Kenya’s Shamba Pride, an agritech platform revolutionising rural farm supply chains, has secured $3.7 million in pre-Series A funding to scale its network of “digishops” across the country and beyond.
EDFI AgriFI and Seedstars Africa Ventures (SAV) led the investment for Shamba Pride, which aims to empower last-mile agro-dealers and connect them with smallholder farmers, boosting both business sustainability and food security in Sub-Saharan Africa.
The funding, including $1.7 million in equity, comes on the heels of a $1.1 million capital raised in 2021 from SAV and Gray Matters Capital. Shamba Pride’s innovative approach focuses on digitising agro-dealers, providing tools for business management and inventory ordering, and ensuring a smooth supply of fertilizers and seeds to small-scale farmers in rural areas.
Shamba Pride addresses a critical challenge faced by millions of smallholder farmers in Africa: limited access to quality farm inputs, reliable information, and fair pricing. These farmers, who constitute the backbone of the continent’s food production, often rely on informal, exploitative channels, leading to low productivity and income.
“Agriculture distribution in rural communities is heavily controlled by agro-dealers who decide how farmers access inputs, services, and training. The company is therefore empowering these agro-dealers by giving them the right tools and technology for visibility of their businesses, for their professional and commercial development, and the right support for farmers around them,” shared Samuel Munguti, the founder and CEO of Shamba Pride.
Shamba Pride’s “digishop” model tackles this issue by digitising existing agro-dealers, also known as “agrovets.” These local shops are equipped with the tools and technology they need to manage their businesses effectively, order inventory seamlessly, and provide farmers with quality products and services at fair prices.
Beyond digitising agro-dealers, the agtech’s platform also facilitates market linkages for farmers, offers Buy Now Pay Later (BNPL) financial services, and provides training information through its USSD platform. Shamba Pride primarily targets small-scale farmers in Kenya’s agriculture sector, a key contributor to the country’s GDP, employing over 40% of the population and more than 70% in rural settings.
Maxime Bouan, a general partner at SAV, expressed pride in supporting Shamba Pride’s scalable model, emphasising its positive impact on farmers, agro-dealers, and women entrepreneurship. With a focus on innovation and resilience-building, Shamba Pride sources inventory from partners like French multinational Elephant Verve, supplying “climate-smart” farm inputs to fortify small-holder farmers against climatic challenges.
Shamba Pride provides agro-dealers with comprehensive business management tools, including inventory management systems, financial tracking tools, and data analytics. This access empowers agro-dealers to enhance operational efficiency and profitability, contributing to the overall growth of their businesses.
Farmers utilising the Shamba Pride platform benefit from the expanded range of high-quality, “climate-smart” farm inputs available through their local digishops. This improves the quality of inputs accessible to farmers and contributes to increased yields and resilience in the face of unpredictable climatic conditions.
Since 2016, the agritech platform has built a network of over 2,700 digishops across 24 Kenyan counties, reaching over 50% of the country’s agricultural retailers.
With the new funding, Shamba Pride envisions a strategic expansion plan, aiming to extend its network to cover all agricultural regions and retailers throughout Kenya within the coming year. This ambitious goal reflects the company’s commitment to providing comprehensive support and services to a broader spectrum of stakeholders in the Kenyan agricultural sector.
Beyond the borders of Kenya, Shamba Pride is set to explore new markets, considering expansion into neighbouring countries such as Tanzania, Uganda, and Zambia. These countries share similar challenges in farm input distribution, and Shamba Pride seeks to leverage its successful model to address these challenges and contribute to the growth of sustainable agriculture across borders.
In addition to geographical expansion, Shamba Pride places a special emphasis on fostering the success of women entrepreneurs. Recognising that rural women constitute a significant portion of the agro-dealer workforce, the platform actively promotes and supports their entrepreneurial endeavours. In targeting and empowering women in rural areas, Shamba Pride aims to contribute to gender inclusivity and economic empowerment within the agricultural sector. The company’s vision extends beyond geographic boundaries, focusing on creating positive impact and opportunities for diverse communities within the agricultural value chain.
Shamba Pride’s approach represents a promising step towards a more equitable and efficient agricultural ecosystem in Africa. As the company empowers agro-dealers, it unlocks access to vital resources for millions of smallholder farmers, boosting their productivity, income, and resilience. This, in turn, contributes to food security, rural development, and economic growth across the continent.
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