Fast-rising agritech startup in Kenya, FarmWorks, has successfully closed a remarkable $4 million Pre-Series A funding round to bolster its operations and make a significant impact in the agricultural sector.
The startup takes a unique approach by connecting farmers with essential farm inputs, including pesticides, and also purchasing their crops, following the out-grower model widely embraced in Africa.
Leading the funding round is Acumen Resilient Agriculture Fund, joined by Livelihood Impact Fund, Vested World, family offices, and angel investors, resulting in a total of $5.6 million raised since FarmWorks’ establishment in 2020.
FarmWorks’ visionary CEO, Yi Li, shared insights into the funding’s purpose, emphasizing three crucial areas of focus.
First, enhancing their data analytics prowess, followed by leveraging AI to optimize production processes.
Lastly, the funding will empower the business to make strategic lending and planning decisions.
The startup’s out-grower network of 2,000 small-scale farmers greatly benefits from a robust supply chain that ensures prompt shipment of their produce.
With an impressive monthly sale of 400 tons of produce, FarmWorks not only provides farmers with a stable market but also offers loans for drip irrigation kits and other essential farm tools.
Speaking about their transformative efforts, Yi stated, “We are transforming what they are farming, and their income by introducing higher value crops like sugar snaps and snow peas, and finding the market. So, we become vertically-integrated from day-one in both the production and the distribution side of the business.”
With a strong commitment to expand, FarmWorks plans to extend its operations to other regions within Kenya, capitalizing on its existing 16 collection centers in the area.
Kenya’s agricultural sector plays a pivotal role in the country’s economy, contributing 27% to the Gross Domestic Product and employing 40% of the population.
FarmWorks addresses crucial issues facing farmers, such as access to farm inputs, poor road networks to farms, and limited knowledge of proper farming practices
