Description
AgroApp is an online platform for agribusiness finance, connecting farmers with input suppliers and banks. Through this website, farmers can search and compare different loan offers from different affiliated banks. The solution aims at providing easy access for entrepreneurs to financial resources to foster growth and development of their business. AgroApp simplifies and accelerates the process of obtaining a loan for farmers for the purchase of fertilizers, seeds and plant protection products. The farmer only needs to type the company’s registration number and the loan amount into the AgroApp chatbot, the app automatically generates an agricultural producer’s loan application, and banks receive an application ready for financing almost immediately and can make a preliminary decision on granting a loan in a few hours. Typically, the traditional process takes months, AgroApp significantly reduces this application time.
Technology
AgroApp integrates an agrobots with a software solution to speed up loan applications. Using data collection algorithm, AgroApp taps into over 70 open registries (aws of December 2023) to extract relevant farm data, such as farm identification codes. Based on the open data received, the system generates a credit report, which , through a CMR system, goes to the partners’ bank to make a decision on issuing a loan. AgroApp leverages a Telegram chatbot for instant application submissions. By entering the company's EDRPOU code and desired loan amount, farmers initiate the process. Partner banks process these applications within seconds.
Target
The main users of AgroApp are small and medium entrepreneurs, in particular farmers interested in accessing financial resources for the growth and development of their business. Initially, any farms with a land bank of at least 400 hectares and work experience of at least 2 years could participate in partner programs, then extended to partners with smaller land banks. Since February 2020, over 300 farmers have received loans through the application.
Business model
All lending applications’ costs and the platform’ services are free of charge for agricultural producers. AgroApp's monetization plan is aimed at banks, which pay the project a small fee for traffic received. To date (December 2023), 90 SMEs have received financing by using AgroApp, totaling about 400 million UAH through the Ukrainian government’s “Affordable Loans at 5-7-9 percent” program with state loan portfolio guarantees launched in response to the war. As AgroApp partners make up to 15 percent profit from the AgroApp solution, they willingly agree to pay a commission, due to which the project exists. Loans provided to farmers are with no interest (or as low as 0.01 percent per annum) and without collaterals for loans with a payback period of up to 6 months. A higher interest rate, between 7 and 16 percent, is applied to longer term loans.
Impact
AgroApp has the potential to streamline financial processes for farmers. The platform's automated credit application system, utilizing identification codes and predefined templates, accelerates loan processing compared to traditional methods. The direct linkage with over 70 registries fosters financial inclusion, empowering farmers with data-driven decision-making. Overall, AgroApp's innovative approach is aiming to achieve positive results in time and cost savings, reduced administrative burdens, and a transformative shift towards modernized and efficient agricultural practices.`
Partners
USAID; Chemonics; KMD; UKRAVIT; Cnektp; ACTAPTA - KŃÏB; Nika agrotrade; RivTrade; Vkursi Zemli; Startseeds
Four Betters
Better production
