InSoil Finance, a Lithuanian climate fintech company formerly known as HeavyFinance, is making significant strides in transforming agriculture through sustainable financing.
By leveraging financial technologies, InSoil is empowering small and medium-sized farmers across Europe to adopt regenerative farming practices, reduce carbon emissions, and enhance farm profitability.
Key developments, including a strategic partnership with ConnectPay, a successful loan recovery case, and a €1 million investment from Vinted’s co-founder, highlight InSoil’s growing impact in the green finance sector.
InSoil Finance has partnered with ConnectPay, a Lithuanian fintech provider, to streamline payment processes and enhance accessibility for investors in sustainable agriculture.
This collaboration integrates ConnectPay’s robust payment infrastructure with InSoil’s crowdfunding platform, enabling seamless, secure, and efficient transactions for investors funding green agricultural loans.
ConnectPay’s expertise in digital payments ensures that InSoil’s investors—ranging from individuals to institutions—can easily participate in financing projects that support regenerative farming practices, such as no-till farming, cover cropping, and compost application.
These practices not only improve soil health but also sequester carbon, aligning with InSoil’s goal of removing 1 gigaton of CO2 by 2050.
The partnership enhances InSoil’s ability to scale its operations across Europe, where it has deployed over €75 million in loans to farmers.
By simplifying the investment process, ConnectPay’s technology supports InSoil’s mission to make sustainable agriculture accessible and financially viable.
This collaboration underscores the role of fintech in addressing climate challenges, offering a model for how digital payment solutions can drive environmental impact by connecting capital with eco-conscious projects.
InSoil’s commitment to investor confidence is evident in a recent loan recovery case study.
The case highlights InSoil’s effective risk mitigation strategies, particularly in managing defaulted agricultural loans.
When a borrower defaulted on a loan, InSoil leveraged its collateralized loan structure, where loans are secured by tangible assets like farmland or heavy machinery.
In this instance, the collateral—a tractor—was sold to recover the outstanding debt, ensuring no capital loss for investors.
InSoil’s risk management approach includes a rigorous loan-to-value ratio, capping loans at 90% for land, 70% for machinery, and 50% for accessories, as well as expert valuation of collateral before loan issuance.
Some loans are further backed by the Agricultural Credit Guarantee Fund of Lithuania, which covers up to 80% of the principal in case of default.
This case study demonstrates InSoil’s transparency and reliability, reinforcing its appeal to investors seeking secure, high-yield opportunities in sustainable agriculture.
With an average annual return of 12–14%, InSoil balances profitability with environmental impact, making it an option for impact-driven investors.
In an endorsement of InSoil’s vision, Mantas Mikuckas, co-founder of Vinted, had invested €1 million to accelerate the company’s efforts in agricultural decarbonization.
Announced on October 9, 2023, this investment will fuel the expansion of InSoil’s Green Loans program, a debt instrument that allows farmers to adopt regenerative practices without paying interest.
Instead, investors earn returns through the sale of carbon credits generated by sustainable farming methods.
InSoil projects generating 250,000 carbon credits by the end of 2024, positioning it as one of Europe’s largest carbon credit producers.
Mikuckas’s investment reflects confidence in InSoil’s ability to transform agriculture, a sector responsible for 22% of global greenhouse gas emissions.
“I admire how companies like InSoil are championing sustainability in other sectors,” Mikuckas noted, drawing parallels with Vinted’s decarbonization efforts in fashion.
The funds will support InSoil’s Carbon Farming Program, targeting 1 million hectares by 2026, and a €50 million private credit fund, with €20 million committed by the European Investment Fund.
InSoil Finance’s recent advancements illustrate the transformative potential of fintech in agriculture.
By combining ConnectPay’s payment solutions, robust loan recovery mechanisms, and high-profile investments, InSoil is redefining how finance can drive sustainability.
As the company expands its reach and impact, it offers a blueprint for aligning economic growth with environmental stewardship, fostering a greener, more resilient future for agriculture.