Nigerian Agritech startup, Winich Farms secures $3 million in pre-series A funding
Winich Farms, a Nigerian Agritech startup focused on optimising agricultural processes for stakeholders in the agro sector has recently announced it has secured $3 million in its recent pre-series A funding round to improve its technology and optimise its operation.
The facility which is a mix of equity and debt includes a $2.5 million equity from a host of investors; Acumen Resilient Agriculture Fund, Climate Resilient Africa Fund, Marula Square, Plug and Play, and Tekidia Capita with $590,000 debt from Lagos-based Sahel Capital.
Since the company’s launch in 2020, Winich Farms has built an ecosystem of more than 150,000 users including farmers, and collection point agents, with the company's gross merchandise volume (GMV) increasing by 300%, rising from $10 million in 2022 to $30 million by the end of the 2023 financial year.
The company helps farmers sell their produce through an inventory management feature, instead of leaving them at the mercy of middlemen or the need to wait for traditional market days. Off-takers can also manage their stocks remotely, simplifying trade processes between farmers and buyers.
Farmers can deliver their produce to the nearest collection point and receive payment within 48 hours. The produce is then gathered and sent to off-takers. The company uses geo-zone technology to ensure the order arrives at collection points closest to off-takers.
The company also aids small-scale farmers with low or no access to funding to build their creditworthiness by tracking and ranking their earnings over time and connecting them to its financial institution partners. It recently launched a farmers' debit card in collaboration with Sterling Bank allowing farmers to save their funds in the bank pending when they need access to said funds.
Richies Attai, CEO and co-founder, remarked that Winich aims to improve the lives of farmers and retailers rather than just pursue profit. He noted that the funding will enhance their technology and help farmers access inclusive financial services to boost productivity and support expansion.
“For us, Winich is more than just a profit-oriented business, but a cause at heart improving the lives of smallholder farmers, informal processors and retailers who put food on our tables daily but have been largely marginalized," Attai said.
"This funding is strategic towards further enhancing our technology infrastructure making it more user-friendly while advancing our data-driven approach in enhancing the farmers' ability to access financially inclusive services like credit and insurance to increase productivity while scaling operations to accommodate our expansion plans”
Commenting on the partnership, Sherief Kesseba, Partner at Climate Resilient Africa Fund (CRAF) warmly welcomed Winich to their portfolio, highlighting that the company connects smallholder Nigerian farmers to crucial resources like finance and end-markets.
"With a tech-enabled, Capex-light model driving efficient growth, we believe Winich will generate growth and enhance climate resilience for farmers," Kesseba said.
Other investors including Biola Alabi, partner at Acacia Farms and Tamer El-Raghy, managing director of Acumen Resilient Agriculture Fund (ARAF) shared optimistic expectations for Winich Farms, citing it as a top investment opportunity which could successfully address the 'middlemen problem' by delivering value to both consumers and smallholder farmers in the sector.