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Kenyan firm Shamba Pride raises $3.7M to grow its merchant network

Shamba Pride

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TL;DR

  • Kenyan agtech company has raised more than $3 million to increase its merchant network.
  • Resilience and collaboration in the agtech industry.

Shamba Pride, an agtech company based in Kenya, has been actively working since 2016 to improve last-mile distribution of farm inputs and address issues related to price exploitation and quality for farmers. The company has established a network of 2,700 merchants, referred to as agro-dealers, across 24 counties in Kenya, covering over half of the country.

Shamba Pride to develop its merchant network

Shamba Pride’s primary focus has been on mitigating challenges faced by farmers in sourcing inputs, dealing with unpredictable prices, addressing quality concerns, and avoiding stockouts. The company is now planning to expand its operations further within Kenya, aiming to cover more retailers and agricultural regions within the next year. Additionally, Shamba Pride has its sights set on exploring neighboring markets, including Tanzania, Uganda, and Zambia. These countries face similar challenges in their farm input supply chains, such as sourcing difficulties, fluctuating prices, quality issues, and stockouts.

To fuel its growth in Kenya, Shamba Pride has secured a $3.7 million debt-equity pre-series A funding from the EU agriculture financing initiative EDFI AgriFI and Seedstars Africa Ventures (SAV). This funding includes $1.7 million in equity and follows a capital raise of $1.1 million in 2021 from SAV and Gray Matters Capital. Shamba Pride’s approach involves digitizing agro-dealers to streamline various tasks, including business management and inventory ordering. This digital transformation ensures the efficient availability of essential supplies like fertilizers and seeds to small-scale farmers in rural areas.

The founder and CEO of Shamba Pride, Samuel Munguti, emphasized the significance of empowering agro-dealers. These dealers play a pivotal role in controlling agriculture distribution in rural communities, influencing how farmers access inputs, services, and training. Shamba Pride aims to provide agro-dealers with the necessary tools and technology to enhance the visibility of their businesses, support their professional and commercial development, and offer assistance to farmers in their vicinity. Apart from digitizing agro-dealers, Shamba Pride extends its services to farmers by providing market linkages, Buy Now Pay Later (BNPL) financial services, and training information through its USSD platform.

Resilience and collaboration in the agtech industry

The company primarily targets small-scale farmers who form a crucial part of Kenya’s agriculture sector. This sector contributes 33% to the country’s gross domestic product, employs over 40% of the population, and encompasses more than 70% of those living in rural settings. Additionally, agriculture accounts for 65% of Kenya’s export earnings, making it a vital sector for innovators and entrepreneurs. Shamba Pride’s success is attributed to its innovative approach, facilitating day-to-day farming activities.

The company takes pride in supporting a scalable model that generates additional revenues for both farmers and agro-dealers. Maxime Bouan, a general partner at SAV, highlighted the significance of Shamba Pride’s contribution, particularly in supporting successful women entrepreneurship within the agriculture sector. As part of its strategy to build resilience for small-holder farmers, Shamba Pride collaborates with partners like the French multinational Elephant Verve.

This partnership involves sourcing inventory from Elephant Verve, which provides “climate-smart” farm inputs. By incorporating climate-smart solutions, Shamba Pride aims to contribute to the sustainable and resilient practices of small-scale farmers, ultimately enhancing the overall agricultural ecosystem. Shamba Pride’s commitment to digitizing agro-dealers, empowering farmers, and addressing critical challenges in the agriculture sector positions it as a key player in the agtech landscape in Kenya. The recent funding injection from EDFI AgriFI and SAV is expected to accelerate the company’s expansion plans, allowing it to reach more retailers, cover additional agricultural regions, and explore opportunities in neighboring markets facing similar supply chain challenges.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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