Dynamic risk management platform Maalexi raised $3 M Debt funding from Citi
Maalexi, a dynamic risk management platform with its headquarters in the United States that assists small and medium-sized agribusinesses in reducing operational risks, has announced that it has obtained a $3 million debt financing facility from Citi, one of the biggest banks in the world.
Through the simplification of cross-border agri-trade carried out on its state-of-the-art, AI-powered risk management platform, the strategic facility helps Maalexi fulfill its mission to improve global food security. Concerns about food security are at an all-time high as the global agriculture sector struggles with extreme temperatures following confirmation that 2024 will be the hottest year on record. In order to meet 85% of their food consumption needs, the Gulf Cooperation Council (GCC) countries spend $68 billion a year on food imports.
With yearly sales of over $180 billion, the United States leads the world in food and agricultural exports, yet it only provides 6% of the food imported by the GCC. The main cause of this low market penetration is that American SMEs find it difficult to build trustworthy trade relationships and control risks when exporting to GCC markets. Giving these SMEs the tools they need to overcome these obstacles could increase opportunities for American agricultural exporters while addressing the GCC’s food security issues.
By improving its liquidity and, consequently, its procurement capabilities, the credit facility fortifies Maalexi’s position in the market. As Maalexi increases its direct sourcing from agricultural origin markets, with an emphasis on U.S.-based exporters, this permits more flexible resource allocation and lowers capital costs.
Maalexi consistently uses its equity capital to fund technological advancements, improving its platform and obtaining useful information from direct sourcing activities. In the food supply chain, this aids Maalexi in lowering risks and increasing efficiency.
In the end, Maalexi’s initiatives are stabilizing market prices, boosting direct SME participation in cross-border trade, and cutting waste in the $2 trillion global food trade2, where 15% of the value of food produce is normally lost during the transit from farm to retail3. Maalexi’s cutting-edge systems contribute to a decrease in food waste across the supply chain. By 2030, cutting food waste in half could have two significant effects, according to an OECD-FAO report4: it could feed 154 million undernourished people and reduce global agricultural GHG emissions by 4%.
Dr. Azam Pasha, CEO & Co-Founder of Maalexi, said:
“This credit facility is a significant milestone for Maalexi. It strengthens our ability to construct seamless food supply chains, helping us procure directly from exporters or producers at origin and assure sustainable food supplies at transparent prices and costs to our local SME buyers in the UAE. This will also support us to acquire and further build our proprietary datasets and upgrade our AI-powered data processing abilities to identify, develop and patent new technologies.”
“In doing so, Maalexi is helping to make real progress in the region’s food security efforts. With a significant reliance on imports, it’s critical that SME agri-trade market participants have access to affordable food and agricultural products.”
Since its pre-Series A fund raise in January 2024, Maalexi has made swift operational and financial strides, as reported in today’s news. As of December 2024, the company’s revenues had increased by approximately 50% year over year, and its transaction volumes had increased by approximately 20%. Additionally, it has improved gross margins.
In 2024, Maalexi also had two important strategic agreements. The first is a contract with one of the biggest port operators and logistics companies in the world, which enables Maalexi to use top-notch warehouses in the United Arab Emirates, guaranteeing the safety and administration of its agricultural product inventory.
Additionally, this credit facility will help Maalexi’s plans to grow its sourcing business, establishing a smooth, technologically enabled supply chain from origin markets to the United Arab Emirates with improved technologically enabled risk management and optimization.
In order to better assess buyers and sellers in both domestic and foreign markets and help manage payment and performance risks, Maalexi also partnered with a top global trade credit insurance and market intelligence provider in the second agreement. This partnership allowed for the exchange of business intelligence data.
The introduction of Maalexi’s tech-monitored warehousing and digital listing solutions in 2024 further broadened the company’s product line and provided its SME clientele with additional tools to participate in international agribusiness. Maalexi’s leadership team underwent strategic additions, including the addition of top talent in risk management, warehouse operations, and AI and data science.
Maalexi leads agricultural trade transformation via three powerful differentiators:
- Its risk management system
- Comprehensive data architecture
- Proprietary AI engines.
With the help of a thorough data architecture that captures and analyzes crucial trade parameters, such as quality metrics and compliance, the company’s sophisticated risk management system employs real-time monitoring and predictive analytics to protect all transactions. Maalexi’s proprietary AI engines bring everything together, facilitating more effective and transparent cross-border trade for SMEs.
