NIGERIA – Farmcrowdy, Nigeria’s digital agriculture platform has ventured into the e-commerce space with the launch of Farmcrowdy Foods, a one-stop digital marketplace that allows consumers to purchase fresh farm produce from Farmcrowdy’s network of farmers and have it delivered to them.
“Our aim is to ensure that consumers obtain their products from hygienic environments and are properly processed in good conditions. All our products are traceable, healthy, and fit for consumption,” Farmcrowdy said.
Formed in 2016, the Farmcrowdy platform connects small scale farmers across Nigeria with access to finance sourced from individuals and corporates via its online platform, and has so far empowered over 25,000 farmers across 14 states.
The startup raised US$1 million in additional seed funding just over a year ago, and has been broadening its offering since.
Last year it launched Farmgate Africa, which gives major processors and international buyers the opportunity to purchase commodities directly from local farming clusters.
Earlier this year the start-up ventured into the business of selling meat after it acquired a majority stake in Best Foods, an agro company.
There has been an increasing number of startups finding it more lucrative to put their products and services under the e-commerce umbrella.
Recently, Flutterwave, payment solution providers, announced that it was launching Flutterwave store for merchants in 15 African countries.
The company will link with existing logistics providers, such as Sendy in Kenya and Sendbox in Nigeria. While the service will be free for both the buyers and sellers to set up the storefront, Flutterwave will only charge fees on payment transactions.
According to Flutterwave’s CEO, Olugbenga Agboola, the company accelerated the development of Flutterwave Store in response to COVID-19 but emphasized that this product is not a pivot from what Flutterwave is known for.
“It’s not a direction change. We’re still a B2B payment infrastructure company. We are not moving into becoming an online retailer, and no we’re not looking to become Jumia,” he said.
There are more than 250 E-Commerce platforms offering different service including food delivery, online marketplace etc.
Last Month, Jumia partnered with Kenya’s B2B AgriTech Twiga Foods to sell bundles of Twiga’s fresh produce on its E-commerce platform. Jumia will handle both the delivery and the payment through its JumiaPay app.
The African E-Commerce market in 2017 reached US$16 billion and it is expected to reach US$22 billion by 2022.
While there is a lot of uncertainty with the current pandemic, the E-Commerce industry is ripe for more players.