Nigerian agritech company, Winich Farms, has secured $3 million in pre-Series A funding. The company will use the funds to expand its order fulfillment centers and improve its technology. This is the second funding round in two years for the company, which supplies farm grain produce to retailers.
The round was led by Acumen Resilient Agriculture Fund (ARAF), which contributed $2.5 million. Climate Resilient Africa Fund, Marula Square, Plug and Play Tech Centre, and Tekedia Capital also participated. Sahel Capital provided $590,000 in debt.
Winich Farms was founded in 2020 by brothers Riches and Winner Attai, along with Chichebem Jibunoh. It connects rural farmers with retailers and informal processors.
The company processes orders through agents who work with local farmers. Retailers use the company’s app to order produce, and agents organize the farmers to bring the goods to collection points for delivery.
Also Read: Eritrea Water Projects Fueling Agriculture, Livestock, and Growth
Scaling Operations and Expanding Fulfillment Centers
Winich Farms has grown significantly since its launch. “Our growth has come from growing the number of agents on our platform.
“In 2022, we had about 1,000 agents. But at the start of [2024], we reached over 4,000 agents, quadrupling our growth. With more agents, we meet demand faster,” said co-founder and CEO Riches Attai.
The company currently handles monthly orders worth ₦3.7 billion ($2.2 million) and has increased its gross merchandise value (GMV) by 300% to $30 million since 2022.
However, the company faces challenges in delivering produce to farther locations due to the distance between farmers and urban centers like Lagos.
To address this, Winich Farms plans to use the debt funding to lease buildings as regional fulfillment centers across Nigeria’s six geopolitical zones. This will speed up delivery to retailers by sourcing produce from nearby farmers.
Winich Farms to Improve Technology and Financial Access for Farmers
Winich Farms also plans to improve its technology and expand its card operations. It partners with Sterling Bank to provide Verve cards to rural farmers, allowing direct payments into their accounts. The company aims to issue 195,000 cards in the coming months.
The agritech also helps farmers access credit through financial institutions after completing a minimum of three supply cycles.
“Investing in Winich Farms aligns with our goal at ARAF of growing local businesses that support smallholder farmers towards increased productivity, sustainable agricultural development, better livelihoods, and increased food security,” said Tamer El-Raghy, managing director of ARAF.
With the new funding, Winich Farms aims to strengthen its position in Africa’s growing agritech market, competing with players like ThriveAgric, AgroMall, and Zowasel.