AgroCenta, the Ghanaian startup which aims to develop the inclusion of smallholder farmers throughout the agricultural value chain with the support of digital innovation, has just raised $790,000 in pre-series A funding round from UK charity Shell Foundation, the UK’s Foreign, Commonwealth and Development Office (FCDO) (FCDO), AV Ventures and Rabobank Foundation.
“This is a significant milestone for AgroCenta, having the support of leading institutions, particularly with the COVID-19 backdrop, underlining the strength of AgroCenta and the importance of its mission. The demand for agricultural raw materials from offtakers in the brewery, manufacturing and consumer sector is increasing exponentially because of the easing of the COVID-19 restrictions that were put in place by the government of Ghana, hence this capital injection will help to secure purchases at fair and transparent prices from smallholders — a much needed lifeline for many who are at the proverbial bottom of the pyramid,” said Francis Obirikorang, AgroCenta’s CEO and Co-Founder Michael Ocansey.
Why The Investors Invested
All of the investors in this round — Shell Foundation, Foreign, UK Commonwealth and Development Office (FCDO), AV Ventures and Rabobank Foundation — are focused on impact investing. AV Ventures, in particular, has set up a fund in Ghana with focus on SMEs that show significant potential for growth and impact, particularly for small-scale farmers. The Netherland-based Rabobank Foundation is the impact investment fund of Dutch bank Rabobank founded in 1974. The fund invests for self-sufficiency of farmer organizations in 22 countries in Africa, including Ghana.
The investors’ belief in AgrocCenta also draws from the traction the startup had already achieved. In 2018, the startup won the Seedstars World competition. AgroCenta had previously, in 2016 been funded by GreenTec Partners. In 2018, the startup was the recipient of a US$250,000 (£200,000) GSMA Ecosystem Accelerator Grant funded by UK DFID, Australian AID, and the GSMA and its members. The startup said more than 46,000 farmers are already registered on the platform, with over $500,000 in commodities traded, mainly maize, white and yellow, soybeans, cowpeas and sorghum.
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A Look At What AgroCenta Does
Founded in 2016, by former founders of Swappaholics, Francis Obirikorang Obirikorang and Michael Ocansey who were also former employees of the agro company Esoko, AgroCenta has developed the Crop Chain platform. It facilitates trade between smallholder farmers and consumers and / or buyers but also provides market information, storage and delivery solutions and financial services to smallholder farmers in Ghana.
AgroCenta was given birth to as a result of the pivot of Swappaholics, an online platform where users were able to connect and swap products, skills and services.
“We were faced with user growth,” said CEO, Francis Obirikorang, of the fate of Swappaholics. “Our numbers trickled down over time because we faced stiff competition from other classifieds in Ghana who had a lot of financial muscles to spend on advertisement.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
AgroCenta Pre-series A AgroCenta Pre-series A