Onyeka Akumah Steps Down As CEO Of Farmcrowdy
Onyeka Akumah steps down as CEO of Farmcrowdy; co-founder Akindele Phillips assumes the role
Farmcrowdy, a Nigerian Agritech startup, has announced the departure of its CEO, Onyeka Akumah, who will take over as chairman of the Farmcrowdy board. Akindele Phillips, the company's co-founder and Chief Risk Officer (CRO), will carry on the vision.
Akumah reveals that he will step away from active Farmcrowdy management in order to focus entirely on his other venture, Nigerian mobility startup Plentywaka. Akindele will then be tasked with the responsibility of continuing the company's vision of deepening technology in Nigeria's agricultural sector.
Farmcrowdy was founded in 2016 by Onyeka Akumah, Akindele Phillips, Temitope Omotolani, Christopher Abiodun, and Ifeanyi Anazodo with the goal of financing small-scale farmers throughout Nigeria.
Since then, Akumah has guided the company through significant milestones, including closing $2.4 million in equity investments, raising $20 million for its network of over 440k farmers, acquiring Best Foods, and acquiring Crowdyvest, a company it piloted in 2019.
“We considered raising money initially, but put it on hold for the time being because we earned a significant profit from the sale of Crowdyvest.
According to Akumah, the transition will be gradual, and he will be available to assist the new CEO as needed.
Meet Akindele Phillips
Phillips, who will lead one of Nigeria's most prominent startups, will draw on his experience as a risk officer at some of the world's most reputable companies.
Phillips earned a Bsc in Accounting from Obafemi Awolowo University (OAU) in 2009 and worked at Zenith Bank as a Credit Risk Officer.
He then spent three years as a Senior Audit Associate at KPMG, a Big Four consulting firm, between 2010 and 2013.
Phillips flexed his entrepreneurial muscles prior to co-founding Farmcrowdy with Akumah as a Strategy Director with logistics company Philandmove and as Managing Partner of financial consulting firm Porter's World Consult.
“My experience with risk and audit in such reputable companies and even here at Farmcrowdy will undoubtedly be beneficial, as business, particularly one as risky as ours, entails significant risk,” Phillips says.
Phillips says that in light of the company's evolution over the years, his plan is to amplify the work already being done at the company.
What does the business look like?
Following a conversation with Techpoint Africa in November 2020, Farmcrowdy has completed its transition from a consumer-facing platform (B2C) to a business-to-business (B2B) and business-to-government (B2G) model with its crowdfunding platform.
Rather than crowdsourcing funding from various individuals and subjecting farmers to interest rates of up to 20% to 30%, Phillips reveals that the company is collaborating with Development Finance Institutions (DFIs) to provide financing to farmers across Nigeria.
“These institutions' loan interest rates are typically in the single digits, which provides farmers with additional capital to operate their businesses fully,” Phillips explains.
The company is also collaborating with the Nigerian Central Bank, and both Akumah and Phillips attest that the banking regulator has been extremely supportive of the company's efforts and has partnered on several projects.
A possible expansion
Akumah also reveals that the company has hired a Country Manager to assist with its expansion into East Africa, but does not specify which country.
“We're also on the lookout for a Country Manager in the Caribbeans, as that's another region we're considering expanding into,” he adds.
What’s next for Akumah?
Akumah explains that he will continue to focus on three sectors: agriculture, transportation, and real estate.
Akumah is currently the CEO of Techstars-backed Plentywaka and may be looking to further expand his entrepreneurial tentacles.
