Nigerian startup Agricorp, which is utilising technology in a bid to become the largest spices exporter on the continent, has raised US$17.5 million in Series A funding to help it increase its production capacity to 7,000 metric tonnes.
Founded in 2018 by Kenneth Obiajulu and Wale Omotimirin, Agricorp has so far supported over 5,000 smallholder farmers with inputs and training on good agronomic practices, and built a 0.5MT/hour spice processing plant in Kaduna that produces value-added products for the export market.
The startup has developed proprietary technology, Farmbase, that registers, aggregates, and pays farmers for produce sold. In a market where farmers are largely undocumented and unbanked, Agricorp collates data that can help provide detailed analysis for stakeholders to make informed agricultural decisions, and also helps with traceability of all farmer activities from the need for farm input to disbursement to sales of products and, eventually, payment. Financial institutions can also use this information to provide loans, credit facilities, and insurance to interested parties.
It is now seeking greater scale and impact, and has therefore raised a US$17.5 million Series A round. The Nigeria-based Vami led the funding round with US$11.5 million in equity, while One Capital LLC and AFEX provided working capital financing for the company.
The funding will be used to expand Agricorp’s spices processing capacity to hit 7,000MT per annum, set up regional sales operations in South Africa and East Africa, acquire certifications for food safety and hygiene, increase staff strength to meet growing demand, and improve marketing efforts.
“We believe that by increasing our capacity to 7,000MT, we will maximise the potential to boost Nigeria’s forex earnings through export, contribute our quota to improving the Nigerian GDP from agriculture, and serve as a worthy model to African youths who aspire to be agribusiness owners. We want to show them it is possible and very rewarding as well,” said Obiajulu, Agricorp’s chief executive officer (CEO).
AgriCorp’s founders raised US$330,000 in seed capital back in 2018 to get the company started, and One Capital has previously invested an undisclosed amount in convertible notes to help it scale operations. The company has also raised several debt notes to meet its working capital requirements for buying raw materials from farmers within its network.