Mitsubishi Leads R$ 68 Million Investment in Gênica

Brazilian bioinputs startup Gênica has successfully raised R$ 68 million in a recent Series C funding round, with Mitsubishi Group leading the investment. The round also saw participation from existing investor SP Ventures and impact investor Vox Capital.

Founded nine years ago in Piracicaba, Gênica specializes in biotechnological solutions for the agricultural sector, focusing primarily on biopesticides, inoculants, and biostimulants. The company, established by molecular biology researcher Carlos Labate and agribusiness entrepreneur Fernando Reis, has positioned itself among Brazil’s top five firms in the biologicals sector, alongside international players like Kopperti and local firms Simbiose, Biotrop, and Vittia.

The funding comes at a pivotal time for Gênica, which reported revenues of R$ 130 million last year and anticipates a significant growth to R$ 230 million this year. Operating with a positive EBITDA since 2019, the company attributes its rapid expansion to robust demand in Brazil’s soybean and corn markets, where biological inputs are increasingly favored for their environmental sustainability and efficacy in pest and disease management.

CEO Marcos Petean highlighted the critical role of capital in sustaining Gênica’s growth trajectory, noting the agricultural industry’s cyclical cash flow dynamics that necessitate substantial upfront investments. The company has historically financed its operations through a combination of bank debt and equity funding, having raised R$ 100 million in debt and R$ 50 million across previous equity rounds.

Looking forward, Gênica aims to capitalize on Brazil’s expanding bioinputs market, which currently accounts for US$ 1 billion annually, growing at a robust 30-40% rate. Petean emphasized the sector’s potential to capture up to 50% of the chemical inputs market in the medium to long term, driven by regulatory shifts favoring sustainable agricultural practices.