Editor’s Note: Beatriz Ponce de León is partner and CFO at GLOCAL, the Latin American agrifoodtech accelerator and investor, with a background in technology, investment and banking. Florencia Solari is the firm’s dealflow and GLOCAL Game Changers leader.

The views expressed in this article are the author’s own and do not necessarily represent those of AgFunderNews.

Latin America’s Agrifoodtech Revolution: Unveiling Opportunities Amidst Global Challenges

Global agrifoodtech investment dropped to $5.1 billion in the first half of 2025, a 37% year-over-year decline, reflecting the lowest figures since 2017. However, this contraction is signaling new opportunities, particularly in upstream innovation, which now accounts for over half of the total funding. This shift is largely driven by pressing megatrends including climate adaptation, food security, and efficiency improvements.

In Latin America, a transformative shift is underway. Long-standing structural challenges such as limited access to finance, climate variability, labor shortages, and soil degradation are intersecting with global innovation trends and an increasing appetite from investors.

In just the first half of 2025, Latin America has attracted nearly $200 million in disclosed agrifoodtech deals, predominantly led by advancements in agrifintech, biological inputs, and AI-powered platforms. The emerging narrative indicates that Latin America is not merely catching up; it is beginning to take the lead.

Agrifintech: From Underserved to Digitally Empowered

Fewer than 5% of rural households in Latin America currently access formal credit. Agrifintech startups are stepping up with digital-first solutions designed for agricultural realities. For instance, Verqor in Mexico is expanding its embedded finance model, offering crop-linked repayment and weather insurance while leveraging AI for loan approvals within 72 hours.

Another notable player, Blooms, is addressing a $3.2 billion financing gap for exporters by providing working capital and foreign exchange hedging, allowing scalable off-balance sheet financing.

In Brazil, partnerships like Agroforte with RúmiCash and Agrolend’s collaboration with UPL (BRL 100 million, or $18.4 million) are integrating financial tools directly into supply chains to mitigate credit risk and facilitate growth.

Insurtech: Closing the Climate Protection Gap

With extreme weather events becoming more frequent, agricultural insurtech is gaining importance. In developing countries, less than 3% of GDP is covered by climate insurance, prompting startups like Trag, Natu, and Suyana to innovate rapidly. Their weather-indexed, parametric models automate claim settlements and lower base risk, with Suyana’s hybrid model catering specifically to smallholders in vulnerable regions.

Together, these fintech and insurtech solutions are rebalancing the risk-reward equation in agriculture, enhancing capital accessibility, providing inclusive protection, and facilitating data-driven decisions.

Agbiotech and Biologicals: Science Meets Soil

Biological innovation represents one of the most dynamic sectors in Latin America. Agbiotech and bioinput startups are increasingly attracting venture and corporate interest. A standout example is Puna Bio, which utilizes extremophile microorganisms from the Andes to restore soils and enhance yields by up to 15%. Following a successful Series A round led by Corteva Catalyst and supported by other investors, Puna now spans 20,000 acres of soybean farms across the region.

Corteva has become a major player, backing nine agbiotech startups, including Brazil-based Symbiomics, which utilizes AI to expedite the development of biological inputs.

Local cooperatives, such as Argentina’s AFA, are also advancing solutions—its new $6 million bioinput plant services over 1.5 million hectares, and Aapresid’s Regenerative Systems Certification is pioneering traceable, outcome-based farm validation.

AI and Automation: The New Agronomic Intelligence

AI adoption is accelerating across the agricultural landscape. Kilimo in Argentina uses machine learning to optimize irrigation, minimizing water waste while providing “volumetric water benefits.” In Brazil, the company is collaborating with local farmers and global clients like Microsoft, Unilever, and Coca-Cola to achieve water neutrality. Solinftec, having raised $60 million in its Series D, is implementing autonomous Solix robots that reduce herbicide usage by 85% while increasing yields through precise weed control.

With over 480 million hectares applying pesticides annually in Brazil, Precision Ag employs AI and spectral imaging for zone-specific spraying with drones, reducing chemical waste and environmental impact. Nunatak is developing AI-driven research and development for microbial solutions, including YAMANA, a biofertilizer that improves crop resilience even under saline conditions. These innovations illustrate how AI can transform input development and farming sustainability.

Platformization: All-in-One SaaS for a Fragmented Sector

Amid a plethora of point solutions, interoperability has become a significant bottleneck. Startups like Auravant and Sensix are building integrated SaaS ecosystems to centralize data across devices, suppliers, and operations. Recent collaborations, like that between Bem Agro and Syngenta Digital, highlight this trend, as Bem Agro’s AI-driven agronomic mapping is being incorporated into Syngenta’s Cropwise ecosystem to drive efficiency through unified data, predictive analytics, and decision support across the farming cycle.

These platforms serve as the operational backbone for the agrifood chain, easing decision-making and enhancing adoption among farmers, advisors, and corporate partners. This “platformization” is a crucial evolution in precision agriculture, shifting the focus from isolated tools to integrated, user-friendly systems that promote scalability.

Looking Ahead: 2025 and Beyond

The first half of 2025 demonstrates that Latin America is embracing upstream innovation, addressing acute challenges not just in line with global trends but also to meet its own needs. At GLOCAL, these changes reaffirm the archetypes outlined in our Clean AgriFoodTech Playbook, which undergird our investment strategy:

• The Embedded Financier is revolutionizing agricultural credit accessibility.
• The Biological Disruptor is focused on soil regeneration and sustainability.
• The AI-First Optimizer is leveraging farm-level data to improve system-wide efficiency.

From fintech and biotech to automation and system integration, Latin America’s agrifoodtech and climate tech ecosystems are not merely adapting to global shifts; they are actively shaping the future of sustainable food and agriculture.