PwC buys Brazilian agribusiness innovation hub AgTech Garage

PwC has completed the acquisition of AgTech Garage, the largest agribusiness open innovation hub in Brazil.

AgTech Garage connects large companies, startups, producers, investors, academia, and other players in the world of agricultural innovation and entrepreneurship to develop technological solutions that make agribusiness more inclusive, competitive, and sustainable.

The open innovation hub, which was founded in 2017, boasts over a thousand startups linked to hundreds of clients throughout the agribusiness sector. The hub works to support innovation in the Brazilian and global agribusiness market.

“We are very happy with this new phase in which we will combine the capabilities and skills of the AgTech Garage and PwC teams to connect and orchestrate the innovation and entrepreneurship ecosystem, supporting our partners in their transformation journeys in a robust way and thus amplifying our impact for an even more competitive, sustainable and inclusive agribusiness,” said José Tomé, Founder and CEO of AgTech Garage.

The acquisition is one of many made by Big Four consulting firm PwC in recent years. These include, for example, the very recent acquisitions of Sagence, a data management and analytics consulting firm in the US, and Venerate, a Salesforce consulting partner in India.

In the past three years, PwC has closed more than two dozen consulting-focused transactions worldwide, according to Consultancy.org data.

“Technology and innovation are fundamental to support our clients in various opportunities and challenges that arise daily in the industry, the main one being to feed a world in constant change and population growth, in a sustainable way,” said Marco Castro, CEO of PwC in Brazil.

“Topics such as biotechnology, traceability, operational efficiency, data analytics, connectivity in the field, foodtechs, agro fintechs, decarbonization, alternative proteins, energy transition, ESG, among others, are on the agenda of the main decision makers of agribusiness companies,” Castro added.

The largest country by area in South America, Brazil is a regional leader in agribusiness, with some of the most expansive farmlands and the largest cattle herd in the Western Hemisphere, rivaled at an international level only by India. Brazil is also the world’s top producer of sugar cane, the second leading producer of soy, and the third leading producer of bananas.

PwC’s Brazil Chairman and Senior Partner Fernando Alves noted in an investment report that in the last several years, “Brazil has emerged as a stronger and more attractive global player” thanks to “a high degree of economic diversification and a strong domestic consumer market.”

With the support from its new parent company, AgTech Garage will likely leverage PwC’s capabilities and financial muscle to expand into new territory and diversify its offerings. Last year the company found their first international partner in Agrifirm, an agricultural cooperative based in the Netherlands.