom
Latin America, particularly Brazil, is experiencing a surge in entrepreneurship and venture capital investments in startups. This trend is fueled by the region’s innovation, diversified markets, and growing middle class, which forms a robust consumer base. The influx of investments since the end of the pandemic is a testament to the region’s attractiveness to investors.
Future Prospects for DXA Invest
Given the promising outlook for technology companies in the region, which currently represent a small percentage of GDP, DXA Invest is committed to further investing in Brazilian startups. The firm’s focus includes technology-driven agribusiness, with plans for substantial investments throughout 2024.
