Farmcrowdy’s 20 states expansion project gets $1 million boost
Farmcrowdy, Nigeria’s pioneer digital agriculture startup has sealed a $1 million seed funding ensuring that its plans to expand operations into twenty states in Nigeria become a reality.
The company which offers Nigerians the platform to venture in and sponsor agriculture, made the announcement on Monday, December 18, 2017. The funding came from international and local investors such as Cox Enterprises, Techstars Ventures, Social Capital, Hallet Capital and Right-Side Capital, as well as angel investors like Tyler Scriven, Michael Cohn, Josephine Group, FC Allied Agro SPV and Christof Walter.
“Today’s seed announcement is a remarkable milestone for us and Nigeria’s agritech industry as a whole – especially having just celebrated the anniversary of our first year of operations in November 2017,” said Onyeka Akumah, co-founder and CEO of Farmcrowdy. “It will allow us to build on our earlier traction as we continue to introduce Nigerians to this exciting new category of partnering with farmers for impact and return.
“We are happy to amplify our work with the farmers across new states in Nigeria while empowering local farmers by hiring more agriculture technology experts to impart knowledge to ensure best practice in farming methods. We are thrilled that as a Nigerian startup operating for just over a year, we have a group of investors who share in the vision and mission of Farmcrowdy, as much as we do.”
Farmcrowdy which was launched only a year ago connects small scale farmers with sponsors, who invest in farm cycles. According to a statement the company sent to BusinessDay, a farm cycle can be anything from poultry (3.5 months) to cassava (9 months). The farmers receive on-the-ground advice from Farmcrowdy’s technical field specialists who also give them training in better agriculture practices and assist the farmers sell their yield at harvest and earn a decent margin. The sponsor then gets their original sponsorship +40 percent of the profit from the harvest, the farmer receives 40 percent of the profit and Farmcrowdy receives 20 percent of the profit. Farm sponsors can get between 6-25 percent return after harvest depending on the farm type they sponsor.
“Techstars is proud and honoured to be a continued part of the Farmcrowdy journey via investment from Techstars Ventures, the venture capital arm of Techstars,” said Cody Simms, Partner, Techstars Ventures. “We first met the Farmcrowdy team at Techstars Atlanta in partnership with Cox Enterprises and were immediately impressed by their vision, execution, and the vast scope of their potential impact to the world.”
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