Promip raises BRL20 million from Angra Partners fund to scale biological inputs

Angra Partners' growth equity fund has just completed a BRL20 million investment in Promip, a Brazilian biological inputs company. 

The investment fund, which Angra Partners manages, belongs to Finep, a Brazilian federal government agency focused on financing innovation projects.

Promip's flagship product is the bioinsecticide Baculomip, produced from nucleopolyhedrovirus (SfMNPV) and supplied by Embrapa Milho e Sorgo (Brazilian Agricultural Research Corporation). 

The company revealed plans to use the new funds for research and development (R&D) of new solutions to "offer the market new products supported by the most advanced global technologies in biological inputs."

Additionally, Promip explained that the resources will be used to increase its production capacity and efficiency. The Brazilian company also plans to expand its products' geographical reach to new regions in Brazil and other Latin American countries.

Founded in 2006 by agronomist Marcelo Poletti, Promip was one of Brazil's first agtechs in the biological inputs sector. Previously, the agtech received investments from Fapesp (São Paulo Research Foundation), raising 4 million reais.

Besides Fapesp, Promip's partners include the development agency Desenvolve SP, linked to the Brazilian state of São Paulo government. Shareholders also include Sebrae (Brazilian Support Service for Micro and Small Enterprises) and Jive Investments.

Promip inaugurated a new factory in 2024 that quintupled its production from 30 tons to 150 tons annually. The company has lines of eight macrobiological products and seven microbiological technologies. The decision to build the new factory came after Promip's business focus narrowed in 2022. The company had a services arm, which it decided to sell to the French group Staphyt.

With money in hand, the priority was to invest in biological inputs production through the new facility. The company's announced goals include expanding its product portfolio to 20 items by this year and achieving revenue between BRL300 million and BRL500 million by 2028.

Angra Partners

Murillo Vianna, director at Angra Partners, explained, "We are known for our active involvement in our investments, supporting companies with financial, strategic, market, and business intelligence while implementing positive governance that allows companies to achieve healthy growth. It won't be different for Promip. Beyond the points mentioned, given the company's innovative nature, we are implementing an innovation committee aimed at maintaining momentum and seeking opportunities, both in gaining efficiency in the current structure and in developing new products".

Among the selection criteria for this company, they highlight "innovation as a competitive advantage." The agricultural pesticide market faces constant adaptation challenges, and pest evolution, the need for greater farmer productivity, and the pursuit of more sustainable farming practices drive innovation demand.

Promip stated that it positions itself at the "forefront of this movement, developing solutions complementary to traditional chemicals, supported by new technologies that truly impact rural producers and differentiate themselves from products already offered in the market, bringing competitive advantage and contributing to the adoption of biodefensives."

Meanwhile, Angra Partners announced that 2025 promises to be a year of "high activity," as this growth fund is still in its investment period with BRL180 million available for allocation. With an agnostic investment thesis regarding sectors, Angra seeks to make primary investments between BRL10 million and BRL40 million in exchange for significant minority stakes in companies with annual revenue above BRL15 million that bring innovative and economically attractive solutions to sectors where Brazil faces substantial challenges. Thus, the manager actively looks at agriculture, healthcare, education, industry and commerce optimization, digital transformation, and new technology development.

"We seek companies led by founders who want to transform their sectors. We are quite critical in our analyses, and our experience in private equity investments and distressed asset management helps us contribute to our investees to avoid complex situations experienced by companies undergoing accelerated growth. Besides Promip, we have several companies advancing in our pipeline that we expect to close in the first quarter of 2025," Vianna added.

(Editing by Leonardo Gottems, reporter for AgroPages)