March 30, 2020

By Lynda Kiernan

DiMuto, a Singapore-based traceability solutions platform, announced it has raised an undisclosed round of capital from Latin Leap Venture Capital Studio, along with First Alverstone Capital, SGInnovate, and PwC Singapore.

As a newly launched Venture Capital Studio, Singapore-based Latin Leap is focused on opening up opportunities in Latin America for tech startups in Southeast Asia, with the goal of internationalizing the region’s tech sector.

Founded by Gary Loh, the company’s executive chairman, who is also the executive chairman of First Alverstone Group, DiMuto uses blockchain, IoT, and AI to provide end-to-end supply chain visibility for global agri-food businesses. Through the digitization of the supply chain, the company aims to foster trust between supply stakeholders, and to solve supply chain challenges such as food waste, lack of food safety, and food sustainability.

Currently, DiMuto is focused on the fresh fruit sector – a sector valued at $115 billion in 2017, that is currently dealing with supply chain disruptions that come with unforeseen global situations like COVID-19.

“We are excited to have Latin Leap join us as an investor and partner to grow our presence in Latin America. With data captured using our solutions, stakeholders in the agri-food supply chain are now able to see the quality of fresh produce that is being shipped, creating trust and visibility in the uncertainty brought on by COVID-19,” said Gary Loh, founder and CEO, DiMuto.

Using its proprietary Digital Asset Creation devices (DACky), DiMuto tags each fruit and carton as it moves through the supply chain with QR labels and captures images of every carton from farms, to factories, cold chain distribution channels, and end consumers.

Enterprise Singapore has been helpful in supporting DiMuto’s reach into Latin America by providing market insights, and identifying suitable in-market partners, such as Latin Leap. It has also assisted in the filing of patents, with proof of concept, and with business development and branding initiatives.

“A diversified supply chain is part of business continuity planning for companies in today’s operating environment,” said Kathy Lai, deputy CEO, Enterprise Singapore. “Secure digital solutions will be key to address shifts and disruptions in global supply chains, particularly in food security. Good traceability systems assure safety and quality in global food supply chains. We look forward to assisting more Singapore start-ups like DiMuto in Latin America to support the region’s food sustainability efforts.”

With its technology, DiMuto has tagged more than 30 million fruit to-date, and has tracked and traced agrifood trades worth north of US$100 million.

A recent partnership deal announced in early March brought DiMuto together with Western Australia-based Morning Glory Farms through which DiMuto will digitize Morning Glory’s spaghetti squash and plums.

In addition, DiMuto will use its Sales and Marketing Retention and Awareness Tool (SMART) to conduct marketing campaigns. Consumers can scan a QR code to discover where, and how the fruit was grown, find recipes, and leave valuable feedback that can give producers insight from the consumer perspective. 

“As a grower, it is difficult to reach out to consumers directly and tell our story,” said Devan Eatts, owner, Morning Glory Farms. “With DiMuto’s marketing solution, we are now able to let people know where and how their squash is grown, as well as getting feedback from them — a platform that truly closes the loop from farm to fork.”

Another is Queen Frozen Fruit, Thailand’s largest fresh and frozen durian fruit exporter, with 14 pack houses and four factories across the country. As a high-value fruit, each piece, and every carton are tagged with QR labels, giving each fruit a digital identity. Using DiMuto’s 4T Track & Trace platform, Queen uses a mobile app that allows them to scan each durian to the DiMuto Trade Platform, where it can assign each scanned fruit and carton to a specific trade order, complete with the applicable trade and shipping documentation, health certificates, and other needed data.

This ability enabled Queen to connect with DiMuto’s trade financing partner, Havenport Investments, securing $2 million to fund their export business to China.

Already present in seven countries including the U.S, Australia, China, Indonesia, and Mexico, the funding secured from Latin Leap, First Alverstone Capital, SGInnovate, and PwC Singapore will support DiMuto as it capitalizes upon its growth momentum to expand into Latin America in the coming months.

“With the strong outlook for the agricultural sector in Latin America, I believe that the industry would benefit from digitalization and traceability offered by DiMuto,” said Stefan Krautwald, General Partner of Latin Leap, adding that it would “bring peace of mind to consumers around the world. DiMuto fits perfectly into our investment thesis of soft-landing tech-enabled businesses with a positive impact on society in Latin America. We are proud to accompany its growth path in the region.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.