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Farmcrowdy, perhaps Nigeria’s most celebrated agribusiness startup, has secured a $325,000 grant from GSMA, a body representing mobile operators and companies around the world. The investment derives from GSMA’s Ecosystem Accelerator Innovation Fund and is provided via the organization’s Mobile Development Team. Farmcrowdy runs an agricultural investment model that links farmers with sponsors who invest their money in the farmer’s agribusiness for a share of eventual revenues. Because the startup leverages on a digital platform that’s accessible via the web, intending sponsors can easily examine available investment offerings and choose whichever fits their financial capability and preferred rate of returns. The relative novelty of Farmcrowdy’s farm production sponsorship system in Nigeria ensures that it’s one of the more well-known agribusiness startups in these parts; the fact that it solves farmers’ funding problems and generates returns for investors has made it a success. The award from GSMA was presented to Farmcrowdy at the Mobile World Congress currently taking place in Barcelona, Spain. Nigerian tutor startup PrepClass, also received a non-equity grant, as did startups from Uganda, Kenya, Egypt, Tanzania, and Zambia. Onyeka Akuma, co-founder and CEO of Farmcrowdy, spoke of his excitement for the opportunities the grant could open up for his startup. “We are thrilled about the possibilities this grant will provide as we continually strive to remain on the forefront of innovation in Agritech across Nigeria,” Akuma said. “This award will play a crucial part in the continued journey towards scaling our activities across the country while building their relationships with the telecommunication partners of GSMA across Nigeria.” In specific terms, Farmcrowdy’s expansion plans- which it hopes will be enabled by the grant -includes the development of a mobile app with which farmers will be able to receive vital information, make electronic payments, and communicate with field specialists. The latest in a string of wins Farmcrowdy’s GSMA grant is only the latest in a series of awards and investments it has received from within and beyond the shores of Nigeria. Since its takeoff just over a year ago, the startup has attracted much interest from tech enthusiasts, agriculture industry watchers, and investors. Last year, it raised $1 million from investors including Techstars, Cox ventures and Social Capital. Farmcrowdy aims for the investment to aid its expansion beyond the eight states in which it presently operates, and to help it get 20,000 more people onboard its farm followers and farm sponsors network. Also tucked in-between and around its two major funding breakthroughs are several awards and public recognitions, including making it to BusinessDay’s Top 25 Most Innovative Companies and Institutions for 2017. The new injection of funds should lead to even more meaningful work being done by Farmcrowdy, as it builds a modern agricultural ecosystem on the foundations of crowdfunding and digital technology.
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This article was first published on 1st March 2018

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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