Adedapo Adesanya
By Adedapo Adesanya
Seedstars Africa Ventures and EDFI AgriFI, which is the European Union’s financing initiative responsible for investments in medium, small, and micro agri-enterprises (MSME) in developing countries, have announced a $3.7 million pre-series A investment in Shamba Pride, a pioneering Agri-based company in Kenya, to boost quality agricultural input distribution.
The investment arrangement will see EDFI AgriFI provide a long-term loan of $2 million, to foster sustainable development and economic growth in developing countries. Seedstars Africa Ventures on its part, committed an additional $1.7 million in equity, reaffirming its support to the company and catalysing investments into the company from international funds.
The investment aims to support Shamba Pride as it expands current activities in Kenya and develops additional services.
The financing will also enable the company to develop its franchise network and benefit from additional working capital to source agri inputs in bulk, which will increase the impact in rural areas.
As an agri-based SME, Shamba Pride addresses the crucial challenge of providing quality and affordable agricultural inputs, services, and information to smallholders in rural areas. The company has built a platform empowering last-mile agro-dealer shops, or agrovets, with digital services, namely enabling easy online ordering and purchase with weekly doorstep delivery of supplies, reducing out-of-stock situations. This model not only allows the creation of new jobs but also provides access to agricultural inputs for smallholder farmers in remote rural areas at more affordable prices.
Speaking on the deal, Shamba Pride CEO, Mr Samuel Munguti explained: “EDFI AgriFI joined this growth journey through an investment that propels Shamba Pride towards its vision of positively impacting the lives of some 200,000 farmers by the end of 2025.
The company has already grown its outreach by 10x since 2021 to reach over 220 shops, and the additional equity investment from Seedstars Africa Ventures alongside a trusted institutional financial institution is a significant milestone for the company to become a regional champion and a trusted brand for the industry.”
On his part, Mr Rodrigo Madrazo, Chief Executive Officer of EDFI Management Company, stressed the transformative outcome brought by the investment, noting: “Support for Shamba Pride reflects our commitment to empowering entrepreneurship in frontier markets, with a high impact felt in rural areas. By providing appropriate long-term debt alongside additional equity investment, EDFI AgriFI is poised to play a pivotal role in helping scale up Shamba Pride operations.”
“Shamba Pride’s success is based on innovations which facilitate the day-to-day farming activities. We’ve been proud to support a scalable model which creates additional revenues for farmers and agrovets and strongly contributes to successful women entrepreneurship”, noted Mr Maxime Bouan General Partner at Seedstars Africa Ventures, adding that the company would now grow to new heights and scale with larger corporate partnerships.
For Mr Robin Boereboom, AgriFI Senior Investment Officer, EDFI Management Company, added “We’re excited to support a locally grown and innovative digital initiative that is revolutionizing the agri input ecosystem in rural areas, with significant benefits for both agrovets and farmers.”
Ms Yvonne Chileshe, OACPS Expert on Value Chains from ACP Regional Window, expressed optimism, stating: “This investment showcases the need for strategic collaborations and financial support in advancing sustainable agriculture in developing countries.
“Shamba Pride allows the creation of a community of smart micro-entrepreneurs -most of them women and youth-led serving the smallholder farmer community. Thus, the growth of the company aligns with our goals to foster inclusive development.”
