Expanding its agritech operations, Winich Farms rakes in $3 million through Pre-Series A funding round.

Winich Farms, a Nigerian agritech company, has successfully secured $3 million in pre-series A funding. This round was led by the Acumen Resilient Agriculture Fund (ARAF) and also participated by Climate Resilient Africa Fund, Marula Square, Plug and Play Tech Centre, Acasia Ventures, Tekedia Capital, Sahel Capital, Goodwell Investments, and Omnivore.

Founded in 2020 by Riches Attai, Winner Attai, and Chichebem Jibunoh, Winich Farms negotiates fair prices with farmers and sells the produce to off-takers at slightly marked-up margins. The company's innovative solution to delivery challenges involves sourcing produce from closer locations, such as Ondo State, instead of distant regions like Kebbi or Kaduna.

With the new funding, Winich Farms plans to enhance its technology and scale its card operations. In partnership with Sterling Bank, the company issues Verve cards to rural, underbanked farmers for direct bank payments. Winich Farms aims to issue 195,000 Verve cards in the coming months.

The company's growth has been largely driven by the expansion of agents on its platform. Co-founder and CEO Riches Attai stated that the company serves over 150,000 users, including farmers, agents, and truck drivers. 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 debt funding will be used to lease buildings that will serve as regional distribution hubs. Winich Farms also plans to establish fulfillment centers in Nigeria's six geo-political zones to speed up deliveries for off-takers. The company connects rural farmers to retailers and informal processors through collection points managed by agents.

In addition to offering fair prices to farmers, Winich Farms provides access to credit by connecting farmers who have completed at least three supply cycles with financial institutions. As of the beginning of 2024, Winich Farms had grown to over 4,000 agents, quadrupling its capacity.

Tamer El-Raghy, managing director of ARAF, stated that investing in Winich Farms supports local businesses that empower smallholder farmers. The company competes in Africa's growing agritech market alongside companies like ThriveAgric, AgroMall, and Zowasel. Currently, the company charges off-takers ₦720 ($0.43) per kg of paddy rice, excluding delivery fees.

Winich Farms' mission is to revolutionise agriculture in Nigeria and create a sustainable supply chain for farmers and off-takers. With its recent funding, the company is well-positioned to continue its growth and make a significant impact in the agritech industry.

Expanding its agritech operations, Winich Farms rakes in $3 million through Pre-Series A funding round.