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Twiga Foods closes $50,000,000 Series C round

The funding raised will be used to test Twiga’s proof of concept and accelerate its operation across Africa, boosting the food sector.

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Peter Njonjo, chief executive officer and co-founder, Twiga Foods
Peter Njonjo, chief executive officer and co-founder, Twiga Foods

Kenya-based agritech company, Twiga Foods, has secured a $50,000,000 Series C round to boost its endeavours in ensuring the African food sector thrives.

Twiga Foods is a B2B food distribution company that leverages technology to guarantee a seamless process across the food supply chains including manufacturers and retailers.

The funding follows the company’s previous $30 million Series B round, $23.75 million equity and $6.25 million debt raised in 2019. 

The seven-year-old company asserts to have had over 100,000 customers leverage its services across Kenya while delivering over 600 metric tons of product to 10,000+ retailers daily. 

Twiga’s technology is at the heart of the solution to Africa’s lack of affordable access to food. 

According to the company; “It is estimated that Africans spend up to ten times more of their disposable income on food compared to developed markets. ​This is a problem primarily driven by a highly fragmented and inefficient retail market across the continent, where around 90% of the retail industry consists of small, informal independent retailers.”

Twiga Foods is solving this problem with the use of technology and the ubiquity of mobile phones, combined with modern distribution and logistics to aggregate consumer demand, kick-starting the development of more efficient supply chains. ​

According to Peter Njonjo, chief executive officer and co-founder, Twiga Foods, the company is investing in a proof of concept to develop an alternative strategy for the production of food in Africa and cover both ends of traceability and mass scale. 

The goal is to reduce the price consumers pay for popular domestic plant-based food products by over 30%.The funding raised will be used to test the concept. 

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Twiga also plans to use a fraction of the funding to roll out low-cost manufactured food and non-food products under its brand before the end of the year.

Investors who participated in the funding round include TLcom Capital, IFC Ventures, DOB Equity, and Goldman Sachs’ spinoff Juven. New investors were OP Finnfund Global and Endeavor Catalyst Fund.

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The round also presented a consolidation of Twiga’s cap table where earlier investors got some liquidity via a $30 million secondary sale.

Twiga is currently working with development finance partners to envisage how to scale its proof of concept where it will act as an off-taker to sell horticultural crops from February 2022 across East Africa.

On expansion goals, the company plans to boost operations into Cote d’Ivoire, DRC Congo, Ghana and Nigeria. 

​Joan Aimuengheuwa is a content writer who takes keen interest in the scopes of innovation among African startups. She thrives at meeting targets and expectations. Contact: [email protected]

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