Nigerian agri-tech startup Farmcrowdy has raised seed funding of US$1 million from a group of international and local investors to help it extend across Nigeria.
Cox Enterprises, Techstars Ventures, Social Capital, Hallett Capital and Right-Side Capital; as well as angel investors Tyler Scriven, Michael Cohn, Josephine Group, FC Agro Allied SPV and Dr. Christof Walter have invested USD1 million in Farmcrowdy which is Nigeria’s first and leading digital agriculture platform which allows Nigerians to venture in and sponsor agriculture and get returns within a period of 3 months upwards.
Farmcrowdy, launched about a year ago, the only African startup from Techstars Atlanta’s 2017 cohort, connects small-scale farmers with investors, who invest in farm cycles.
A farm cycle can be anything from poultry [3-5 months] to cassava [9 months]. The farmers receive up to date advice from Farmcrowdy’s Agric Extension Specialists who also coach them in better agriculture practices and provide them with quality farm input.
Before the harvest, Farmcrowdy reaches out to buyers who assist the farmers sell their yield at harvest and earn a decent margin on time to avoid rot of the farm produce.
The investor in return gets his original sponsorship +40% of the profit from the harvest, the farmer receives 40% of the profit and Farmcrowdy receives 20% of the profit.
Farm sponsors generally get between 6-25% returns after harvest depending on the farm type they sponsor.
Farmcrowdy Investment plans and chart
The brainchild of Nigerian serial entrepreneur Onyeka Akumah, Farmcrowdy has to-date recorded close to 1,000 unique farm sponsors from Nigerians in Nigeria, the US and UK.
The company has aggregated a combined 4,000 acres of farmland across 8 states in Nigeria and worked with more than 2,000 small-scale farmers. Having raised over 250,000 organic chickens on its poultry farm cycles, Farmcrowdy continues to disrupt the agriculture sector through partnering with Nigerians locally and globally to build a community model for the empowerment of local farmers, and the boosting and production of food for Nigerians, while impacting positively on the lives of farmers and their families.
The seed fund will allow the award-winning startup to scale its operations with plans to expand into a combined 20 states in Nigeria, work with 4,000 additional small-scale farmers and engage a combined 20,000 new farm followers and farm sponsors on it’s platform to learn about the opportunities in Agriculture and partner with farmers.
Onyeka Akumah, Co-Founder and CEO of Farmcrowdy says “Today’s seed announcement is a remarkable milestone for us and Nigeria’s Agritech industry as a whole – especially having just celebrated
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