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Notable For Backing Farmers’ Co-operatives, ABC Fund Invests $1m In Kenya’s Apollo Agriculture

June 23, 2021

The Agri-Business Capital Fund (ABC Fund) has previously invested USD12 million in three Côte d’Ivoire farmer co-operatives, six small-and medium agri-businesses in Burkina Faso, Ghana, Mali, and Côte d’Ivoire, and two financial institutions in Ecuador, Kenya, and Uganda that on-lend to smallholder farmers. However, it does not appear to be cutting back on its investments anytime soon. Apollo Agriculture, a Kenyan ag-tech firm, has joined its portfolio, with the Luxembourg-based fund announcing a USD1 million investment in the Kenyan ag-tech which uses machine learning and automated operations technology to help small scale farmers access the resources they need to maximise their profitability.

Eli Pollak, CEO at Apollo Agriculture, — *Eli Pollak*, *CEO at Apollo Agriculture*

“We are thrilled to partner with the ABC Fund. This funding will support our strong continued growth, enabling us to help more small-scale farmers access high-quality farming inputs, advice and insurance on credit, significantly increasing their yields and income. Apollo’s automated, tech-driven approach is designed to help millions of farmers make the transition from subsistence to commercial farmer sustainably. We are excited to have ABC Fund as a strong partner as we continue to scale,” Eli Pollak, CEO at Apollo Agriculture, said.

Apollo plans to utilize the funds to expand its high-impact ag-tech solution to additional smallholder farmers who are unable to get microfinance or commercial bank loans. The investment will help to promote food security and alleviate food scarcity in rural Kenya.

Why The Investor Invested

Despite the obstacles of the Covid-19 epidemic, Apollo has expanded fast, nearly doubling its client base in the previous year. According to over 240 Apollo farmers interviewed, 71% of them claim their production has “much risen” since working with Apollo. This perhaps informed the latest investment by ABC Fund.

One of Apollo’s earliest investors, Accion Venture Labs had noted that the startup’s ability to address a core financing need for a large, underserved segment was one of the key reasons why it made investment into Apollo.

“Apollo is working with smallholder farmers in Africa who are growing vital staple crops, such as maize, tomatoes, sorghum, potatoes, and beans. The farmers in this segment cover a range of economic levels, including those who are truly the poorest of the poor to those who own small, commercial farms. Apollo’s model is flexible enough to work with all socioeconomic levels of smallholder farmers,” it said, then.

Nevertheless, Emanuele Santi, Fund Manager for the ABC Fund at Bamboo Capital Partners, says:

“Apollo is an excellent example of a technology-driven business which is making a real difference to improve the lives of marginalised farming communities in Kenya. Apollo’s innovative solution to help smallholder farmers maximise profitability is proven, and moreover, it is directly improving food security and reducing shortages in the region. We are delighted that the ABC Fund now has the opportunity to play a crucial role in scaling Apollo to enable it to reach even more smallholder farmers and continue delivering a positive impact on the ground.”

Although headquatered in Luxembourg, the ABC Fund is managed by Bamboo Capital Partners which maintains an office in Kenya. The Fund is a blended-finance impact fund that offers catalytic funding to underrepresented but lucrative parts of developing-country agricultural value chains.

A Look At What Apollo Agriculture Does

Based in Nairobi, Apollo Agriculture is a commercial farming platform for small-scale farmers that uses machine learning and automated operations technology to help them access everything they need to maximise their profitability, from financing and insurance, to farming products and optimised advice.

Apollo offers farmers a comprehensive package that includes finance, farming inputs, guidance, and insurance. Apollo’s vertically integrated digital strategy uses machine learning and satellite data to provide service to consumers across the full lifecycle, from acquisition to credit decisions to payback collection.

Farmers apply for a loan through Apollo and are then visited by one of Apollo’s field representatives who verifies information about their farm. Apollo then does a credit evaluation using a sophisticated machine learning algorithm. The farmer receives a coupon code to redeem at one of Apollo’s licensed agro-dealers in Kenya after the credit assessment is accepted. Instead of cash, the farmer receives seeds and fertilizer and repays the loan via mobile payments after harvest. Apollo’s primary product is a packaged maize product, but it has diversified in recent seasons, launching pilots with other crops such as potatoes, tomatoes, and sorghum.

ABC Fund, Apollo Agriculture ABC Fund, Apollo Agriculture

Why Investor Accion Venture Lab Invested In Kenyan Agritech Startup Apollo Agriculture

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 write

Kenyan Agritech Startup Apollo Agriculture Raises $6m Series A To further Scale Its Business

May 21, 2020

Apollo Agriculture, the Kenyan agri-tech startup has secured a US$6 million Series A funding round to continue rapidly scaling by partnering with more farmers, expanding its product offerings, and growing its team.

“We are incredibly excited to bring together a world-class group of investors, with expertise across financial services and agriculture, to help power Apollo’s growth in the coming years,” said Eli Pollak, Apollo’s chief executive officer (CEO) and co-founder.

Here Is What You Need To Know

This funding round was led by Anthemis Exponential Ventures with participation from Leaps by Bayer, Flourish Ventures, Sage Hill Capital, To Ventures Food, Accion Venture Lab and Newid Capital, among others.
Apollo has already partnered with close to 25,000 farmers so far in 2020.

“Our mission is more important than ever in the context of COVID-19, when health risks, supply chain disruptions, and reduced mobility threaten food security for millions globally. Our digital model has enabled us to continue partnering with farmers to produce more food, despite the unprecedented disruptions of COVID-19,” said Eli.

Why The Investors Invested

Vica Manos, partner at Anthemis, said the Apollo Agriculture team was solving a massive gap in the agricultural space by helping small-scale farmers turn their daily labour into profitable businesses.

“We are very excited to back the Apollo team on their journey to change the lives of millions of farmers that have been overlooked by traditional financial services companies, by providing them with the right instruments, from optimized financing and farming tools to valuable farming advice. In light of the global pandemic, their mission is more urgent than ever,” he said.

Read also: Would The Coronavirus Epidemic Affect Fund Raising For African Startups In 2020?

A Look At What Apollo Agriculture Does

Based in Nairobi, Apollo Agriculture is a commercial farming platform for small-scale farmers that uses machine learning and automated operations technology to help them access everything they need to maximise their profitability, from financing and insurance, to farming products and optimised advice.
Benjamin Njenga, Apollo’s chief customer officer and co-founder, described the opportunity.

“Every farmer, everywhere, deserves the opportunity to farm profitably, and that is not the norm today. There are more than 500 million small-scale farmers globally, and average farm yields per acre across Africa are only 10–20 per cent of those in North America. Apollo exists to change that. We partner with farmers to maximise their farm productivity and profitability,” he said.