A Kenyan Agtech company called FarmWorks has secured $4.1 million in pre-Series A funding.
The company offers farmers access to agricultural inputs and a market for their produce.
According to reports by TechCrunch, the funding round was led by Acumen Resilient Agriculture Fund, with participation from Livelihood Impact Fund, Vested World, family offices and angel investors.
“In total, FarmWorks has raised $5.6 million in equity funding. With this investment, the company aims to bolster its data analytics capabilities and leverage AI to improve production, planting and lending decisions,” the report noted.
FarmWorks operates an out-grower scheme that brings together more than 2,000 smallholder farmers.
Through this scheme, the company has built a supply chain network to ensure the timely delivery of high-quality produce.
Its plans involve expanding the network of contract farmers to other regions in Kenya, in addition to the two counties where it currently operates with 16 collection centres.
The startup’s services include providing farmers with farm inputs, pest control services, and purchasing their produce for export or local sales.
Furthermore, it offers farming equipment like drip irrigation kits on loan.
By focusing on higher-value crops like sugar snaps and snow peas, FarmWorks aims to transform farmers’ income and become involved in both the production and distribution aspects of the business.
“Kenya’s agriculture sector plays a significant role in the country’s economy, contributing 20% to the Gross Domestic Product (GDP) and employing 70% of the rural population. However, small-scale farmers, who constitute the majority, face numerous challenges, including a lack of quality farm inputs, limited information on good agricultural practices, inadequate advisory support, and uncertain markets,” TechCrunch noted.
To address these challenges, FarmWorks not only provides resources and services but also educates farmers on good agricultural practices through its trial farms.
The company believes that the key issue faced by Kenyan farmers is production, and it aims to boost farmers’ capacity and yield by addressing poor farming practices and soil degradation. Currently, FarmWorks sells around 400 tons of farm produce monthly
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Previously, FarmWorks was engaged in crop production on its farms, but it has now transformed those farms into training centres.
This strategic decision allows the company to reach and support a larger number of farmers efficiently.
The startup’s Chief Executive Officer (CEO), Yi Li, worked as a management consultant for McKinsey in Kenya before co-founding FarmWorks in 2020 with Peter Muthee, who has extensive experience in the agriculture sector spanning nearly three decades.