Kenyan agritech startup Shamba Pride has secured a significant $3.7 million in debt-equity pre-Series A funding to fortify its operations in Kenya and extend its merchant network. The funding round saw the participation of the European Union agriculture financing initiative, EDFI AgriFI, and Seedstars Africa Ventures (SAV), with $1.7 million dedicated to equity. This infusion of capital comes more than two years after Shamba Pride raised $1.1 million from Seedstars Africa Ventures and Gray Matters Capital, supporting its nationwide expansion and the deployment of its solution to over 1000 shops.
Shaping Agricultural Trade Ecosystem:
Founded in 2016 by Samuel Munguti, Shamba Pride functions as an ecosystem for agricultural trade, offering an online-to-offline platform designed to empower agricultural input distributors, commonly known as “agro-dealers.” The platform equips these agro-dealers with tools and technology to enhance their capacity to provide farmers with high-quality agricultural products, services, and information.
Funding Participants and Structure:
EDFI AgriFI and Seedstars Africa Ventures (SAV) played a pivotal role in the recent funding round, underscoring their commitment to supporting innovations in the agritech sector. The funding comprises both debt and equity components, with $1.7 million earmarked for equity investments, reflecting investor confidence in Shamba Pride’s potential to drive positive change in Kenya’s agricultural landscape.
The Growth Trajectory:
Shamba Pride’s strategic focus on supporting small-scale farmers in Kenya aligns with the agricultural sector’s substantial contribution to the country’s GDP, amounting to 33%. This sector is a major employer, engaging over 40% of the population, with more than 70% residing in rural areas. Notably, the agritech sector, where Shamba Pride operates, accounts for an impressive 65% of the nation’s export revenue, emphasizing its pivotal role in driving economic growth and fostering innovation.
Empowering Agro-Dealers:
CEO Samuel Munguti emphasized the critical role played by agro-dealers in influencing agricultural distribution in rural areas. With the newly acquired funding, Shamba Pride aims to empower these agro-dealers by providing them with the necessary technology and tools to increase the visibility of their businesses. This support is expected to benefit local farmers, fostering their professional and commercial development.
Shamba Pride’s Offerings:
Shamba Pride’s platform offers a range of services tailored for the agricultural sector, including farmer market links, Buy Now, Pay Later (BNPL) financial services, and training information delivered through its USSD platform. By combining technology and agriculture, Shamba Pride aims to bridge gaps, streamline processes, and contribute to the growth of the agritech sector.
With the infusion of $3.7 million in funding, Shamba Pride is poised to make significant strides in transforming Kenya’s agricultural landscape. The startup’s commitment to empowering agro-dealers and supporting small-scale farmers aligns with the broader goal of fostering sustainable agriculture and economic development. As Shamba Pride continues to expand its operations and offerings, it stands as a testament to the power of innovative solutions in driving positive change within the agritech sector.