Nigerian agritech startup Winich Farms has secured $3 million in pre-Series A funding to further its mission of empowering smallholder farmers and optimising agricultural processes across Nigeria. This injection of capital will be instrumental in enhancing the company’s technology and expanding its reach, ultimately boosting earnings for farmers and improving the efficiency of the agricultural supply chain.
Since its launch in 2020, Winich Farms has rapidly grown to become a vital player in Nigeria’s agricultural landscape. The company has built an impressive ecosystem of over 150,000 users, including farmers, collection point agents, and off-takers. This growth is reflected in its gross merchandise value (GMV), which surged by 300% from $10 million in 2022 to $30 million by the end of 2023.
Winich Farms tackles a critical challenge faced by many smallholder farmers in Nigeria – access to markets and fair prices. Traditionally, farmers have been at the mercy of middlemen who often exploit their lack of market access, resulting in low earnings. Winich Farms disrupts this system by providing a digital platform that connects farmers directly with buyers, eliminating the need for intermediaries and ensuring farmers receive a larger share of the profits.
The platform’s inventory management feature allows farmers to list their produce and manage their stock efficiently. This empowers them to negotiate better prices and sell their produce directly to off-takers such as factories and retailers. Off-takers also benefit from the platform’s streamlined processes, enabling them to manage their stock remotely and source produce directly from farmers.
This latest funding round, a mix of debt and equity, includes $2.5 million in equity from Acumen Resilient Agriculture Fund, Climate Resilient Africa Fund, Marula Square, Plug and Play, and Tekedia Capital. Lagos-based Sahel Capital provided $590,000 in debt funding.
This investment underscores the growing confidence in Winich Farms’ potential to transform the agricultural sector in Nigeria. In June 2024, the company showcased its innovative solutions at GITEX Africa 2024, highlighting its commitment to driving traceability and efficiency in the agricultural supply chain.
Winich Farms faces competition from other players in the agritech space, such as Farmcrowdy and Thrive Agric. However, Winich Farms differentiates itself by focusing on connecting farmers directly with off-takers, effectively cutting out the middleman and ensuring a fairer system for all stakeholders.
With this new funding, Winich Farms is poised to expand its operations, enhance its technology, and reach even more farmers across Nigeria. The company plans to leverage this investment to improve its platform, develop new features, and expand its team. By empowering farmers and streamlining the agricultural supply chain, Winich Farms is playing a crucial role in driving sustainable growth and development in Nigeria’s agricultural sector.
