KENYA – In a notable development, Kenyan agritech startup, Twiga Foods, has successfully raised undisclosed funding from a consortium of investors, including Creadev and Juven to accelerate its transformation and growth.
This financial injection comes at a crucial juncture for the company as it undertakes a significant restructuring phase, marked by a reduction in its workforce by nearly 40% last August, driven by challenging market conditions.
The fresh funds secured by Twiga Foods are poised to play a pivotal role in supporting the company’s ongoing operations, facilitating its growth trajectory, and enabling adaptability to the dynamic landscape of market conditions.
Since its establishment in 2014 by co-founders Peter Njonjo and Grant Brooke, Twiga Foods has functioned as a platform connecting farmers with food vendors, creating efficiencies in the agricultural supply chain.
CEO and Co-Founder of Twiga Foods, Peter Njonjo, emphasized that the funding round represents the culmination of a strategic transformation initiative aimed at enhancing the company’s cost efficiency and improving overall service delivery to its customers.
“The funding secured by Twiga Foods not only underscores the confidence investors have in the company’s potential but also positions it strategically for growth and innovation.”
Acknowledging the impact of the recent workforce reduction, Njonjo expressed gratitude to both current and departing employees for their invaluable contributions to Twiga’s success.
The restructuring efforts undertaken by Twiga Foods involve streamlining operations and optimizing cost structures. This strategic move is considered essential to align staffing levels with current business needs, ensuring the long-term sustainability of the company.
Despite facing economic headwinds, Twiga Foods remains committed to providing affordable goods and services to its customers, showcasing its resilience and adaptability in navigating challenges.
Twiga Foods, known for its B2B e-commerce technology platform in Africa, has been undergoing a transformative journey to become a lean, agile, and cost-efficient organization.
As part of this transformation, the company conducted a thorough review of its operating model, leading to the declaration of some roles as redundant. Notably, the process was carried out in full compliance with applicable labor laws.
The company’s leadership assured customers, suppliers, staff, and stakeholders of its unwavering commitment to revolutionizing the industry.
Twiga Foods aims to create lasting value and make a positive impact on the region’s food security through the strategic application of technology.
As the global economic landscape undergoes shifts, Twiga Foods stands as a testament to the adaptability and resilience of the agritech sector in navigating challenges and pursuing sustainable business practices.
