Farmcrowdy is a Nigerian agric tech that provides funds to small-scale farmers in Nigeria. It was co-founded by Onyeka Akumah, Akindele Phillips, Temitope Omotolani, Christopher Abiodun, and Ifeanyi Anazodo in 2016. To connect farmers with their sponsors to increase food production.
FarmCrowdy has been able to do this by crowdsourcing funds from individuals and corporates, via its online platform. In return, they get a share in the returns. Now, it has amassed a network of over 427,331 farmers, cultivated more than 17,000 acres of farmland, reared above 3 million broilers, and deployed funds for farming projects across the country. It is present in 3 countries
Business Model
Farmcrowdy wants to empower about 38 million smallholder farmers. And give them access to both resources and mentoring to farm untapped farmlands, expand their operation and feed the growing population in Nigeria and West Africa. However, this is not possible without adequate funds. This is where Farm sponsors come in. Farm sponsors are those who can’t farm directly but invest in agriculture to improve the economy and yield a healthy return.
To attract these sponsors, Farmcrowdy uses a profit-sharing model. This means splitting the post-harvest revenues among farm sponsors, farmers and itself. Farmcrowdy retains a 20% portion of those profits. Its unique selling offer to local investors is its ability to offer access to a new asset class agriculture.
An opportunity for investors to directly invest in a variety of crop harvests from the conveniences of their mobile phones, or home tablets/ computers.
Pivoting to a digital agriculture platform.
Farmcrowdy is no longer just a crowdfunding platform. It has set up 6 various businesses. Essentially, these six businesses serve individuals across the agriculture value chain. They include Farmcrowdy Structured Finance Which is a Structured Finance model that raises money for the farmers. Farmers relied on individuals to raise money. But now, it is structured to include formal financial institutions like banks and development finance institutions. Who give large amounts of loans to the farmers.
Farmcrowdy Insurance
The insurance part of Farmcrowdy protects agricultural chain businesses and investments From losses. Essentially it’s an opportunity to provide insurance for several players in the food value chain.
Farmcrowdy Marketing
This is a marketing-as-a-service platform for SMEs in agric chain businesses. It provides them with a food value chain, new website, brand representation or PR services.
Farmcrowdy Tech & Data
Technology is the core factor that powers all of farmcrowdy’s platforms and internal processes.
This business part aims to help people in the food value chain who wants to use tech for their businesses
Farmcrowdy Foods
This is a one-stop digital marketplace for trading raw agro-products, inputs and commodities. Also, it helps Consumers purchase fresh foods products and groceries.
Farmcrowdy Aggregation
This business rounds up new farmers who want to sign up on the Farmcrowdy network to sell what they’ve produced. Farmcrowdy Aggregation, have a flagship product called FC Trader. A safe space for buyers and farmers to meet.
Conclusion
FarmCrowdy has aligned its business models to solve Sustainable Development Goal 2. Which is to end all forms of hunger while promoting food security across the globe. To this effect, the platform has been able to drive an enabling environment for farmers. And have helped to set up more efficient food distribution channels. FarmCrowdy does not only benefit farmers. Other food value chain businesses can benefit from subscribing to any of their business models.
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