Grace Ashiru
Shamba Pride, an agtech firm founded in 2016, recently secured a $3.7 million pre-series A funding in a debt-equity mix to enhance its last-mile distribution network for farm inputs in Kenya. This investment round was led by the EDFI AgriFI, an EU agriculture financing initiative, and Seedstars Africa Ventures (SAV), combining $1.7 million in equity. This follows a previous investment of $1.1 million in 2021 from SAV and Gray Matters Capital.
With a growing network of over 2,700 merchants, known as digishops, Shamba Pride has established its presence in 24 counties across Kenya, representing over half of the country. The new funding aims to expand Shamba Pride’s operations within Kenya, including growing its franchise network. The company also plans to tackle challenges in the farm input supply chain, such as sourcing difficulties, fluctuating prices, quality issues, and frequent stockouts, with an eye on entering nearby markets like Tanzania, Uganda, and Zambia.
Shamba Pride has revolutionized the agricultural sector by digitizing agro-dealers, providing them with advanced tools for managing their businesses and streamlining inventory orders. This transformation ensures a steady supply of essential farming inputs, like seeds and fertilizers, to countless small-scale farmers in remote areas. The agtech company is committed to enhancing the visibility, professional growth, and support of agro-dealers, who are crucial in the agricultural distribution network. Shamba Pride’s significant contribution is evident in the agriculture sector, which accounts for 33% of Kenya’s GDP and employs over 40% of its workforce, predominantly in rural regions.
Why the Investors Invested
EDFI AgriFI and SAV’s investment of $3.7 million in Shamba Pride is influenced by the agtech’s significant contributions and its capacity to tackle key issues in agriculture. SAV’s role as a sector-agnostic fund, with a focus on startups that cater to fundamental needs and improve goods and services, highlights its strategic congruence with the objectives of Shamba Pride.
Shamba Pride has achieved success by enabling agro-dealers with digital tools, enhancing their professional and commercial growth. This agtech t company’s approach not only streamlines daily farming operations but also generates extra income for both farmers and agrovets. This has been particularly beneficial for women entrepreneurs in the field. Investors have taken note of the scalability of Shamba Pride’s business model and its capacity to effect meaningful improvements in the agricultural value chain. This includes tackling issues related to the accessibility, quality, and provision of financial services to farmers.
A Look at Shamba Pride
Established in 2016, Shamba Pride is dedicated to improving the distribution of farm inputs to the last mile, tackling issues of price exploitation, and ensuring quality for Kenyan farmers. This agricultural technology company has successfully established a network of 2,700 merchants across 24 counties in Kenya, effectively serving more than half of the country. Shamba Pride primarily serves small-scale farmers in the agricultural sector, which represents 33% of Kenya’s GDP, and provides employment to over 40% of the workforce, mainly in rural areas.
Shamba Pride is revolutionizing agricultural distribution by digitizing agro-dealers, equipping them with essential tools for managing their business and ordering inventory. This digital transformation ensures that crucial resources, such as seeds and fertilizers, are readily available to countless small-scale farmers in rural regions. The company’s dedication also encompasses providing market connections, offering Buy Now Pay Later (BNPL) financial options, and delivering training through its USSD platform. Shamba Pride collaborates with multinational partners like Elephant Verve, emphasizing ‘climate-smart’ agricultural inputs to enhance the resilience of small-holder farmers. The effective implementation of these strategies firmly establishes Shamba Pride as a significant contributor to the growth and modernization of the agricultural sector.
