Kenyan agtech company Shamba Pride has recently secured $3.7 million in debt-equity pre-series A funding from the EU agriculture financing initiative EDFI AgriFI and Seedstars Africa Ventures (SAV). This funding, which includes $1.7 million in equity, will be instrumental in the company’s plans to expand its merchant network and digitize agro-dealers in Kenya.
Key Takeaway
Shamba Pride’s $3.7 million funding will drive the expansion of its merchant network and the digitization of agro-dealers in Kenya, with plans to further scale its operations within the country and explore opportunities in neighboring markets. The company’s focus on empowering agro-dealers and supporting small-scale farmers underscores its commitment to strengthening Kenya’s agriculture sector.
Empowering Agro-Dealers and Small-Scale Farmers
Since its establishment in 2016, Shamba Pride has been dedicated to improving last-mile distribution for farm inputs and addressing price exploitation and quality issues for farmers through its merchant network known as digishops. The company has successfully built a network of 2,700 agro-dealers across 24 counties in Kenya, covering over half of the country. With the new funding, Shamba Pride aims to further scale its operations within Kenya, expand its franchise network, and extend its reach to more retailers and agricultural regions over the next year. Additionally, the company plans to explore opportunities in neighboring markets such as Tanzania, Uganda, and Zambia, which face similar challenges in their farm input supply chains.
Shamba Pride’s CEO, Samuel Munguti, emphasized the company’s commitment to empowering agro-dealers by providing them with the necessary tools and technology for business visibility, professional development, and support for the farmers they serve. The agtech’s efforts also include digitizing agro-dealers to streamline tasks such as business management and inventory ordering, ensuring the availability of essential supplies like fertilizers and seeds to small-scale farmers in rural areas.
Supporting Small-Scale Farmers and Strengthening the Agriculture Sector
Shamba Pride’s initiatives extend to providing farmers with market linkages, Buy Now Pay Later (BNPL) financial services, and training information through its USSD platform. The company primarily targets small-scale farmers who play a significant role in Kenya’s agriculture sector, contributing 33% to the country’s gross domestic product and employing over 40% of the population. With a focus on enhancing day-to-day farming activities, Shamba Pride’s model aims to create additional revenues for farmers and agro-dealers, ultimately contributing to successful women entrepreneurship within the sector.
Building Resilience for Small-Holder Farmers
As part of its strategy, Shamba Pride collaborates with partners such as the French multinational Elephant Verve to source “climate-smart” farm inputs, aligning with its goal to build resilience for small-holder farmers in the face of environmental challenges.
