What we do
The EIF in 2020
Coronavirus: The EIB Group’s initiatives to address its economic consequences
Pan-European Guarantee Fund – EGF
Institutional investors
Equity products
AI Co-Investment Facility
Climate & Infrastructure Funds
Technology Transfer
European Angels Fund (EAF) - Co-investments with Business Angels
Venture capital
The Social Impact Accelerator (SIA)
Lower mid-market
Mezzanine Facility for Growth
VentureEU
EFSI Equity instrument
Single EU Equity Financial Instrument
COSME - Equity Facility for Growth
InnovFin Equity
Private equity secondary market transactions
EIF-NPI Equity Platform
ESCALAR Programme
Debt products
New ESIF ERDF Guarantee Fund initiative in Greece
EFSI Private Credit Programme
AGRI Guarantee Facility
AGRI Italy Platform Uncapped Guarantee Instrument
Credit enhancement
Cultural and Creative Sectors Guarantee Facility (CCS GF)
ENSI - Securitisation Initiative
Erasmus+ Master Loan Guarantee Facility
Skills & Education Guarantee Pilot
EREM debt products
Single EU Debt Financial Instrument
Documentary Finance Facility – Bulgaria
The SME Initiative
The SME Initiative Bulgaria
The SME Initiative Finland
The SME Initiative Italy
The SME Initiative Malta
The SME Initiative Romania
The SME Initiative Spain
Inclusive finance
EaSI Financial Instruments
EaSI Capacity Building Investments Window
EaSI Guarantee Instrument
EaSI Funded Instrument
European Progress Microfinance Facility
Entrepreneurs supported through Progress Microfinance
European Fund for Strategic Investments (EFSI)
How does EIF contribute to EFSI
How to apply for EFSI financing
Regional Development - Country and sector-specific initiatives
Fons d’Inversió en Tecnologia Avançada (FITA) Catalonia
Dutch Future Fund (DFF)
Dutch Alternative Credit Instrument (DACI)
PORTUGAL BLUE: a new initiative for blue economy investments
JEREMIE Greece Reflows – Business Angels’ Co-Investment Equity Instrument
German Corona Matching Facility (CMF)
Portugal Growth programme
Croatian Growth Investment Programme (CROGIP)
AGRI Italy Platform Uncapped Guarantee Instrument
DISPOSITIF INSTRUMENTS FINANCIERS BOURGOGNE FRANCHE-COMTÉ
ALTER’NA – ESIF EARFD Nouvelle-Aquitaine
Baltic Innovation Fund 1 (BIF 1)
Baltic Innovation Fund 2 (BIF 2)
Central Europe Fund of Funds (CEFoF)
Croatian Venture Capital Initiative (CVCi FoF)
Competitiveness Fund-of-Funds for SMEs in Romania
The Cyprus Entrepreneurship Fund (CYPEF)
Deep and Comprehensive Free Trade Area Initiative East Guarantee Facility (DCFTA)
Dutch Growth Co-Investment Programme
Dutch Venture Initiative (DVI-II)
ESIF Fund-of-Funds Greece
EAFRD FoF Portugal
EAFRD FoF Romania
The ERP-EIF Facility
ERP-EIF Co-Investment Growth Facility
The LfA-EIF Facilities
The German Future Fund (GFF) - EIF Growth Facility
INAF – French National Agricultural Initiative
ESIF Energy Efficiency and Renewable Energy Malta
Regional Fund-of-Funds Romania
ESIF Fund-of-Funds Czech Republic
The Silesia EIF Fund of Funds
La Financière Région Réunion
The EIB Group Risk Enhancement Mandate (EREM)
EstFund
FOSTER TPE-PME Occitanie
Greater Anatolia Guarantee Facility (GAGF)
G43 - Anatolian Venture Capital Fund Project
InvestBG Equity Instrument
JEREMIE
Romania Recovery Equity Fund of Funds
JEREMIE Romania Reflows – Equity Instrument
Luxembourg Future Fund (LFF)
Mezzanine 'Fund of Fund' for Germany (MDD)
Polish Growth Fund of Funds (PGFF)
Portugal Venture Capital Initiative (PVCi)
Scottish-European Growth Co-Investment Programme
Slovene Equity Growth Investment Programme (SEGIP)
Swedish Venture Initiative (SVI)
Turkish Growth and Innovation Fund (TGIF)
Western Balkans Enterprise Development & Innovation Facility (WB EDIF)
EAFRD FoF Greece
Irish Innovation Seed Fund (IISF)

Tarfin: Buy now, pay at harvest

image

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. “It’s an innovative business model for the Turkish market, providing farmers with farm inputs and instant working capital financing,” says Mehmet Memecan, CEO.

Mehmet worked in the fertilizer business for several years before returning to Turkey. “When I came back, I saw how small-scale farmers faced difficulties in accessing financing to buy things like fertilizer or seeds. They don’t have cash until after harvest... Banks ask for collateral and the process of getting a loan is quite cumbersome. To make ends meet they resort to buying with vendor financing terms and the cost is high.” This is where Tarfin comes in. “We are a tech-based agricultural distributor,” explains Mehmet. “We sell the farm inputs farmers need with extended payment terms.” The Tarfin app helps farmers find the closest partner stores that offer the necessary inputs (e.g. fertilizer, seeds etc.), compare prices and instantly apply for financing. Then they can head to the store, sign a promissory note and walk away with the products.

“We built the underlying risk scoring models on advanced machine learning algorithms with four years of internal repayment performance data. In our scoring models, we utilize both conventional data as well as proprietary alternative data about the farmer and the transaction. We use our (over 300) retailer network across the country and our mobile app to help farmers conveniently access farm inputs with extended payment terms. No collateral, instant approval. And we’re about 8% cheaper than next door. Those savings can go to the farmer’s kids’ education, support overall household spending” Mehmet says.

Working with 15,000 farmers across Turkey, Tarfin has so far completed over 26,000 transactions. It boasts less than 2% default rates and is looking to expand to Eastern Europe in 2021. “Our solution is workable in other markets where there is fragmented agriculture and technology allows us to get to small ticket sizes that a bank wouldn’t bother looking at.”  In 2018, Tarfin received an equity investment from Collective Spark, which helped the company grow. “We went from a small team of 4 to around 30 people. It helped build the tech infrastructure we have today and strengthened our balance sheet to make us also more attractive to banks and other creditors,” Mehmet explains.

Company: Tarfin (Istanbul, Turkey)

Type of business: agriculture, ICT

Financial intermediary: Collective Spark

EIF financing: Turkish Growth and Innovation Fund (TGIF)

For further information about EIF intermediaries in Turkey, please refer to:
http://www.eif.org/what_we_do/where/tr

 

We use cookies to give the best browser experience on our website. or change cookie settings.

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.

 
 

Copyright ©

 European Investment Fund   – The European Investment Fund is not responsible for the content of external internet sites.