Prime 5 Agritech startups in Nigeria by funds raised in 2021/2022

Nigeria, lately, has seen a rise within the variety of corporations addressing challenges within the agriculture sector with know-how. With this development, Nigeria has turn into one of the crucial vibrant agritech markets in Sub-Saharan Africa because the market continues to draw funders and help organisations from throughout the globe.

Immediately a number of agritech corporations akin to Farmcrowdy, Thrive Agric, AgroMall, Howdy Tractor, and Crop2Cash, amongst others, are providing modern digital options to handle Nigeria’s agriculture issues. These corporations have launched digital options that intention to enhance farmers’ entry to markets, finance, belongings, and actionable data-driven data

Nonetheless, investments on this phase are nonetheless very low as buyers are shying away from agritech because of the perceived danger of investing in agriculture and the chance price in comparison with different sectors. Whereas among the agritech startups have attracted industrial investments and benefitted from grant funding, many of those corporations are but to get the wanted impetus to scale.

Amidst the paucity of funds within the sector, these agritech startups secured vital funding within the quantity of $84.05 mixed for the interval in assessment

Howdy Tractor ($1 million)

• Howdy Tractor is a Nigerian agritech firm that focuses on connecting tractor homeowners and smallholder farmers in Sub-Saharan Africa by means of farm gear sharing purposes.
• Based in 2014 by Jehiel Oliver and Van Jones, the corporate has rolled out a monitoring machine and software program that enables farmers and tractor homeowners to e book related tractors from their telephones. Farmers get a crucial service previously unavailable to them, and homeowners see a fleet optimisation alternative that additionally minimises gas theft and fraud.
• In Might 2022, Howdy Tractor raised $1 million in funding from Heifer Worldwide, which helps farmers and native meals producers to strengthen native economies and construct safe livelihoods that present a residing revenue. The money is funding a brand new programme, “Pay-As-You-Go (PAYG) Tractor Financing for Elevated Agricultural Productiveness in Nigeria.

Vendease ($3.2 million)

• Vendease is an agri-tech startup that lets eating places and different meals companies purchase provides immediately from producers and farms. The agritech platform not too long ago raised $3.2 million seed funding to remodel Africa’s meals provide chain in a funding spherical led by World Founders Capital with participation from Y Combinator, Hustle Fund, Liquid 2 Ventures, and Soma Cap.
• The funding comes seven months after the corporate, together with 9 different African entrepreneurs, participated in Y Combinator’s winter batch.
• Vendease was based in January 2020 by Tunde Kara, Olumide Fayankin, Gatumi Aliyu, and Wale Oyepeju, to unravel Africa’s meals provide chain issues by automating procurement procedures, storage operations, logistics, and offering versatile cost methods to assist meals companies develop.
• By way of its cell and internet apps, Vendease permits meals companies to put orders for meals provides, handle stock, observe bills and acquire entry to credit score services.

Releaf ($4.2 million)

• Releaf is an agritech start-up based by Ikenna Nzewi and Uzoma Ayogu, with a deal with growing proprietary {hardware} and software program options that make African farmers and meals factories extra environment friendly and worthwhile.
• The agency 2021 raised $2.7 million in a seed funding spherical led by Samurai Incubate Africa, Future Africa, and Consonance Funding Managers, with participation from Stephen Pagliuca, Chairman of Bain Capital, and Justin Kan (Twitch). As well as, Releaf additionally secured $1.5 million in grants from The Problem Fund for Youth Employment (CFYE) and USAID, making a complete of $4.2 million in seed funding and grant.
• Releaf’s software program connects the start-up to greater than 2,000 smallholder farmers, making certain constant, large-scale provide. Whereas palm kernel oil manufacturing shouldn’t be overseas to Nigeria, Releaf’s know-how and scale imply it might probably course of 500 tonnes of palm nuts per week.
• The software program choices additionally enable the start-up to obtain inbound provide requests from farmers through USSD, present working capital financing in addition to gather proprietary information on provide availability.

Agricorp ($17.5 million)

• Agricorp is a Nigerian spices producing, processing, and exporting firm. The corporate September final yr raised $17.5 million in Sequence A funding to extend its processing capability as much as 7000 metric tonnes.
• This fund was raised from Vami Nigeria, One Capital LLC and AFEX. Nigerian-based Vami led the funding spherical with $11.5 million in fairness, whereas the opposite buyers supplied working capital financing for the corporate. Ernst & Younger (Nigeria) served as transaction advisers whereas Elisio Regulation Workplace and Pavestone Authorized served as authorized advisers.
• Based in 2018 by Kenneth Obiajulu and Wale Omotimirin, Agricorp is contributing to assembly the rising demand of spices as an export materials. Information from Nigeria’s Ministry of Agriculture exhibits that regardless of being the third highest exporter of ginger globally, Nigeria’s ginger manufacturing is put at 31 million MT whereas demand is put at 65 million MT, leaving a spot of 34 million MT.

ThriveAgric ($58.15 million)

• ThriveAgric has not simply recorded the biggest fundraising within the agritech sector, it was one of many high Nigerian startup fundraisers in Q1 2022. The corporate was based by Uka Eje, and Ayodeji Arikawe to supply entry to finance, premium markets, and data-driven advisory for smallholder farmers.
• Final yr, the firm secured a $1.75 million grant to help 50,000 smallholder farmers rising rice, maize, and soybean in Nigeria. The grant is supplied by the West Africa Commerce and Funding Hub, a undertaking funded by the United States Company for Worldwide Improvement (USAID) to enhance meals safety within the nation.
• In March 2022, ThriveAgric secured $56.4 million in debt funding from industrial banks and institutional buyers, bringing its whole fund raised between 2021 and 2022 to $58.15 million.
• With the brand new funding, the corporate plans to broaden its 200,000+ farmer base, in addition to enter new markets in Africa, together with Ghana, Zambia, and Kenya.

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