South African startup Pumpkn has secured funding from Renew Capital. The investment aims to address the funding gap in Africa’s agriculture sector. This gap hinders growth in the continent’s agricultural industry.
Pumpkn facilitates financial support for agribusinesses. It uses data to assess the creditworthiness of agricultural SMEs. This helps lenders identify bankable businesses and manage their loan portfolios. The goal is to make agribusiness financing commercially viable and accessible.
Agriculture is crucial to Africa’s economy. It contributes about 35 percent to the GDP and supports nearly half of Africa’s 1.4 billion people.
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Pumpkn’s Commitment to Growth
Despite its importance, many agriculture-focused businesses struggle to find financing. Pumpkn is dedicated to helping these businesses grow.
Co-founder and CEO Zaheer Dindar emphasized the direct impact on job creation, and added that Pumpkn aims to fill the financing gap by providing farmers and entrepreneurs with necessary financial resources.
“Despite agriculture being the major GDP contributor for many African countries, many agriculture-focused businesses still have a hard time finding the financing they need to grow and thrive.
“Pumpkn works closely with agribusinesses to enable their growth, directly impacting job creation.
“It also seeks to fill the financing gap for agribusinesses by providing farmers and entrepreneurs with the financial resources they need to thrive,” Zaheer Dindar, co-founder and CEO of Pumpkn said in a statement.
The company offers fast loan approvals, zero paperwork, and easy accessibility. Its platform connects directly to agri-SMEs’ bank accounts. This feature enables swift financing for essential needs.
Adam Abate, principal of investment at Renew Capital, further highlighted the role of technology. He expressed excitement about supporting Pumpkn’s mission.
“We are witnessing an important shift in Africa, with technology playing a major role in boosting sectors including agriculture.
“We are thrilled to support Pumpkn on its mission and proud to have them as our first-ever investment in South Africa.”
Aiming for Significant Impact by 2030
Pumpkn aims to facilitate over $1 billion in financing to over 150,000 African SMEs by 2030. These SMEs have the potential to create millions of jobs and drive significant economic growth.
Renew Capital has also invested in other African startups. These include Rwanda’s beauty marketplace Zuri, Jamii.one, Farm-to-Feed, Tapii, FlexPay, and Sawa Energy.
Renew Capital invests on behalf of a global network of angel investors seeking financial returns and sustainable social impact.