Campus Business (October 3, 2024) – Nigerian agtech startup Winich Farms has successfully raised $3 million in pre-series A funding to further enhance its technology and optimize operations across its growing ecosystem. The funding round comprised $2.5 million in equity and $590,000 in debt.

The equity funding was led by Acumen Resilient Agriculture Fund (ARAF), a venture capital fund focused on East and West Africa, along with Climate Resilient Africa Fund, Marula Square, Plug and Play, and Tekedia Capital. The $590,000 debt funding came from Lagos-based Sahel Capital.

Supporting the Agtech Ecosystem

Since its launch in 2020, Winich Farms has built a robust ecosystem, serving more than 150,000 users, including farmers, off-takers (small businesses and factories), logistics partners, and collection point agents across 30 states in Nigeria. The company connects farmers directly to buyers while also providing them with inventory management tools, allowing for a seamless farm produce supply chain.

Through partnerships with financial institutions, Winich Farms helps smallholder farmers—many of whom lack access to formal financial services—build their creditworthiness by tracking their earnings over time. To further support farmers, Winich Farms recently launched a debit card in collaboration with Sterling Bank, enabling farmers to save and access funds with ease.

Impressive Growth and Expansion

The company has experienced tremendous growth, with its Gross Merchandise Value (GMV) rising by 300%, from $10 million in 2022 to $30 million by the end of 2023. Expanding its operations beyond Nigeria, Winich Farms entered Tanzania last month, facilitating local supply chains and exporting farm produce to Europe and the Middle East.

Enhancing Technology for Greater Impact

Commenting on the funding round, Richies Attai, CEO and co-founder of Winich Farms, highlighted the company’s commitment to improving the livelihoods of smallholder farmers. “This funding is strategic towards further enhancing our technology infrastructure, making it more user-friendly while advancing our data-driven approach to help farmers access financially inclusive services like credit and insurance. This will increase productivity and allow us to scale operations in line with our expansion plans.”

Investor Confidence

Investors have shown confidence in Winich Farms’ business model and its potential to positively impact the agricultural value chain in Nigeria and beyond. Tamer El-Raghy, Managing Director of Acumen Resilient Agriculture Fund (ARAF), stated, “Investing in Winich aligns with our goal of supporting local businesses that help smallholder farmers increase productivity, promote sustainable agricultural development, and improve food security.”

Addressing Key Challenges for Farmers

Smallholder farmers in Nigeria face significant challenges, from limited access to markets to financial bottlenecks along the agricultural value chain. Winich Farms’ technology aims to alleviate these problems by offering direct market connections and linking farmers to financial products that facilitate increased production capacity.