Cold-chain startup Figorr has successfully raised $1.5 million in seed funding in a round led by Atlantica Ventures, signaling a significant milestone for the Nigerian-based company. The fundraising efforts were supported by notable participants, including Vested World, Jaza Rift, and Katapult.
Figorr, formerly known as Gricd, was founded by Oghenetega Iortim, who was driven by the vision of enhancing storage and transportation methods for temperature-sensitive products. His motivation stemmed from the post-harvest losses experienced in his previous venture involving fresh agro-produce.
The startup specializes in providing IoT-powered solutions that cater to businesses operating in sectors such as healthcare and agriculture. Figorr’s innovative devices offer crucial data on factors like location, humidity, and temperature for highly perishable products. This information empowers entrepreneurs to minimize losses resulting from a lack of visibility. The devices themselves are provided to users at no cost, with customers subscribing to access the collected data.
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Recognizing the increasing demand for its solutions beyond Nigeria, Figorr is embarking on an expansion initiative. The recent $1.5 million seed funding round, with Atlantica Ventures at the forefront, serves as a catalyst for the startup’s growth. To date, Figorr has secured $1.7 million in equity funding and an additional $275,000 in grants from various entities, including the Google Black Founders Fund, Africa Business Heroes by Jack Ma Foundation, FbStart, and Lafiya Innovators by Impact Hub.
Currently, Figorr’s solutions are successfully implemented in several countries, including Ethiopia, Ghana, Kenya, South Africa, Tanzania, and Uganda. The startup recently made its entry into the Kenyan market, capitalizing on the growth opportunities within the agriculture sector.
Founder and CEO Oghenetega Iortim emphasizes the significance of Kenya as an exciting market for Figorr. The agricultural landscape in Kenya presents valuable prospects, making it a potential gateway to new markets. Iortim states, “We also believe it could be a very key springboard into new markets.”
Looking ahead, Figorr has plans to launch a risk management platform by the end of the year. This platform will leverage the extensive data collected over the past three years to provide insurance companies with insights required for the development of tailor-made products. By equipping insurance providers with specific and suitable data, Figorr aims to revolutionize business operations, particularly for smallholder farmers.
Iortim identifies a common challenge faced by Figorr’s customers, wherein the fear of exposure to unfavorable conditions creates uncertainty. He states, “We are helping insurance companies to see the opportunity by providing them with the data [and] for our customer, if something goes wrong, they will have some comfort that insurance is providing them with some level of coverage.” The introduction of insurance solutions not only mitigates losses for businesses but also contributes to cost reduction, preventing the need to pass losses onto customers.
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Figorr initially began in 2019 as a provider of mobile solar-powered storage boxes. However, following market feedback, the startup pivoted its focus to emphasize the IoT component of its product. This strategic decision to prioritize monitoring temperature-sensitive products and providing location insights proved to be more aligned with market demand.
Iortim remains optimistic about Figorr’s growth trajectory, given the abundant opportunities emerging in Africa’s agriculture and health sectors. In Nigeria, the company’s devices are primarily utilized in the healthcare industry to monitor temperature-sensitive items like vaccines and insulin. In markets like Kenya, the agriculture sector drives demand, particularly among horticulture businesses.
In sub-Saharan Africa, a significant portion of food, approximately 37%, equivalent to 120–170 kg per capita per year, is lost or wasted due to inadequate storage and handling. However, these losses can be prevented through the implementation of innovative solutions provided by startups like Figorr. By offering real-time monitoring and secure storage options, Figorr is actively contributing to the reduction of food wastage and ensuring the safe delivery of temperature-sensitive products. The impact of Figorr’s work extends beyond the realm of food security, with its solutions also facilitating improved accessibility to healthcare and enhanced incomes for individuals and communities.
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