By Sodeinde Temidayo David
Nigerian-based spices producing, processing and exporting company, Agricorp International, has raised $17.5 million, about N7.2 billion in Series A funding to increase its processing capacity up to 7,000 metric tonnes.
According to the firm, this was in a bid to build processes to enhance global food systems, as it will become the largest spices export startup in Africa.
As stocks are been shared out from the firm for the first time, the fund was raised from Vami Nigeria, One Capital LLC and AFEX Nigeria.
Nigerian-based Vami led the funding round with $11.5 million, around N4.7 billion in equity, while the other investors provided working capital financing for the company.
Professional service provider, Ernst & Young Nigeria, served as transaction advisers while Elisio Law Office and Pavestone Legal served as legal advisers.
Agricorp is set to contribute to meet the growing demand for spices as an export material.
Data from the Federal Ministry of Agriculture shows that despite being the third highest exporter of ginger globally, Nigeria’s ginger production is put at 31 million metric tons, while demand is put at 65 million metric tons, leaving a gap of 34 million metric tons.
This makes Nigeria accounts for more than 16 per cent of the global production of ginger, which gets less than 4 per cent of the export market share.
In his remarks, the Chief Executive Officer of Agricorp, Mr Kenneth Obiajulu, stated that increasing the company’s capacity to 7,000 metric tons will maximise the potentials to boost Nigeria’s forex earnings through export, contribute our quota to improving the Nigerian Gross Domestic Product (GDP) from agriculture, and serve as a worthy model to African youths who aspire to be agribusiness owners.
Mr Obiajulu added that the firm aims to show the public that agribusiness is possible and very rewarding as well.
Commenting on the funding, the lead investor, Vami Nigeria, added that the investment was made as the group foresees a clear growth path, strong social impact, excellent financial trajectory, and global collaborations with key partners, adding that the depth of knowledge, passion, and resilience of the team is unrivalled.
On his part, the Managing Director of AFEX, Mr Samirah Ade-Adebiyi, said his firm was committed to providing the working capital they require to scale operations at any level.
“Our other businesses have transacted with Agricorp on several occasions and have seen the business grow over time,” he added.
Agricorp aims to be that bold company to take a bold approach to put Nigeria on the global export radar by leveraging investments to build simple processing systems for spices and other agro products.
