Digital Agriculture in LMICs - 22 Nov #36
Apollo gets $2.2M from ADB for fertiliser access in Kenya, Aavishkaar’s $150M fund targets agritech growth in India, Khula! backed by PepsiCo’s fund in South Africa
14/11/23
Synnefa, Tearfund awarded GSMA grant for anticipatory action
Kenyan agritech Synnefa has been awarded a grant by the GSMA Innovation Fund for Anticipatory Humanitarian Action funded by the UK’s Foreign Commonwealth & Development Office (FCDO). Synnefa will use the grant of up to GBP 250,000 (USD 311,000) to integrate, over a period of 15-18 months, satellite imagery into its farm management platform FarmCloud and provide real-time data on crop health and weather patterns to smallholders in Kenya. Founded in 2021, the agritech has raised to date USD 1.4 million, according to Crunchbase. In addition, the GSMA also awarded a grant to NGO Tearfund. The NGO will use mobile technology to raise awareness of the benefits of insurance among African agropastoralists, providing climate information and parametric cover for extreme climate events. The GSMA received 143 applications, with £25 million+ (USD 31.3 million) of funding requested. 65% of applications came from Africa, with a further 22% coming from South and Southeast Asia.
16/11/23
AyuTe Africa Challenge awards $20K to young Nigerian agritechs
Through its AYuTe Africa Challenge Nigeria, NGO Heifer International awarded cash grants to three young Nigerian agritech start-ups focused on impacting smallholder farmers. The top prize (USD 10,000) went to Extension Africa (EXAF), a research-based agritech platform that provides private extension services to value chain actors. The second prize (USD 6,000) went to Rural Farmers Hub, a startup that has developed a software (CAPTURE) that converts soil and crop data into insights for smallholders. Bridge Merchant Enterprises took the third spot (USD 4,000) to develop its decentralised agricultural system that connects smallholders. The challenge is implemented by Wennovation Hub, a venture development company that supports startups and teams across emerging sectors. AYuTe challenges are held in Ethiopia, Kenya, Senegal, and Uganda, besides Nigeria.
17/11/23
South African agritech Khula! backed by PepsiCo’s Kgodiso Fund
South African agritech Khula! has received an undisclosed equity investment from the Kgodiso Development Fund, which is supported by multinational food and beverage group PepsiCo. The investment from Kgodiso will enable Khula! to continue developing digital solutions to sustainably finance emerging farmers and to support market linkages. Established in 2016, Khula! is a supply chain solution for emerging farmers connecting them directly to formal markets. It offers the Inputs Mobile App, enabling farmers to buy 2,000+ products, from seeds to fertilisers, and the Fresh Produce Trader Mobile App, allowing them to market their produce. The Kgodiso Fund supports South African farmers, SMEs, and black-owned start-ups. Besides the Kgodiso Fund, other shareholders of Khula! Include Absa Bank, AECI and E Squared Investments.
18/11/23
Aavishkaar Capital’s new $150M fund to target Indian agritechs
Impact investor Aavishkaar Capital has reportedly closed its sixth India fund at USD 150 million, 50% higher than its predecessor funds. The fund will support early-stage businesses and growth companies in India, including agri/foodtechs, fintechs, and climate techs. Aavishkaar plans to make eight investments by March 2024, deploying over 30% of the USD 150 million. It also aims to apply gender-based metrics to its investment strategy. Behind the funds are British International Investment (BII), Swiss Investment Fund for Emerging Markets (SIFEM) and Self-Reliant India Fund (SRI). Last September, Aavishkaar was one of the funders behind the USD 10 million Series B round in Ergos, an Indian agritech that digitises grain storage, links farmers to markets, and provides affordable credit. Aavishkaar is also behind Agrostar, one of India’s leading agritechs, which has a market linkage and customised crop advisory solution.
20/11/23
Drone company BharatRohan plans India expansion with UN/Gates programme
Indian drone company BharatRohan has formed a partnership with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The startup will be a member of the new cohort participating in a coaching programme on inclusive business models in agriculture and food systems supported by ESCAP with the Bill & Melinda Gates Foundation. Through the partnership, BharatRohan aims to incorporate inclusive business practices and expand its reach in the states of Telangana and Haryana. With the support of ESCAP, BharatRohan also plans to address regulatory challenges, enter international markets, and provide training services to farmers to allow them to integrate drone crop monitoring services. The agritech uses hyperspectral technology to provide farmers with precise insights, reducing costs, and ensuring quality, residue-free yields. It has to date enrolled 19,000+ farmers.
21/11/23
Apollo gets $2.2M to enable Kenyan farmers to access fertilisers
Kenyan agritech Apollo Agriculture has received a USD 2.2 million credit guarantee, including technical assistance, from the African Development Bank (ADB) to support farming productivity by facilitating access and use of fertilisers. These new funds will be channeled via the ADB’s Africa Fertiliser Financing for Sustainable Agriculture Management project, part of the Africa Fertiliser Financing Mechanism (AFFM). In the period 2024-2026, Apollo will support the distribution of 7,000+ tonnes of fertilisers to 100,000 Kenyan smallholder farmers (50% female farmers). Apollo will us its network of 150 retail agro-dealers and 800 village-based agents to sell fertilisers. The agritech’s digital platform and mobile applications will play a pivotal role in ensuring easy access to inputs. Founded in 2016, Apollo has a digital platform that enables farmers to access finance, agricultural inputs, insurance, and optimised agricultural advice. It has to date raised USD raised USD 61.7 million, according to Crunchbase.
Photo credit: ADB, Apollo Agriculture
A couple that we missed…
02/11/23
India’s B2B agritech Growcoms bags $3.5M to digitise spice value chain
Indian B2B agritech startup Growcoms has raised USD 3.5 million in a funding round from JSW Ventures and Arali Ventures, with participation from existing investor InfoEdge Ventures. Growcoms procures spices, powders, oils, and oleoresins from farmers, and sells them via its digital platform to enterprise clients such as food and FMCG companies. The startup plans to use the funds to strengthen its product portfolio and build tech capabilities to enable traceability in the value chain. Established in 2020, Growcoms uses blockchain technology to provide traceable spices to its clients. It was supported under the Startup India Seed Fund Scheme (SISFS) and incubated at Indigram Labs Foundation. It has to date raised USD 4.5 million, according to Crunchbase. India is the world’s largest producer of spices and holds a 70% share in global spice production.
03/11/23
India’s Bull Agritech raises $100K in pre-seed round
Indian startup Bull Agritech has raised USD 100,000 (INR 8 million) in a pre-seed funding round led by startup accelerator PedalStart. Bull Agritech has been part of the One-to-N cohort by PedalStart itself. Founded in 2021, Bull Agritech is a commodity supply chain company operating in North Gujarat, which aims to connect farmers producing non-perishable commodities directly to processors. It plans to use funds to accelerate operations and to expand the team. To date, Bull Agritech has onboarded 15,000 farmers in about 18 months.