The Pioneer Facility, an impact fund managed by Nexus for Development, has announced a US$500K loan to iFarmer, marking its first investment in Bangladesh. The three-year working capital loan will enable iFarmer to scale its procurement of agricultural produce from smallholder farmers and purchase essential inputs directly from manufacturers.

Founded in Bangladesh, iFarmer operates at the intersection of agriculture and fintech, providing smallholder farmers with access to quality inputs, financing, advisory services, and market linkages. The company’s model aims to improve farm productivity, enhance incomes, and promote sustainable agricultural practices.

This investment follows Pioneer Facility’s expansion into Bangladesh in 2024 as part of its focus on providing flexible debt financing to climate enterprises that drive social and environmental impact for marginalized communities. To date, the Singapore-registered fund has disbursed over US$3.7Mn across Southeast Asia and Bangladesh.

Laura Alsenas, Executive Director at Nexus for Development, commented, “iFarmer’s model is transforming agricultural supply chains and improving economic opportunities for farmers. Our investment will help scale their impact, contributing to more resilient and sustainable food systems.” Fahad Ifaz, Co-founder and CEO of iFarmer, stated, “This funding will help strengthen our supply chains and enable us to reach more farmers with better financing and input access.”

The deal represents a milestone for impact-focused financing in Bangladesh’s startup ecosystem, positioning iFarmer to further its work in supporting smallholder farmers and advancing climate-positive agriculture solutions.