Shamba Satisfaction has since 2016 labored to reinforce last-mile distribution for farm inputs and sort out worth exploitation and high quality points for farmers by means of its service provider community dubbed digishops.
The agtech has, up to now, constructed a community of two,700 retailers (agro-dealers) extending throughout 24 counties in Kenya, which represents simply over half of the nation. It now plans to scale additional into the nation to cowl extra retailers and agricultural areas within the subsequent one yr, and later discover neighboring markets like Tanzania, Uganda and Zambia, which have related farm enter provide chain challenges, like sourcing, unpredictable costs, high quality challenges and stockouts.
Its Kenya progress, which additionally contains the enlargement of its franchise community, shall be fueled by a $3.7 million debt-equity pre-series A funding the corporate has secured from the EU agriculture financing initiative EDFI AgriFI and Seedstars Africa Ventures (SAV). The brand new funding, which incorporates $1.7 million fairness, follows $1.1 million capital raised in 2021 from SAV and Grey Issues Capital.
Shamba Satisfaction digitizes agro-dealers to energy varied duties together with enterprise administration and stock ordering, which ensures the provision of provides like fertilizers and seeds to tens of millions of small-scale farmers in rural areas.
“Agriculture distribution in rural communities is closely managed by agro-dealers who determine how farmers entry inputs, companies and coaching. We’re empowering these agro-dealers by giving them the precise instruments and expertise for visibility of their companies, for his or her skilled and business improvement and proper assist for farmers round them,” Shamba Satisfaction founder and CEO, Samuel Munguti, informed TechCruch.
The agtech additionally supplies farmers with market linkages, Purchase Now Pay Later (BNPL) monetary companies and coaching info by means of its USSD platform.
It primarily targets small-scale farmers which might be a part of Kenya’s agriculture sector, which contributes 33% of the nation’s gross home product, employs over 40% of the nation’s inhabitants and greater than 70% of these in rural settings. It additionally accounts for 65% of its export earnings, making it a key sector of the nation’s economic system and a spotlight space for innovators.
“Shamba Satisfaction’s success is predicated on improvements which facilitate day-to-day farming actions. We’ve been proud to assist a scalable mannequin which creates extra revenues for farmers and agrovets (agro-dealers) and strongly contributes to profitable ladies entrepreneurship,” stated Maxime Bouan, a normal accomplice at SAV, which final week obtained $30 million and $10.5 million from EIB and AFDB, respectively.
SAV is a sector-agnostic fund eager on startups that tackle primary wants corresponding to schooling, healthcare and utilities, or enhancing items, companies and effectivity.
Shamba Satisfaction sources stock from companions corresponding to French multinational Elephant Verve that provides it with “climate-smart” farm inputs, which is a part of the agtech’s technique to construct resilience for small-holder farmers.
