HeavyFinance, a climate tech company dedicated to advancing sustainable agriculture, has secured €14 million in funding through a partnership with Multitude Bank. The investment, supported by a €10.5 million portfolio guarantee from the European Investment Fund (EIF), will enable HeavyFinance to provide loans to small- and medium-sized farms across the EU, helping them adopt regenerative farming practices.
Known for its innovative approach to financing, HeavyFinance combines debt capital with CO2 monitoring and agronomic support to tackle climate change, already addressing over 900,000 tonnes of CO2 emissions. This funding will accelerate HeavyFinance’s mission to remove one gigaton of CO2 by 2050 while expanding its customer base and geographic footprint. The partnership highlights HeavyFinance’s pivotal role in transforming agriculture and empowering farmers to lead the fight against climate change.
Small and medium-sized farmers in the EU often face challenges accessing financing that could help the transition to more sustainable farming practices. Conventional banks have difficulty with small business loans to farmers, which is where HeavyFinance comes in. The new investment from Multitude Bank will ensure that HeavyFinance is able to continue supporting smaller agricultural businesses while driving forward sustainability goals in the EU.
“We are proud to announce a landmark partnership with HeavyFinance, which underscores our commitment to delivering innovative, solution-oriented financial services. This initiative is a testament to our dedication to addressing climate change and supporting impactful sustainability efforts,” said Alain Nydegger, CEO of Wholesale Banking at Multitude. “We want to illustrate here very clearly that sustainability can be defined through profitable business practices.”
“Farmers are front-line fighters when it comes to accelerating the transition to regenerative agriculture. They understand better than anyone how to enact sustainable farming practices, but they also know the pain points of doing this profitably. This partnership between HeavyFinance and Multitude Bank will help hundreds of small and medium-sized farms advance their sustainability journey,” said Laimonas Noreika, CEO of HeavyFinance.
“We are honoured to partner with HeavyFinance, a purpose-driven climate tech company dedicated to transforming agriculture and achieving their ambitious goal of removing one gigaton of CO2 emissions by 2050. This collaboration not only furthers HeavyFinance’s growth in customer base and geographic reach but also amplifies awareness of ESG priorities,” said Antti Kumpulainen, CEO of Multitude Bank.
Multitude’s Wholesale Banking division continues to deliver robust performance, showcasing significant growth in 2024. Established as an independent unit in January 2024, it has quickly positioned itself as a high-growth enabler in the institutional finance space. The Wholesale Banking portfolio grew significantly year-on-year, rising by 179% from €40.5 million at the end of 2023 to €112.9 million as of Q3 2024.Currently active in seven European countries, the division serves a diverse client base, including Fintechs, SMEs, and payment institutions. It has also expanded its payment solutions, enabling real-time payments in SEK and EUR for institutional clients.
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Read the orginal article: https://arcticstartup.com/heavyfinance-raises-e14m/
