Definitely, food is a daily essential in everyone’s life. We could say this is a reason for its prosperity, but including innovation in food production and processes is an accelerator.
How beautiful is it to have your cravings or needs served to you at your convenience? Startups have made this possible with several innovative ideas. What business would not make it when they hit the exact need of the general public?
Are these the reasons for the boost? Well, let’s find out. The FoodTech Sector in Nigeria is quite interesting today, having been recognized as the major sector stimulating Nigeria’s economic growth, locally and globally, by the recently released StartupBlink report.
The report revealed that Lagos, the Nigerian city with the most promising startup ecosystem and the reason for the country’s heave, was ranked 24th globally in the FoodTech industry.
“Lagos’ achievement in Foodtech should be celebrated, because Lagos is the only African city to reach the global top 30 for any of the 11 industries.”
Interesting Facts in Nigeria’s Food Industry According to Statistica
- Revenue in the Food market amounts to US$213.50bn in 2022. The market is expected to grow annually by 5.60% (CAGR 2022-2027).
- The market’s largest segment is the segment Confectionery & Snacks with a market volume of US$48.59bn in 2022.
- In relation to total population figures, per person revenues of US$984.80 are generated in 2022.
- In the Food market, volume is expected to amount to 36,550.9mkg by 2027.
- The average volume per person in the Food market is expected to amount to 181.1kg in 2022.
Older research found that Nigeria’s processed food industry was valued at $20 billion annually in 2012, expected to grow by several tens of billions of dollars by 2050.
Food and Technology
Several startups have leveraged innovations to create sustainable and inclusive mediums to ensure food processes are seamless. Not limited to these, here are some solutions that have contributed to the sector’s growth and recognition:
- Creating food distribution networks and infrastructure
- Packaging, speed and efficiency
- Mobile apps for trade and inventory tracking
- Connecting farmers to vendors and even end-users at affordable rates
- Providing finance to farmers and retailers
- Reducing energy consumption
We cannot leave out the food delivery apps and other logistics without which FoodTech would be limited. There is a chain of people and groups working tirelessly to promote the sector; all cannot be mentioned because the list is long, but some can.
The activities of these startups have attracted Venture Capitalists, organizations and individuals who invest and trust that the sector would thrive beyond its current state.
- Orda
- Jise
- Jumia Foods
- Star Kitchens Group
- OurEdenlife
- Yaaga
- MobileCooks
- FoodBooking
- GofoodNG
- Delicioso Mobile Chefs
- Buyfood Africa
- Hellofood
- Chopnownow
- Agricorp International
- Releaf
- Vendease
- OliliFood
- ThriveAgric
- Hello Tractor
- Groupfarma
Highlighting a few randomly
Orda raised $1.1 million in January this year to expand operations. The round included VCs and Angels such as Microtraction, DFS Labs, Oxford Seed Fund, Enza Capital, Agrolay Advisors, Techstars Boulder, Magic Fund, Hustle Fund, Norrsken Foundation, and angel investors like Ire Aderinokun, Jesse Ovia and Ademola Adesina.
Last year, Jise attracted Angel investors such as Backroom Capital; Nigeria, Winston Capital; Ireland, Jonny Enagwolor, Co-Founder Treepz Inc and others. The company raised $100,000 to provide faster and more affordable food delivery service.
Agricorp International
Utilizing its proprietary technology, Farmbase, to create detailed profiles and financial flow for farmers by registering, aggregating, and paying them for their produce, Agricorp raised $17.5 million in pre-series A funding from Vami Farms, One Capital, AFEX and others.
Releaf
Releaf raised $4.2 million in seed funding and grants to scale food processing solutions last year. This was led by Samurai Incubate Africa, Future Africa and Consonance Investment Managers with participation from Stephen Pagliuca, Chairman of Bain Capital, Justin Kan of Twitch, Challenge Fund for Youth Employment (CFYE) and USAID.
Vendease
Backed by Y Combinator, Global Founders Capital, Hustle Fund, Liquid 2 Ventures, Hack VC, and Soma Capital, Vendease connects restaurants and food businesses directly to farmers and manufacturers. The startup recently raised $3.2 million.
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