ThriveAgric, a rapidly expanding technology-driven agricultural enterprise, has secured $56.4 million in debt financing from local commercial banks and institutional investors. A $1.75 million co-investment grant from the USAID-funded West Africa Trade & Investment Program was also included in the funding round. The additional funding will allow the company to expand into new African markets, such as Ghana, Zambia, and Kenya, and grow its 200,000+ farmer base.
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ThriveAgric, which was founded in 2017 (and has been fully operational since 2018), enables Nigerian farmers to sell their products to FMCGs and food processors by leveraging its proprietary technology to gain access to finance, improve productivity, and increase sales in order to promote food security. The system, known as an Agricultural Operating System (AOS), is completely offline, sends USSD messages to farmers, and enables Android apps that help field agents digitally collect creditworthy farmers and acquire vital farm data.
This latest round of funding comes after the company raised $9 million in 2020.
ThriveAgric revenues have surged fivefold in the last year, with a 277 percent growth in farmer numbers year over year. Farmers who used the company AOS unique product contributed to the company’s good profit performance.
The company aids smallholder farmers in producing high-quality grains, which benefits African agriculture sector. Harvests, such as maize, rice, and soybeans, are housed in several of the company’s 450 warehouses in Nigeria Bauchi, Jigawa, Kaduna, Kano, and Katsina states before being commoditized and sold at a premium price to local and international trade markets.
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“The additional investment gets us one step closer to accomplishing our aim of developing the greatest network of prosperous African farmers using technology to achieve food security,” stated Chief Executive Officer Uka Eje of the monetary impact. We are optimistic about the future, knowing that this new investment will benefit our smallholder farmers even more financially. Despite a tumultuous backdrop created by the global epidemic over the last few years, ThriveAgric experienced periodic payment difficulties to our retail crowdfunders. However, within a year, we were able to overcome those obstacles and keep the company profitable. Investors’ faith in ThriveAgric is bolstered by our strong financial performance.
“It encouraging to see that the market has overwhelmingly supported our farmers and that they are confident in our strategic decisions.” ThriveAgric footprint in Nigeria has grown to 20 states, and we anticipate continued expansion as we continue to connect African farmers to funding, data-driven best practices, and access to local and global markets for their crops.”
Over 80% of Nigeria’s agriculture industry is made up of smallholder farmers.
Access to capital, advice, and markets are all major roadblocks. On less than $1.90 per day, about 72% of people live in poverty.
Farmers who work with ThriveAgric can charge premium prices for their products, increasing their earnings by up to 25%. ThriveAgric was unable to meet its duties to its subscribers because of business and supply difficulties during the global pandemic, prompting the rapid employment of key people such as Olurotimi Arigbede, Chief Financial Officer, and Michael Kadiri, Head of Risk Management and Compliance. The organization was able to resolve all outstanding subscriber disputes thanks to the enhanced management structure.
“ThriveAgric fundraising objectives are aimed toward expansion through vertical and horizontal integration,” stated Ayo Arikawe, co-founder and CTO of ThriveAgric. One of our objectives is to increase smallholder farmers access to markets, thereby assisting them in escaping poverty and promoting food security. We accomplish this by allowing them to sell their products in both local and worldwide markets. We are ecstatic to have received assistance from such prestigious investors.