A Nigerian agritech company specializing in supplying farm grain produce to retailers has secured $3 million in pre-series A funding. The funding will be utilized to expand its order fulfillment centers and enhance its technological infrastructure. Notably, this marks the company’s second funding round in a span of two years.
The funding round was spearheaded by Acumen Resilient Agriculture Fund (ARAF), which contributed $2.5 million. Other participants in the round included Climate Resilient Africa Fund, Marula Square, Plug and Play Tech Centre, and Tekedia Capital. Additionally, Sahel Capital extended $590,000 in debt financing.
Established in 2020 by Riches and Winner Attai along with Chichebem Jibunoh, the company, known as Winich Farms, offers a platform that enables farmers in rural areas to sell their produce to off-takers, such as retailers and informal processors. Through a network of collection points managed by agents, the company efficiently processes orders from off-takers.
For instance, if a retailer requests 50 kilograms of rice through the mobile app, the order is assigned to agents for bidding. These agents mobilize local farmers to bring the produce to the collection points, which is then dispatched to truck drivers for delivery within 24 to 72 hours.
The company emphasizes fair negotiations with farmers, selling their produce to off-takers at slightly marked-up prices. Currently, it charges off-takers ₦720 ($0.43) per kilogram of paddy rice, excluding delivery charges.
Revenue generated is divided into three parts: a share for farmers, another for agents, and the remaining portion for the company.
Winich Farms reports processing monthly orders worth up to ₦3.7 billion ($2.2 million) and has experienced a 300% growth in gross merchandise value (GMV) since 2022, reaching $30 million.
CEO Riches Attai stated, “Our expansion is attributed to the increased number of agents on our platform. By the beginning of [2024], we had surpassed 4,000 agents, a fourfold growth from 2022. This growth in agent numbers enables us to meet demand more efficiently.”
Although the current operational model faces limitations due to the geographical distribution of farmer partners predominantly in northern regions, leading to delays in deliveries to distant states such as Lagos, the company claims to serve over 150,000 users, comprising farmers, agents, and truck drivers.
To address these challenges, Winich Farms plans to establish fulfillment centers. The debt funding will be utilized to lease buildings serving as regional distribution hubs across Nigeria’s six geopolitical zones. These fulfillment centers aim to expedite deliveries to off-takers.
Moreover, the agritech company facilitates access to credit by connecting farmers who have completed a minimum of three supply cycles with financial institution partners for financing. Through a partnership with Sterling Bank, the company issues Verve cards to