Sale Leaseback Enables an AgTech Business to Develop a Mission-Critical Soil-as-a-Service Platform
An agricultural machinery manufacturer with a mission to bolster soil health was able to deploy specialized assets, achieve scale, and grow its platform with CSC.
Challenge
To address food security and climate disruption issues, one agricultural startup, which has developed containerized technology, is on a mission to bolster soil health on a large scale. Manufacturing the equipment, which is placed at growers’ locations, requires substantial upfront cost. Without the ability to scale and deploy these specialized assets, the company couldn’t grow its soil-as-a-service-based revenue platform across a broad acreage rapidly.
Solution
CSC provided the company with a sale leaseback for the specialized proprietary assets. The company manufactures each asset in-house, and CSC reimburses the cost. Then the systems are placed on farms across the country, with farmers paying a monthly subscription fee.
Results
With CSC’s funding, the company has created a mission-critical soil-as-a-service platform and can now:
- Scale deployment of the expensive units so it is ready to onboard new customers
- Preserve ownership with non-dilutive financing
- Increase cash flow with predictable payments