Digital Agriculture in LMICs - 3 Oct #68
Winich Farms raises $3M in Nigeria; Greenikk shuts down in India; Govt. of Nigeria, Mastercard and AfDB partner for farmer DFS
27/09/24
Nigeria and Mastercard announce partnership for farmer digital financial services
At UNGA, the Government of Nigeria and Mastercard have announced a partnership to support financial inclusion for one million African farmers through digital financial services. The initiative, which also involves the African Development Bank (AfDB), will focus on advancing access to contactless payments for critical financial services for agricultural workers in Nigeria, as well Tanzania and Kenya. More details are yet to emerge about the rollout of this programme. During the meeting, the Vice President of Nigeria said that the initiative is an important milestone in the country’s quest for comprehensive financial inclusion and agricultural empowerment, and it is expected to boost productivity and economic growth in the sector. The Vice President also recognised the challenges of the digital payments ecosystem in Nigeria and issues related to trust with digital payments, which have so far hindered the adoption of contactless payments.
01/10/24
India’s Greenikk terminates operations
Kerala-based agribusiness start-up Greenikk has shut down due to high losses and funding challenges. The company described itself as a banana farmer-centric digital ecosystem. It developed a digital platform to connect farmers, dealers, wholesalers, and B2B buyers, also enabling farmers to access inputs and markets. Loan defaults and payment collections have been key challenges for Greenikk, which struggled to recover funds from its B2B customers. The company highlighted high defaults in the agri sector as a key issue behind its failure to operate in the market.
Greenik’s cofounder and CEO Fariq Naushad said that, given market conditions, the company could have become a low-revenue startup with limited scalability, but that was not the goal of the cofounders. Established in 2022, Greenikk had grown to 25 employees. It had raised around USD 1 million from investors, including USD 100,000 from the government-backed Biotechnology Industry Research Assistance Council (BIRAC). The company started by producing biodegradable straws from stalks of papaya plants. India accounts around 25 per cent of the world’s banana production.
02/10/24
Winich Farms raises $3M in pre-series A funding round in Nigeria
Nigerian agritech startup Winich Farms has raised USD 3 million in pre-series A funding to expand its order fulfilment centres and improve its technology. The funding round was led by Acumen Resilient Agriculture Fund (ARAF), which contributed USD 2.5 million. Other investors participating in the round include Climate Resilient Africa Fund, Marula Square, Plug and Play Tech Centre, and Tekedia. Sahel Capital contributed with USD 590,000 in debt financing.
Photo credit: Winich Inc.
Established in 2020, the startup’s core offer is a market linkages platform connecting smallholder farmers producing grains with buyers such as factories and retailers. The startup operates collection points run by agents who process orders from buyers. When agents receive an order on the app, they rally local farmers to bring produce to the collection enter. Produce is then delivered to the buyer within 24 to 72 hours. Over time, Winich has expanded to support embedded finance and traceability in agricultural value chains. The startup is part of the GSMA AgriTech Accelerator funded by the German Development Agency (GIZ).
02/10/24
UAE VC targets early-stage startups, including agritechs, in Africa and Middle East
UAE-based VC Agility Global, is looking to invest through a new fund in early-stage startups based out of Middle East and Africa, including those working in agritech. The new fund will be managed by Global Ventures, a Dubai-based investment firm specialised in emerging markets. The investor, which specialises in growth-stage emerging markets, is interested in investment opportunities in clean energy, digital logistics, e-commerce, healthcare and agritech startups. In a statement, Agility Global said that they recognise that only about 15% of all VC ‘cheque-writers’ are women, and they are looking to priorities women-led startups.