AgroCenta raises $790k pre-Series A funding To Boost Its Agric-tech Ecosystem
Ghanaian startup AgroCenta has raised US$790,000 in pre-Series A funding to improve its agri-tech ecosystem and secure crop purchases from smallholder farmers.
Founded in 2016, AgroCenta operates a mobile merchanting platform that provides market information, storage and delivery solutions, and financial services to small scale farmers in Ghana.
Since its inception, registered farmers on AgroCenta’s app, CropChain, have rapidly grown from 3,000 to over 46,000, mainly handling white and yellow maize, rice, soybean, cowpeas, and sorghum.
The startup, which was the winner of the Seedstars World competition back in 2018 and raised seed funding the same year, has now secured US$790,000 in pre-Series A investment from Shell Foundation, FCDO, AV Ventures, and Rabo Foundation.
AgroCenta will use the funding to further develop its smallholder farmer inclusion programs and procure crops at transparent and fair market prices to service offtake contracts.
The startup’s chief executive officer (CEO) Francis Obirikorang and co-founder Michael Ocansey said the investment was vitally crucial.
“This is a significant milestone for AgroCenta, having the support of leading institutions, particularly with the COVID-19 backdrop, underlining the strength of AgroCenta and the importance of its mission,” they said.
“The demand for agricultural raw materials from off-takers in the brewery, manufacturing, and consumer sector is increasing exponentially because of the easing of the COVID-19 restrictions that were put in place by the government of Ghana, hence this capital injection will help to secure purchases at fair and transparent prices from smallholders — a much-needed lifeline for many who are at the proverbial bottom of the pyramid.”