Tarfin, which enables farmers to access agricultural inputs such as fertilizer, seeds and feed with reasonable prices and payment opportunities at harvest, uses the agricultural risk scoring model it has developed based on machine learning.
Tarfin’s special mobile application offers comparative prices for the most up-to-date fertilizer, feed and other agricultural inputs in the regions where the farmers are located. Thus, farmers can compare different alternatives to find the best prices.
Turns its receivables into investment vehicles
Tarfin is issuing Asset Backed Securities (ADMK) by transforming its agricultural receivables into a structured investment instrument.
In this context, farmer receivables approved by Tarfin’s agricultural risk scoring model are offered to individual and institutional investors as a safe investment tool.
With the funding provided here, farmers have the opportunity to access agricultural inputs at more affordable prices. Lastly, the company, together with Pasha Bank and OMG Capital Advisors, issued an Asset Backed Securities (ABS) amounting to TL 50 million with an average maturity of 135 days on June 11, 2021, to be offered to qualified investors.
The issuance was successfully completed with the high demands of Turkey’s leading investment funds. It was evaluated in the “Highly Invested” category by JCR Eurasia and received an “AA-” credit rating. With the export, the agricultural inputs of approximately 6,000 farmers producing in 60 different provinces of Turkey were funded.
With this issuance, Tarfin has issued a total of 192 million TL of VAT. Established in 2017, Tarfin reaches farmers today with more than 500 authorized Tarfin sales points in more than 60 cities.
Farmers who want to purchase their agricultural needs from Tarfin on credit or in cash can visit the sales points in their provinces and complete their transactions within 4 minutes and receive their products instantly.
While making purchases at Tarfin with prices that suit their needs, farmers do not undertake additional obligations such as guarantors and mortgages, and determine the payment date according to the harvest date specific to their products and regions.
Received 3 rounds of investment
Tarfin also draws attention with its strong capital structure. The company, which received its first capital investment with BIC Angels angel investment in April 2017, completed its second capital investment process in September 2018 with the participation of local and international funds such as Collective Spark and Wamda.
In September 2020, in the investment tour led by the global investment fund Quona Capital, Raiffeisen Bank’s venture capital fund Elevator Ventures, Syngenta Group’s venture capital fund, one of the world’s leading agricultural input producers, Syngenta Group Ventures and Tarfin Fund’s current investors Collective Spark and received $5 million in capital investment with support from Wamda.
In addition to the investments it has received, Tarfin stands out in the sector with its strong management structure and the support of the relevant authorities. Having been audited annually by KPMG as of 2018, the company received technical support on financial reporting and independent auditing under the “Pre-Investment Preparation Program” of the European Bank for Reconstruction and Development (EBRD) in 2019.
In 2020, it continues to receive technical support assistance offered to companies that support social development under the Employment and Social Innovation Program (EaSI) of the European Commission.
“We offer technology-based solution”
Tarfin Tarım A.Ş. Stating that they believe that the producers have the biggest share in Turkey’s future and that they have continued their activities to support Turkish farmers since their establishment, Tarfin Tarım A.Ş. CFO Kerimcan Aycibin continues his words as follows: “Due to the lack of investment in agriculture in Turkey and the lack of awareness about technology and innovation, the sector cannot experience the expected breakthrough.
In order for the agricultural sector to reveal its potential, first of all, the farmer must have access to finance. Cash flow in agriculture depends entirely on harvesting or cutting. The farmer can only meet the cost of growing the product when he can buy and sell the product after 6-7 months. Banks, credit cooperatives and unions provide business financing, but the biggest burden is on agricultural dealers. Dealers also sell products to farmers on harvest or cut terms.
The farmer either buys these products at high prices or cannot buy them at all. We offer a technology-based solution to this problem. With our mobile application and wide sales point network, we sell fertilizers, seeds and feed to the farmer in accordance with the requested maturity. With our agricultural risk scoring based on machine learning we have developed, we can sell the product that our farmers need in a way that can be approved instantly, with a harvest term.
For example, a farmer can get the input he needs from today with the harvest due date. We reduce the agricultural input costs of the farmers and support agricultural production by offering the product that the farmer wants to buy at a much more competitive price.
We are focusing on increasing this support day by day. We aim to support more farmers and strengthen agriculture in Turkey by investing more in data science and mobile technologies with the VDMK issuances we have realized.”