The raise was also backed with investment from the IDH Farmfit Fund, a blended finance impact fund, marking a significant step in developing institutional capital markets for rural lending.

This first-of-its-kind securitisation in Kenya demonstrates how structured credit markets can channel institutional capital toward smallholder finance.

The milestone transaction involved the securitisation of smallholder farmer credit for inputs with a value of KES 370 million, mobilising KES 276 million (approximately USD 2.1 million) in financing through the sale of these receivables, originated by Apollo Agriculture and covering a portfolio of 23,839 smallholder farmers, 51% of whom are women and approximately 22% first-time borrowers.

The issuance was supported by an investment grade rating of BBB- from Agusto, marking a significant milestone in demonstrating the credit quality and investability of this asset class.

Structured through Kaleidofin’s ki platform, a dedicated debt capital market infrastructure, the transaction enables the conversion of granular agricultural loans into investable assets for institutional investors in local currency.

Unlike traditional models that rely on rigid standardisation, the platform supports customised structuring of portfolios and risk segmentation, powered by Kaleidofin’s proprietary ki score, an AI-driven risk intelligence layer built on loan transaction, bureau and alternative data.

The structure allows originators such as Apollo Agriculture to recycle capital efficiently while aligning financing to seasonal agricultural cycles, and provides investors with improved visibility into underlying asset risk, helping reduce information asymmetry in an otherwise opaque segment.

For Apollo Agriculture, the transaction releases immediate liquidity and improves capital efficiency, enabling continued expansion of financing to smallholder farmers without increasing balance sheet leverage. In practical terms, this means Apollo can extend more loans to smallholder farmers, helping them access the seeds, fertilisers and tools they need to grow more crops and improve their livelihoods. This is made possible by Apollo’s unique credit tech stack, which allows the company to build accurate, real-time credit profiles for farmers and underwrite customers typically excluded from formal finance.

Apollo’s platform combines satellite imagery of farm plots, machine learning models trained on agricultural yield patterns, and mobile-based data collection to assess creditworthiness in real time, without requiring the collateral or credit history that traditional lenders demand.

“This transaction demonstrates how innovative financial structures can unlock capital for smallholder farmers at scale,” said Roel Messie, CEO of IDH Investment Management, manager of the IDH Farmfit Fund. “Building investable opportunities in agriculture requires both capital and enabling infrastructure, and this partnership brings those elements together.”

“We designed the Kaleidofin platform to function as scalable market infrastructure for traditionally excluded customer segments such as smallholder farmers, women entrepreneurs, clean energy and small business,” said Sucharita Mukherjee, co-founder and CEO of Kaleidofin. “By enabling customised structuring and data-driven risk insights via ki score, we are building the foundations for institutional capital to flow into sectors such as smallholder agriculture in a sustainable way.”

The transaction is expected to serve as a blueprint for similar structures across emerging markets, demonstrating how technology-enabled infrastructure and blended finance can expand access to capital for underserved borrowers while creating investable opportunities for institutional investors.

“This is a meaningful step in building efficient, scalable funding for smallholder agriculture and validates our tech-enabled business model.” said Eli Pollak, CEO of Apollo Agriculture.

“By converting receivables into working capital, we are able to lower our cost of funds and expand access to affordable, local currency financing for farmers.” Financing in local currency is critical for farmers, as it protects them from the foreign exchange volatility that can dramatically increase debt repayment burdens. A lower cost of funds means Apollo can offer more affordable loan terms, reducing the financial pressure on farmers and making it more likely they can repay, reinvest in their farms, and build long-term financial resilience,” Pollak added.

The IDH Farmfit Fund acted as anchor investor in the transaction, which represents the first step in a broader multi-year securitisation programme expected to mobilise approximately KES 2.37 billion and reach more than 130,000 farmers over time.

The transaction was supported by a broader ecosystem of partners working to develop the enabling environment for structured finance in agriculture. UK-funded specialist development agency, FSD Africa provided support across legal and regulatory structuring, investor engagement, and market development, while the UK’s flagship public markets programme, MOBILIST, contributed to tax and structuring guidance.

“This transaction showcases how well-functioning market infrastructure can catalyse institutional capital for sectors traditionally considered high-risk, like smallholder agriculture. FSD Africa’s role has been to help build the foundations, from regulatory clarity to investor confidence, that make transactions like this viable and repeatable. We see this as a blueprint for how structured finance can unlock sustainable, large-scale funding for inclusive growth across Africa,” said Dr. Evans Osano, chief financial markets Officer at FSD Africa.

“By supporting FSDA to demonstrate and enable innovation like this, we aim to make it more efficient to mobilize domestic sources of capital for women’s economic empowerment,” said Mark Wensley, Senior Program Officer at the Gates Foundation.

British International Investment (BII), the UK’s development finance institution and impact investor, provided technical assistance to its investee Apollo Agriculture through BII Plus.

The foundational funding strengthens its reporting and technology capabilities, enabling access to a scalable, KES-denominated funding model that significantly reduces FX risk while achieving a more efficient and sustainable cost of capital for its growing loan portfolio.

Most farmers encounter challenges in scaling and growing to achieve their targets due to limitations in several aspects such as financing, accessibility, among others, and beautifully, Agritech startups are on a fast rise to tackle these challenges.

Some of these companies include Releaf, Farmcrowdy, Vendease, Zowasel, Voriancorelli, Skudu, Khula, Agrocenta, Apollo Agriculture and Complete Farmer.

1. Releaf

Releaf’s hardware and software solutions enable farmers and food factories become more efficient. Last year, the Nigeria-based agritech startup raised $2,700,000 in a seed round led by Samurai Incubate Africa, Future Africa and Consonance Investment Managers.

One of its hardware products is Kraken, used to crack nuts and crush kernels into vegetable oil which are sold to FMCG processors and local manufacturers. The company also supplied high-quality raw materials and crops with sustainability at the core of its focus.

2. Farmcrowdy

Another Nigerian agritech startup, Farmcrowdy was founded in November 2016 and has grown to become the country’s leading Agritech company that connects smallholder farmers to DFIs provided by government agencies, access to market, and processed food.

In November 2020 when it clocked four, Farmcrowdy re-invented itself by launching;

1. Farmcrowdy Structured Finance,
2. Farmcrowdy Insurance,
3. Farmcrowdy Marketing,
4. Farmcrowdy Tech and Data,
5. Farmcrowdy Foods and
6. Farmcrowdy Aggregation.

These businesses were set up to serve all individuals across the entire agriculture value chain prioritizing stakeholder access to better yields, lower costs, and smarter marketing.

Farmcrowdy is backed by Techstars, GSMA Ecosystem Accelerator, FC Agro Allied SPV, Cox Enterprises, Social Capital, and several other investors.

3. Vendease

Also based in Nigeria, Vendease raised $3,200,000 in seed funding to expand operations and scale across the continent last year. The company digitises Africa’s food supply chain, with restaurants as its primary target audience and has a transaction volume of over $13,000,000.

Backed by YCombinator, Global Founders Capital, Hack VC, Soma Capital, and others, Vendease is patronised by businesses such as Dodo Pizza, Genesis restaurant, Eden, Fishermans Daughter, to mention a few. The company allows users to manage inventories, track expenses, and access its buy-now-pay-later system, making business more seamless. 

4. Zowasel

Online sustainable marketplace for crops, Zowasel has created a peer-to-peer marketplace for farmers and buyers of agricultural produce to carry out transactions.

Based in Nigeria, the company’s platform provides quality crop testing and all-day working capital for growers and effortless crop sourcing for buyers, thereby connecting with the network of top vetted buyers to earn more for the crops.

With a total funding amount of $100,000, Zowasel is backed by Guinness Nigeria, Promasidor, MassChallenge Switzerland, SAIS, among others.

5. Voriancorelli

Voriancorelli bridges the gap between agribusinesses and the capital required for them to scale. The company offers agricultural commodities aggregation solutions to key players in the sector, such as buyers, sellers, commodity aggregators, logistics partners, financiers and food processors, by connecting them together digitally, thereby facilitating seamless transactions and ensuring the economic wellbeing of all stakeholders.

Voriancorelli is the first company that was screened for listing on the Lagos Commodities and Futures Exchange (LCFE).

6. Skudu

South Africa’s Skudu leverages technology to enhance efficiency within the agricultural value chain, ultimately benefiting all stakeholders involved via its method of merging deep farming know-how with cloud computing.

Last year, the agritech startup raised an undisclosed funding amount from one of Africa’s leading agri-food investors, AgVentures, to scale its online marketplace for agricultural inputs and produce, as well as its approaches in interpreting soil sample results, keeping track of farms and providing management tools, all targeted at enabling farmers to significantly lower input costs and protect the environment by optimising fertilizer application globally.

7. Khula

Another South African-based agritech startup, Khula connects subsistence and commercial farmers to agricultural supply and marketplaces. Last year, the company raised $1,300,000 from AECI, an SA agrochemical company and E Squared Investments.

Khula has a range of products such as the KHULA! Inputs app, Fresh Produce Marketplace and Funder Dashboard, which enables a hiccup-free process between local and international farmers, suppliers, wholesalers, retailers and other stakeholders.

8. Agrocenta

Ghana’s Agrocenta is solving the limited accessibility to markets for smallholder farmers in the rural areas, which brings about exploitation, purchase from middlemen and lack of a coordinated truck delivery system to cart commodities directly from farms to markets to sell.

Its $2,200,000 total funding amount was raised from investors such as Foreign & Commonwealth Office – UK, AV Ventures, Rabo Foundation, Shell Foundation, GSMA Ecosystem Accelerator and Seedstars.

9. Apollo Agriculture 

Based in Kenya, Apollo Agriculture helps small-scale farmers maximise profit. Via due diligence, the company builds credit profiles for these farmers leveraging a machine learning model so as to build automated digital processes that make their lives better.

Servicing over 40,000 farmers in Kenya, Apollo Agriculture has a total funding amount of $12,200,000 raised from Agri-Business Capital Fund (ABC Fund), Anthemis Group, Leaps by Bayer, Flourish Ventures, Accion Venture Lab, Mastercard Foundation Fund for Rural Prosperity, Rabobank, FMO and Musha Ventures.

10. Complete Farmer 

Ghana’s Complete Farmer is focused on food security, promoting nutritious eating, monitoring farming processes, and providing education and training to grow food precisely in order to meet industry specifications and quality. 

The end-to-end digital farming platform, which enables clients to gain competitive advantage across various agriculture value chains, raised an undisclosed funding amount from Ingressive Capital.