Senegalese Agritech Startup Afrikamart Raises $850K Seed
Afrikamart, a Senegalese startup that is using digital technology to revolutionise the value chain of fresh agricultural produce, has raised USD 850,000 in seed funding from BLOC Smart Africa, a fund managed by Bamboo Capital Partners, Orange Ventures, Launch Africa, and Teranga Capital.
“Since the launch of the platform, we have been impressed by the receptiveness of producers and retailers, the first victims of market dysfunctions to which we respond. The annual market for fresh fruits and vegetables in Senegal represents half a million tonnes and a market opportunity of more than one billion US dollars, and our goal is to continue expanding in the subregion,” Mignane DIOUF — Founder and CEO, Afrikamart said.
This funding will allow the company to continue improving its model and expand in Senegal.
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Why The Investors Invested
The startup has generated considerable traction since it was founded. Afrikamart has over 2,000 farmers contributing their produce to it. The startup delivers an average of 10 tonnes of veggies daily to 500 regular consumers in four Senegalese cities. By the end of the year, Afrikamart hopes to have expanded its network to more than 5,000 operators and 2,000 shops across the country.
“Bamboo Capital Partners has deep expertise in both technology venture capital for impact and agricultural investment in Africa. We were impressed with Afrikamart’s potential to combine scalable social and economic benefits for smallholder farmers and retailers with exceptional financial growth potential for society,” said Winnie MWANGI — Fund Manager, Bamboo Capital Partners.
“Digitalization provides an essential solution to agriculture in Africa, a continent facing demographic and food security challenges in addition to the climate crisis. The challenge is to reduce food waste and improve the income of local producers and distributors. At Orange Ventures, we are happy to support Afrikamart’s project for a more efficient agricultural sector,’’Grégoire DE PADIRAC, Principal at Orange Ventures noted.
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“We strongly believe in financing companies that solve real, fundamental problems while creating significant value for businesses and SMEs. Afrikamart’s innovative value offering is revolutionizing the food supply chain in Senegal, making it easier to source locally for HoReCa and retailers. Afrikamart has a significant impact on smallholder farmers as well as SMEs, which we believe is relevant in many contexts across the continent,” Kartik SHARMA, Head of Investments, Launch Africa Ventures, said.
“We are very happy to support Afrikamart in its growth ambition. With the support of I&P Acceleration Technologies, we hope to help scale the company’s innovation and generate significant social and economic impacts,” Olivier FURDELLE, Managing Director, Teranga Capital, added.
Indeed, the fresh produce supply chain in Africa is particularly problematic due to the hyper-fragmentation of the operators. In Senegal, harvest losses can reach 50% of total harvests, from producer to final retailer. Farmers are also subjected to considerable payment delays from intermediaries, with little information on final selling prices. Afrikamart reacts to these issues by digitising all procedures, allowing them to divide losses by 5 and protect operator and retailer income.
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A Look At What The Startup Does
Mignane and Albert Diouf, a software engineer and agricultural commodity trader, founded the startup in 2018. Mignane had already founded two technology companies in France and Senegal before to Afrikamart.
Charles Rapulu Udoh
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh