Source: Innovation Village
Since 2016, Shamba Pride has been focusing on improving last-mile distribution for agricultural inputs and addressing issues of price exploitation and quality for farmers through its digishops merchant network.
To date, the agtech company has established a network consisting of 2,700 merchants, spanning 24 counties in Kenya. This represents just slightly over half the country. They now aim to further expand within the country to include more retailers and farming regions in the subsequent year, and eventually extend to nearby markets such as Tanzania, Uganda, and Zambia, which face similar issues regarding farm input supply chains.
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These challenges include sourcing, unpredictable pricing, quality issues, and stockouts.
Their growth within Kenya, including the expansion of their franchise network, will be supported by a $3.7 million pre-series A funding secured from the EU agriculture financing initiative, EDFI AgriFI, and Seedstars Africa Ventures (SAV). This new funding, which includes $1.7 million equity, builds on the $1.1 million capital they raised in 2021 from SAV and Gray Matters Capital.
Shamba Pride uses digital technology to equip agro-dealers, empowering them to manage their businesses and order inventory efficiently. This ensures the constant availability of supplies such as seeds and fertilizers to millions of small-scale farmers in rural regions.
“Rural agricultural distribution is largely maintained by agro-dealers controlling how farmers access inputs, services, and training. Our aim is to empower these dealers by providing them with the necessary tools and technology they need for their businesses, which also aids their professional and commercial growth, as well as providing the right support for farmers,” explained Samuel Munguti, the founder and CEO of Shamba Pride.
Moreover, the agtech offers farmers market linkages, Buy Now Pay Later (BNPL) financial services, and vital training information via its USSD platform.
Shamba Pride primarily targets small-scale farmers, who form a significant part of Kenya’s agricultural sector. This sector contributes to 33% of the nation’s GDP, employs over 40% of the Kenyan population, and over 70% of rural dwellers. The sector also generates 65% of the country’s export earnings, making it a vital economic pillar and a focus for innovators.
“Shamba Pride’s success is pinned on innovations that simplify everyday farming. We’re honoured to support a scalable model that creates extra income for farmers and agro-dealers, and significantly contributes to successful women entrepreneurship,” stated Maxime Bouan, a general partner at SAV.
SAV, a fund that supports startups addressing basic needs like education, healthcare, and utilities, recently received $30 million from the EIB and $10.5 million from the AFDB.
Shamba Pride sources its inventory from partners such as the French multinational Elephant Verve, which supplies “climate-smart” agricultural inputs. This collaboration aligns with Shamba Pride’s aim to build resilience for small-scale farmers.
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Source: Innovation Village
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