Investment & Fund Management
European Investment Fund Partner
Full Credential Description
Founded in 2017, Tarfin is an agriculture fintech start-up based in Istanbul that has developed a mobile application to address the financial challenges farmers face. The CEO, Mehmet Memecan, identified that small-scale farmers struggled to access financing for essential farm inputs like fertilizer and seeds due to a lack of cash until after harvest and the cumbersome loan processes that banks required, which often involved collateral.
To tackle these issues, Tarfin created a tech-based agricultural distribution model that allows farmers to purchase necessary inputs with extended payment terms. The Tarfin app enables farmers to locate partner stores offering the required products, compare prices, and apply for financing instantly. Farmers can then visit the store, sign a promissory note, and take home the products without needing collateral. This innovative approach not only simplifies the purchasing process but also offers prices that are approximately 8% lower than competitors, allowing farmers to allocate savings towards their families' needs, such as education.
Tarfin has successfully worked with 15,000 farmers across Turkey, completing over 26,000 transactions with a remarkable default rate of less than 2%. The company has built its risk scoring models using advanced machine learning algorithms, leveraging four years of internal repayment performance data alongside both conventional and proprietary alternative data about the farmers and their transactions. This data-driven approach has positioned Tarfin for potential expansion into Eastern Europe, as their model is adaptable to other markets with fragmented agriculture.
In 2018, Tarfin received an equity investment from Collective Spark, which facilitated significant growth, expanding the team from 4 to around 30 employees and enhancing their technological infrastructure. This investment also strengthened their balance sheet, making them more appealing to banks and other creditors.