Agribusiness Venture Winich Farms Receives $3 Million Pre-Series A Investment for Agtech Expansion

Winich Farms, a Nigerian agritech company, has announced it has secured $3 million in pre-series A funding. The investment round was led by the Acumen Resilient Agriculture Fund (ARAF) and included participation from Climate Resilient Africa Fund, Marula Square, Plug and Play Tech Centre, Acasia Ventures, Tekedia Capital, and Sahel Capital (debt financing). Additionally, Climate Asset Management also participated in the investment.

Founded in 2020 by Riches Attai, Winner Attai, and Chichebem Jibunoh, Winich Farms aims to address the challenges faced by smallholder farmers in Nigeria by connecting them to retailers and informal processors. The company operates collection points managed by agents, who coordinate with local farmers to gather produce and relay orders to off-takers.

Winich Farms has grown significantly since its inception, serving over 150,000 users, including farmers, agents, and truck drivers. By the beginning of 2024, the company had grown to over 4,000 agents, quadrupling its capacity. The company's growth has been largely driven by the expansion of agents on its platform.

The equity funding will be used to enhance the company's technology and scale its card operations. Winich Farms plans to issue 195,000 Verve cards in the coming months, enabling rural, underbanked farmers to receive payments directly into their bank accounts. The debt funding will be used to lease buildings for regional distribution hubs, which the company plans to establish across Nigeria's six geo-political zones to speed up deliveries for off-takers.

In addition to providing access to credit for farmers who have completed at least three supply cycles, partnering with Sterling Bank for this service, Winich Farms also negotiates fair prices with farmers and sells the produce to off-takers at slightly marked-up margins. The company charges off-takers ₦720 ($0.43) per kg of paddy rice, excluding delivery fees.

Tamer El-Raghy, managing director of ARAF, stated that investing in Winich Farms aligns with ARAF's goal of supporting local businesses that empower smallholder farmers. Winich Farms aims to compete in Africa's growing agritech market alongside other players like ThriveAgric, AgroMall, and Zowasel.

The company sources produce from closer locations like Ondo State to address slower deliveries from northern Nigeria to more distant regions. Winich Farms processes monthly orders valued at ₦3.7 billion ($2.2 million) and has increased its gross merchandise value (GMV) by 300% since 2022, reaching $30 million. The investment in Winich Farms is expected to help the company further expand its reach and impact in the Nigerian agricultural sector.

Agribusiness Venture Winich Farms Receives $3 Million Pre-Series A Investment for Agtech Expansion