Kenyan agri-tech startup Shamba Pride has secured US$3.7 million in pre-Series A funding, a combination of debt and equity, to accelerate its expansion and enhance its impact.
Shamba Pride, a comprehensive online-to-offline platform, links smallholder farmers with quality agricultural inputs, services, and vital information through its innovative “DigiShops”.
Following its US$1.1 million funding round in 2021, backed by Seedstars Africa Ventures and Gray Matters Capital, Shamba Pride has successfully completed a US$3.7 million pre-Series A round. This latest funding round is spearheaded by EDFI AgriFI – the European Union’s Agriculture Financing Initiative – and includes continued support from Seedstars Africa Ventures.
The funding structure includes a long-term loan of US$2 million from EDFI AgriFI and an equity investment of US$1.7 million from Seedstars Africa Ventures. Notably, Seedstars recently received a substantial US$30 million equity investment from EIB Global.
This investment is poised to bolster Shamba Pride’s ongoing operations in Kenya and facilitate the development of new services. The capital will be instrumental in expanding the company’s franchise network and providing additional working capital for bulk procurement of agricultural inputs.
Shamba Pride’s CEO, Samuel Munguti, expressed enthusiasm about the company’s progress and the transformative impact of the recent investment.
“EDFI AgriFI’s investment marks a pivotal moment in Shamba Pride’s journey, aligning with our vision to positively influence the lives of approximately 200,000 farmers by the end of 2025. Since 2021, we have expanded our reach 10-fold, now encompassing over 220 shops. The additional equity from Seedstars Africa Ventures, coupled with the backing of a respected institutional financier, signifies a major milestone. This support is instrumental in positioning Shamba Pride as a regional leader and a trusted name in the industry,” Munguti stated.
Rodrigo Madrazo, CEO of EDFI Management Company, highlighted the significant impact of the investment. “Our support for Shamba Pride underscores our dedication to fostering entrepreneurship in frontier markets, particularly in rural areas where the impact is most profound.
By providing suitable long-term debt in conjunction with additional equity investment, EDFI AgriFI is set to play a crucial role in accelerating Shamba Pride’s growth,” he commented.
