Cropital is the first and the only crowdfunding platform that enables individuals to help finance farmers in the Philippines, many of whom are quite old and live below the poverty line. A user simply selects the farm they wish to support from Cropital’s catalogue, then invests whatever money they wish – the minimum being 5,000 Philippine pesos, or roughly £4,000. The team at Cropital manages the financial risk, and ensures the finance is used to increase productivity on the farm. While investors can expect a return on their money, most of the profit goes to the farmer.
How they’re disrupting
Traditionally, farmers needed to approach informal lenders and loan sharks to get the capital they needed to start a farming cycle. This made them profit less due to the high interest rates (as high as 30% per month) put upon them. With Cropital, farmers get paid for labour and at the same time, take the majority of the profit – a significantly better deal than other lenders provide.
There are believed to be around 5 million farms in the Philippines.
Investments and future
To date, no investment data has been made public for Cropital. In the next 3 years the company hopes to cover most of the agricultural provinces in the Philippines. The 5 year plan is then to expand across SE Asia and developing nations across the world.