ThriveAgric secures $56.4m debt funding to promote pan-Africa expansion

Thrive Agric ThriveAgric, an agriculture investment platform, has announced a $56.4 million debt financing from local commercial banks and institutional investors. According to a company statement, the funding includes a $1.75 million co-investment grant from the USAID-funded West Africa Trade & Investment.

This latest round of funding comes on top of the $9 million raised by the company in 2020. The new investment will allow the company to expand its 200,000+ farmer base and enter new African markets such as Ghana, Zambia, and Kenya.

ThriveAgric, founded in 2017 (and fully operational since 2018), enables Nigerian farmers to sell their products to FMCGs and food processors by leveraging its proprietary technology to gain access to finance while also improving productivity and sales to promote food security.

Chief Executive Officer Uka Eje stated the following about the impact of the funds:

“With this new investment, we are one step closer to realizing our mission of establishing the largest network of profitable African farmers through the use of technology to ensure food security.” We are optimistic about the future because we know that this new investment will benefit our smallholder farmers financially even more. Despite a volatile backdrop created by the global pandemic over the last few years, ThriveAgric experienced temporary payment disruptions to our retail crowdfunders. However, we were able to overcome those obstacles within a year and keep the company profitable. Our strong financial performance demonstrates investors’ confidence in ThriveAgric.”

“It is great to see that the market has overwhelmingly backed our farmers and they are confident in the strategic decisions we have taken. ThriveAgric has increased its footprint to 20 states in Nigeria, and we look forward to a lengthy period of growth as we continue to link African farmers to capital, data-driven best practices and access to local and global markets for their commodities”, he concludes.

The Agricultural Operating System (AOS) of ThriveAgric operates entirely offline, sends USSD to farmers, and powers Android apps used by field agents to digitally collate creditworthy farmers and gather relevant farm data. Farmers who work with ThriveAgric can charge premium prices for their commodities, increasing their income by up to 25%.

By assisting smallholder farmers in producing high-quality grains, the company helps Africa’s agriculture sector. Harvests such as maize, rice, and soybeans are stored in many of the company’s 450+ warehouses in Bauchi, Jigawa, Kaduna, Kano, and Katsina states in Nigeria before being commoditized and offered at a premium price to local and global trade markets.

Last year, the tech-driven agribusiness faced new allegations of nonpayment of matured investments. This resulted in the CEO, Uka Eje, taking a brief leave of absence and the appointment of Adia Sowho, the ex-VP Growth of Migo, as the company’s interim CEO. Adia has since moved on to MTN, after stabilizing the company and paying out the claims.

The incident also resulted in the appointment of key personnel, including Chief Financial Officer Olurotimi Arigbede and Head of Risk Management and Compliance Michael Kadiri. The company resolved all outstanding disputes with subscribers under the strengthened management structure.

Since then, the company has reported a five-fold increase in revenue over the last 12 months, as well as a 277 percent increase in farmer numbers year on year. Farmers who used the company’s AOS proprietary product contributed to the high margin performance.

Smallholder farmers account for more than 80% of Nigeria’s agricultural industry. Access to finance, consulting, and markets are significant impediments. Almost 72% live below the poverty line on less than $1.90 per day.

Ayo Arikawe, Co-founder and CTO, commented on the funding:

“ThriveAgric’s fundraising objectives are geared towards growth through vertical and horizontal integration. One of our goals is to be able to widen access to markets for our smallholder farmers, help to lift them out of poverty, and ultimately promote food security. We do this by enabling them to take their produce to local and international markets. We’re thrilled and excited to receive support from such high calibre investors. Their financial backing is an essential step in fulfilling ThriveAgric’s vision to build an Africa that feeds herself and the world.”