Reelfruit Raises $3 Million In A Series A Grant
Reelfruit raises $3 million in a series A grant
Agricultural technology startup Reelfruit in Nigeria has announced a $3 million Series A funding round, which will be used to build a new factory and expand its production capacity.
Alitheia IDF took the initiative in this round. Samata Capital and Flying Doctor Healthcare Investment Company were among the other investors who contributed to the funding round.
The dried fruit snack company announced that it would increase its production by fivefold while also doubling its exports to the United States and other international markets.
Reelfruit, founded in 2012 by Affiong Williams, manufactures a variety of healthy dried fruit and nut snacks that are sold in schools, hotels, and retail supermarkets across the country. Affiong Williams is the company's CEO.
Apart from the local market, the startup also exports its products to countries in West Africa and other parts of the world. Product ingredients include mangoes, coconuts, and cashews, among other tropical fruits. According to Affiong, the startup aspires to demonstrate that Nigerian products can be manufactured to international standards and sold anywhere in the world.
The CEO funded the company's inception with her own savings and a little assistance from her family. Revenues at the company more than doubled between 2014 and 2018, increasing by approximately 750 percent. Reelfruit is Affiong's first foray into the Nigerian agribusiness space, which she believes has enormous potential in terms of wealth creation and employment opportunities.
As a result of the support of IDH Sustainable Trade, Reelfruit began operating its pilot mango farm on 14 acres in 2016, where it employs and trains women in the high-value mango production industry. In 2020, Reelfruit was awarded $50,000 in funding from the village capital accelerator program.
Its preservation model, in addition to providing nutritive foods, ensures that wastage of perishable agricultural products is reduced to an extremely low level. Affiong, the company's CEO, believes her company has the potential to increase the income of farmers while also creating hundreds of jobs for Nigerian citizens.
Plans for future growth
Reelfruit intends to acquire a new factory in Ogun State as part of its expansion plans, with the goal of increasing its monthly dried fruit production from its current 6 metric tonnes to 30 metric tonnes.
This will also entail the hiring of up to 200 additional employees to keep up with the increasing demand for new products as the brand continues to supply the local and international markets with cutting-edge innovations.
This funding will also allow the company to strengthen its existing relationship with Nigerian fruit farmers by establishing an agri-extension service for 250 mango and pineapple producers in the country, as part of its overall strategy. The company claims that this program will help farmers increase their fruit yields while also ensuring a consistent supply of high-quality raw materials to the factory.
Nigerian agritech startups have recently benefited from venture capital funding. With $4.2 million in funding, Releaf, a Nigerian agricultural technology startup that processes palm nuts to produce vegetable oil using a proprietary machine known as the Kraken, has expanded its product line.
The funds would be used to expand the startup's product offering by developing new technology that would be made available to smallholder farmers in the future. It also hopes to provide working capital to farmers in order to aid in the improvement of their production rates and, consequently, their incomes over time.
"We believe there is a tremendous opportunity to increase the productivity of these communities by bringing both physical technology and financial services to them." In fact, it's kind of at the heart of our thesis," Releaf CEO Ikenna Nzewi explained.
