Twiga, A Kenyan Foodtech Company, Secures $50 Million In Funding To Expand Access To Fresh Farm Produce
Twiga, a Kenyan foodtech company, secures $50 million in funding to expand access to fresh farm produce
Kenyan agricultural technology company Twiga has raised $50 million in a Series C round of funding to expand its operations in the country and neighboring countries. Twiga was founded in 2011 and is headquartered in Nairobi. Previous rounds of funding have totaled $30 million in a Series B round and $10.3 million in a Series A round, respectively. The company Twiga has raised more than $100 million in debt and equity financing rounds, according to Crunchbase's database.
A group of investors led by Creadev participated in the round, which also included TLcom Capital, IFC Ventures, DOB Equity, and Juven, a Goldman Sachs spinoff. Additionally, the fund received investments from OP Finnfund Global and Endeavor Catalyst Fund.
Twiga, founded in 2014 by Peter Njonjo and Grant Brooke, who has since stepped down, uses technology to help companies in the food and retail distribution industries build supply chains.
In order to streamline the supply chain between fresh food producers, FMCG manufacturers, and retailers, Twiga has developed a business-to-business e-commerce platform. Consumers benefit from this because it eliminates the need for numerous intermediaries, resulting in a significant reduction in the cost of food for them.
During a press conference to announce the investment, Creadev's Africa director, Pierre Fauvet, expressed his company's confidence in the company.
To facilitate access to a variety of agricultural products, Twiga began by connecting vendors and outlets with farmers through an app. Twiga has since expanded to include other agricultural products. Fast-moving consumer goods (FMCGs) and manufacturers are now connected with retailers through the company's platform.
Twiga claims to serve more than 100,000 customers across Kenya, delivering more than 600 metric tons of product to more than 10,000 retailers each day, according to the company.
Twiga will collaborate with Jumia to deliver produce to customers in Kenya starting in 2020. Twiga's sorting and distribution centers will be picked up by Jumia's delivery fleet, which will then complete the final mile contactless delivery.
In the case of Twiga, which employs approximately 1,000 people, its revenue is derived from margins on the products it acquires and subsequently sells.
In order to develop a more sustainable method of food production, the funding will be used to integrate large commercial farms into the supply chain, which will be implemented through the use of the funding. This is being done in order to increase the availability of food.
According to the company, it also plans to use a portion of the funding to launch low-cost manufactured food and non-food products under its own brand by end of the calendar year.
The company also plans to expand into new East African markets, such as Uganda and Tanzania, before the end of the year.
