Digital Agriculture in LMICs -13 Mar #50
India’s rural e-commerce Rozana bags $22.5M; Central Bank of Kenya issues digital credit licences; Greentech accelerator calls for agritechs, foodtechs, climatetechs
04/3/24
Greentech Africa and Asia accelerator call for startups
Agritech and foodtech startups are invited to apply for the Greentech Africa and Asia 2024 accelerators. The programmes are designed to advance innovative and sustainable solutions that contribute towards building resilience and mitigating the effects of climate change. They are supported by Moody’s Foundation, the foundation arm of global risk assessment firm Moody’s and Village Capital, a not for profit that supports early stage companies. The Africa programme will prioritise diverse-led startups and/or startups from Egypt, Kenya, Nigeria, Senegal, and South Africa, that promote sustainable solutions for underestimated communities. The Asia programme will focus on startups from Malaysia and Vietnam. Besides agritechs and foodtechs, the accelerators target climatetechs and clean techs, as well as startups working on the circular and regenerative economy, on natural resource management and on water, sanitation health. Companies must have at least a minimum viable product (MVP), some traction under their belt, and must have raised less than USD one million in equity. There is time to apply until 10 May.
06/03/24
The benefits of embedding insurance with loans: Study from Turaco, One Acre Fund
Insurtech Turaco has launched a new report, produced in partnership with One Acre Fund, a social enterprise supporting smallholder farmers in Africa, and impact measurement company 60 Decibels. The study analyses loan repayment data from approximately 110,000 One Acre Fund smallholders in Kenya, to assess the benefits of embedding insurance into loans. One of the key findings is that One Acre Fund farmers with insurance had up to 60% lower default rate when compared to uninsured farmers. Working with Turaco, One Acre Fund embedded insurance into its loans, giving farmers the option to access health and funeral cover with insurance premiums bundled with loan repayments. According to the report, 66% of insured farmers said their frequency of health visits had increased. The survey data found that 47% of farmers would have to sell assets to pay for hospitalisation costs if they did not have insurance.
Founded in 2019, Turaco is an insurance distributor, broker and customer interface between the underwriter and the end customer. It operates under a B2B and B2B2C model via partnerships with a variety of tech-enabled African companies, such as One Acre Fund and asset financing M-KOPA. In September 2022, Turaco raised USD 10 million Series A equity funding, having raised to date a total of USD 13.2 million. Established in 2006, One Acre Fund provides agricultural services to 1.5+ million smallholder farmers across nine countries in Eastern and Southern Africa.
Photo credit: Kenya News Agency
06/03/24
Central Bank of Kenya issues digital credit licences in effort to regulate fintechs
The Central Bank of Kenya (CBK) has granted licenses to 19 new digital credit providers (DCPs) in an effort to regulate the fintech sector. This brings the number of licensed DCPs to 51 following the licensing of 32 DCPs announced a year ago, in March 2023. The announcement comes as Kenya has faced in recent years issues related to the high cost of unregulated DCPs, unethical debt collection practices, and the abuse of personal information. Among the 51 licensees, are companies such as Marble Capital, a provider of financial services for underserved and unbanked businesses, and asset financing company M-KOPA. Other DFS providers operating in Kenya, including agri-fintech companies, are either in the process of submitting documentation to obtain a licence or awaiting a decision. The CBK said that since March 2022 it has received 480 applications.
07/03/24
Indian rural e-commerce Rozana bags $22.5M to boost expansion
Indian rural e-commerce startup Rozana has raised USD 22.5 million from VC fund Bertelsmann India Investments with participation from Fireside Ventures as well as existing investors. The startup plans to use the funding to enhance its workforce in technology, product, and operations, extend warehousing and logistics operations into new districts, and develop its technology platform. Founded in 2021, Rozana is a P2P e-commerce platform, which enables micro entrepreneurs to connect with customers in rural areas providing them with sales and logistics support in the last mile. Rozana operates in 12,000 villages across 13 districts in Uttar Pradesh and Haryana. It has a network of 18,000 last-mile partners residing in its operational areas (90% women). Bertelsmann focuses on early growth stage investments (Series A to D) in tech driven startups, and has in its portfolio Indian agritech company AgroStar. BII is one of the commercial entities behind the Partech Africa II, which recently completed fundraising at USD 300 million of its second Africa-focused fund. Only in April 2022, Rozana raised USD 2.5 million in its pre-Series A round.
10/03/24
Bangladeshi e-commerce Agroshift gets new funding from ADB Ventures
Bangladeshi start-up Agroshift, a B2B market linkage platform, has raised a follow up undisclosed investment from ADB Ventures, the Asian Development Bank’s (ADB) facility to scale technology solutions for impact in Asia and the Pacific. In October 2022, Agroshift raised USD 1.8 million in a pre-seed round led by Shorooq Partners and Anchorless Bangladesh. The investment was the largest for this stage of funding in Bangladesh. Founded in early 2022, Agroshift helps farmers to sell directly to informal businesses such as mom-and-pop stores and to factory workers in the readymade garment sectors in Tier 2 and 3 cities. Orders are placed via collection centres dubbed digital order points. According to Agroshift, farmers obtain 5-10% higher prices through its collection centres. According to a press release by ADB Ventures, in its first operational year (2023), Agroshift reached 170,000 unique users. With the new funding, it aims to expand to 200,000 regular users in 2024.
12/03/24
Indian agritech Satyukt forms partnership for precision agriculture in Uttar Pradesh
Indian agritech start-up Satyukt Analytics has partnered with The Associated Chambers of Commerce & Industry of India (ASSOCHAM) and Global New Energies and Technologies (GNET), an importer of agricultural machinery that works with Farmers Producers Organizations (FPOs) and directly with farmers. The two organisations will use Satyukt’s Sat2farm app to provide farmers in their network in the state of Uttar Pradesh with data-driven insights, and implement precision farming. Sat2farm utilises satellite-driven technology, providing insights for enhancing resource distribution and efficiently controlling pests and diseases. In June 2023, Satyukt Analytics secured USD 1.2 million in a pre-series A funding round from Nabventures. Founded in 2018, the start-up leverages satellite data and machine learning for its Software-as-a-services (SaaS) solutions, including digital advisory and agri digital financial services (Agri DFS).