Shamba Pride recently secured a $3.7 million debt-equity pre-series A funding to bolster its efforts in enhancing last-mile distribution for farm inputs in Kenya. The investment was facilitated by the EU agriculture financing initiative EDFI AgriFI and Seedstars Africa Ventures (SAV), comprising $1.7 million in equity. Notably, this funding follows a prior capital infusion of $1.1 million in 2021 from SAV and Gray Matters Capital.
The agtech, founded in 2016, has amassed a network of 2,700 merchants, known as digishops, spread across 24 counties in Kenya, covering over half of the country. The primary goal of this funding is to further expand Shamba Pride’s presence in Kenya, including an expansion of its franchise network. Additionally, the company aims to address farm input supply chain challenges, such as sourcing, unpredictable prices, quality issues, and stockouts, by venturing into neighboring markets like Tanzania, Uganda, and Zambia.
Shamba Pride’s innovative approach involves digitizing agro-dealers, empowering them with tools for business management and inventory ordering. This, in turn, ensures a consistent supply of crucial agricultural inputs, such as fertilizers and seeds, to millions of small-scale farmers in rural areas. The agtech’s focus on empowering agro-dealers aligns with its mission to provide visibility, professional development, and adequate support to these key players in the agricultural distribution chain. Moreover, Shamba Pride plays a pivotal role in the agriculture sector, contributing to 33% of Kenya’s GDP and employing over 40% of the population, particularly in rural areas.
Why the Investors Invested
The decision of EDFI AgriFI and SAV to invest $3.7 million in Shamba Pride stems from the agtech’s impactful initiatives and potential for addressing critical challenges in the agricultural sector. The fact that SAV is a sector-agnostic fund, specifically focused on startups addressing basic needs and enhancing goods and services, underscores the strategic alignment with Shamba Pride’s mission.
Shamba Pride’s success is rooted in its ability to empower agro-dealers through digital tools, contributing to the professional and commercial development of these vital stakeholders. The agtech’s model not only facilitates day-to-day farming activities but also creates additional revenues for farmers and agrovets, significantly contributing to successful women entrepreneurship in the sector. The investors recognize the scalability of Shamba Pride’s model and its potential to bring positive changes to the agriculture value chain, addressing issues related to accessibility, quality, and financial services for farmers.
A Look at Shamba Pride:
Founded in 2016, Shamba Pride focuses on enhancing last-mile distribution for farm inputs, combating price exploitation, and addressing quality issues for farmers in Kenya. The agtech has built a robust network of 2,700 merchants across 24 counties, covering over half of Kenya. Shamba Pride’s primary markets include small-scale farmers in the agriculture sector, constituting 33% of the country’s GDP and employing over 40% of the population, particularly in rural settings.
The startup plays a pivotal role in digitizing agro-dealers, providing them with tools for business management and inventory ordering. This ensures the availability of vital supplies like fertilizers and seeds to millions of small-scale farmers in rural areas. Shamba Pride’s commitment extends to offering market linkages, Buy Now Pay Later (BNPL) financial services, and training information through its USSD platform. Additionally, the company sources inventory from partners like the French multinational Elephant Verve, focusing on “climate-smart” farm inputs to build resilience for small-holder farmers. The successful integration of these strategies positions Shamba Pride as a key player in revolutionizing agricultural distribution and supporting the economic growth of the sector.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.