KENYA – Twiga Foods Ltd, one of Africa’s largest grocers to watch is set to receive US$3 million from the International Finance Corporation (IFC) in a series of funding aimed at raising about US$7 million from investors, reported Business Daily.
Twiga Foods is a mobile-based supply platform for Africa’s retail outlets, kiosks, and market stalls, including food delivery.
Through its mobile cashless platform, a mobile-based supply platform for Africa’s retail outlets, kiosks, and market stalls.
It boasts of low-cost, better quality products and more efficient supply chains through elimination of multiple layers of middlemen.
IFC’s US$3 million is alongside investments from other companies including TLCom, a venture capital firm who will invest up to US$4 million in the company.
Twiga Foods, which launched operations in 2014 plans to scale up its operations and introduce new offerings such as credit services.
Its business includes operations mangoes, potatoes, onions, tomatoes, cabbages in addition to off matching vendors with banana farmers.
Twiga shareholders are Peter Njonjo, Grant Brooke, DOB Equity, Omidyar Network, Wamda Capital, 1776 Seed Investors, Alpha Mundi and Blue Haven Initiative.
Increasing farmer productivity
Back in 2017, the bulk supplier raised US$10.3 million through debt and equity instruments led by Wamda Capital.
Through such investments, it enables farmers access stable markets at better prices, while minimising post-harvest losses through efficient logistics.
The firm says the investments have gone into developing talent, supporting hubs, and attracting capital to the market.
Commenting on the matter IFC said, “The project will enhance integration of different stakeholders in the agricultural value chain working towards increasing farmer productivity.”
“In addition, the project could increase access to new services (for example credit) by reducing informality and demonstrating that farmers can be reached in a commercially sustainable way through technology.”