- Shamba Pride, a Kenyan agritech startup, has raised $3.7 million in debt-equity pre-series A to strengthen its Kenyan operations and expand its merchant network.
- The European Union agriculture financing initiative, EDFI AgriFI, and Seedstars Africa Ventures (SAV) participated in the round. The funding includes $1.7 million in equity.
- This news comes over two years after the company raised $1.1 million from Seedstars Africa Ventures and Gray Matters Capital to support its nationwide expansion and roll out its solution to over 1000 shops.
Samuel Munguti (CEO) founded Shamba Pride in 2016, which functions as an ecosystem for agricultural trade.
The platform offers an online-to-offline platform that gives agricultural input distributors, or “agro-dealers,” tools and technology to improve their capacity to provide farmers with high-quality agricultural products, services, and information.
Mumguti stated that agro-dealers significantly impact agricultural distribution in rural areas, influencing how farmers access input, services, and training.
He mentioned that this new funding will enable agro-dealers by providing them with the technology and tools necessary to increase the visibility of their businesses, support local farmers, and further their professional and commercial development.
Furthermore, Shamba Pride focuses on small-scale farmers in Kenya’s agricultural sector, which contributes 33% of the country’s GDP. This sector employs over 40% of the country’s population, with more than 70% living in rural areas.
Reportedly, the agritech sector accounts for 65% of the nation’s export revenue, highlighting its importance as a hotbed of innovation and a major engine of the national economy.
The agritech firm provides farmer market links, Buy Now, Pay Later (BNPL) financial services, and training information through its USSD platform.
Currently operating in 24 counties throughout Kenya, the agritech has enrolled over 60,000 farmers and engaged 2,700 agri-retailers, covering more than half of the nation. The startup intends to extend its reach in Kenya in the upcoming year to include more retailers and agricultural areas.
Consequently, the company plans to explore neighbouring markets like Tanzania, Uganda, and Zambia to tackle comparable challenges in the farm input supply chain, such as sourcing, erratic pricing, quality issues, and stockouts.