Brazilian foodtech Raizs, founded by Tomás Abrahão in 2016, has raised BRL 20 million in a Series A funding round. The round was led by Solum Capital. KPTL and Marcelo Bazzali, former director of GPA and CEO of Extrafarma, also invested.

Raizs applies technology to the organic products supply chain, eliminating supermarkets, rural distributors, and urban distributors. By connecting more than 920 rural producers with over 52,000 end consumers, whether restaurants or homes, Raizs is able to sell at prices which on average are 20% below the supermarkets and return to rural producers on average 22% more.

More than half of the producers are within the State of São Paulo, but there are also partners spread across the Amazon, Northeast, and the South of the country. Raizs currently operates within the State of São Paulo but, with the Series A funding, plans to expand geographically, starting with the State of Rio de Janeiro. Raizs also intends to expand beyond fruits and vegetables to dairy, grain, and dry goods.

Felsberg Advogados advised Raizs in structuring its business and on its Series A funding round. Evy Marques, who leads the Felsberg team and specializes in startups and venture capital, said, “The concept of Raizs benefits both producers and consumers and we are extremely happy to be part of a venture that works for the improvement of lives through the application of technology.”