Kenyan Agtech Shamba Pride Secures $3.7M Funding to Expand Merchant Network

Since its establishment in 2016, Shamba Pride has been dedicated to improving last-mile distribution of farm inputs and addressing issues related to price exploitation and quality for farmers through its network of merchants known as digishops.

Expanding Merchant Network

Shamba Pride has successfully established a network of 2,700 merchants, also known as agro-dealers, spanning across 24 counties in Kenya, covering over half of the country. The company now aims to expand its presence further within Kenya over the next year, reaching more retailers and agricultural regions. Additionally, it plans to explore opportunities in neighboring markets such as Tanzania, Uganda, and Zambia, where similar challenges in the farm input supply chain persist, including sourcing, price fluctuations, quality concerns, and stockouts.

Funding for Growth

To support its expansion efforts, Shamba Pride has secured a $3.7 million debt-equity pre-Series A funding. The funding round was led by the EU agriculture financing initiative EDFI AgriFI and Seedstars Africa Ventures (SAV). Of this amount, $1.7 million is allocated for equity investment. This funding follows a previous capital raise of $1.1 million in 2021 from SAV and Gray Matters Capital.

Empowering Agro-Dealers and Farmers

Shamba Pride leverages digital tools to empower agro-dealers, enabling them to manage their businesses efficiently and streamline inventory ordering processes. This ensures the availability of essential supplies such as fertilizers and seeds to millions of small-scale farmers in rural areas. Samuel Munguti, the founder and CEO of Shamba Pride, emphasized the importance of empowering agro-dealers with the right technology to enhance visibility, professional development, and support for farmers.

Focus on Small-Scale Farmers

Targeting small-scale farmers, who play a significant role in Kenya’s agriculture sector, Shamba Pride aims to contribute to the sector’s growth. With agriculture contributing 33% of Kenya’s gross domestic product and employing over 40% of the population, the sector is crucial for the country’s economy. Shamba Pride provides market linkages, Buy Now Pay Later (BNPL) financial services, and training information to farmers through its USSD platform.

Partnerships and Innovation

Shamba Pride collaborates with partners such as French multinational Elephant Verve to source inventory, including “climate-smart” farm inputs. These partnerships are aligned with Shamba Pride’s strategy to build resilience for small-holder farmers and introduce innovative solutions to address farming challenges.

The recent funding injection will enable Shamba Pride to strengthen its merchant network, enhance its technological capabilities, and further support the agricultural ecosystem in Kenya and beyond.

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