Vinted co-founder invests €1m in green loans via HeavyFinance
The co-founder of pre-worn clothes marketplace Vinted, Mantas Mikuckas (pictured), is funding €1m (£864,000)-worth of ‘green loans’ to farmers via HeavyFinance.
Debt capital will be deployed to small- and medium-sized farms through the peer-to-peer lending platform, to support the green transformation of agriculture.
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Lithuania-based HeavyFinance launched its green loans earlier this year, enabling farmers to earn carbon credits based on their emissions, which can be sold to traders or other companies.
Investors earn returns from the loan itself and the sale price of the carbon credit.
The agricultural industry accounts for 22 per cent of total CO2 emissions, so HeavyFinance is aiming to encourage a shift to regenerative farming practices.
“We’re thrilled about this investment because both HeavyFinance and Mantas share a similar mantra, focusing on creating a win-win scenario for our customers and the planet,” said Laimonas Noreika, chief executive and co-founder of HeavyFinance.
“As we aim to meet the Paris Agreement targets and boost the UN SDGs initiative, it’s vital for businesses to support one another and set a global example.”
Mikuckas added: “Knowing how much effort and perseverance is needed to minimise carbon emissions in fashion, I admire how companies like HeavyFinance are championing sustainability ideas in other sectors. The urgent need for decarbonisation possesses a huge opportunity for local communities, businesses and investors.”
HeavyFinance closed a €3m fundraising round in March to help expand its green loan offering.
Darius Verseckas, co-founder and chief marketing officer of HeavyFinance, revealed to Alternative Credit Investor that the platform is targeting more than €5m of green loans by the end of 2023.
The platform has provided finance for more than 1,300 agricultural ventures in Bulgaria, Latvia, Lithuania, Poland and Portugal.