Kenyan agtech startup Shamba Pride has secured $3.7 million in a pre-Series A funding round led by the European Union’s agriculture financing initiative, EDFI AgriFI, and Seedstars Africa Ventures. Shamba Pride focuses on improving last-mile distribution for farm inputs and addressing issues such as price exploitation and quality challenges for farmers. The startup has developed a network of 2,700 merchants, known as agro-dealers or digishops, covering 24 counties in Kenya. The new funding will be used to further expand its franchise network and merchant coverage in Kenya, with plans to explore neighboring markets like Tanzania, Uganda, and Zambia in the future.
Since its establishment in 2016, Shamba Pride has been working to enhance the distribution of farm inputs and combat challenges faced by farmers in the last-mile supply chain. The company’s merchant network, digishops, plays a crucial role in achieving these goals. Currently, Shamba Pride has a network of 2,700 agro-dealers across 24 counties in Kenya, covering over half of the country. The agtech startup has now raised $3.7 million in a pre-Series A funding round from the European Union’s agriculture financing initiative, EDFI AgriFI, and Seedstars Africa Ventures (SAV).
Shamba Pride plans to utilize this funding to scale its operations further within Kenya, expanding its franchise network and increasing its coverage of retailers and agricultural regions within the country over the next year. Beyond that, the company has ambitions to explore neighboring markets like Tanzania, Uganda, and Zambia, which face similar challenges in the farm input supply chain. The expansion within Kenya will also involve enhancing its franchise network. Shamba Pride’s growth and impact on the agriculture sector have been driven by its digitization efforts, empowering agro-dealers with tools for business management and inventory ordering.
The agtech startup focuses on empowering agro-dealers, who play a significant role in controlling the distribution of agriculture inputs in rural communities. By providing these agro-dealers with the right technology and tools, Shamba Pride ensures visibility of their businesses, professional and commercial development, and support for farmers in their communities. The company’s services extend beyond digitizing agro-dealers; it also provides farmers with market linkages, Buy Now Pay Later (BNPL) financial services, and training information through its USSD platform.
Shamba Pride’s primary target is small-scale farmers in Kenya, contributing to the country’s agriculture sector, which holds significant economic importance. The agriculture sector in Kenya contributes 33% to the country’s GDP, employs over 40% of the population, and sustains more than 70% of those in rural areas. Moreover, it accounts for 65% of export earnings. Shamba Pride’s success is rooted in innovations that facilitate day-to-day farming activities, and the company takes pride in contributing to the success of women entrepreneurship within the agriculture sector.
The latest funding round follows a capital raise of $1.1 million in 2021 from Seedstars Africa Ventures (SAV) and Gray Matters Capital. Shamba Pride’s commitment to improving the last-mile distribution for farm inputs aligns with the broader goal of enhancing efficiency, reducing exploitation, and addressing quality challenges faced by farmers. As the company continues its growth trajectory, supported by funding and strategic partnerships, it aims to make a positive impact on agriculture in Kenya and neighboring markets, ultimately contributing to the well-being of small-scale farmers in the region.
