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 Ugandan fintech  Emata Secures $2.4 Million seed fund to expand it’s agri-loan offering across East Africa

Emata – the agricultural finance solution for East African farmers – announces its successful completion of a $2.4 million seed fund raise, comprising $800,000 in equity and $1.6 million in on-lending capital.

The fundraise was backed by African Renaissance Partners – the VC firm investing in entrepreneurs in East Africa and the Horn of Africa; Norrsken Accelerator – an investment arm of Europe’s largest impact tech ecosystem; Zephyr Acorn – an investor in early-stage technology businesses in East Africa; renowned Swedish angel investor Marcus Boström; and global venture philanthropy firm – the Draper Richards Kaplan Foundation.

Bram van den Bosch, Founder & CEO of Emata, said:“We are thrilled to complete our $2.4 million seed fund raise, backed by high-profile, impact-oriented investors who recognize the huge potential of digital agri-loans in East Africa, and beyond. Emata dares farmers to dream big and eliminates traditional obstacles that have made agricultural finance unavailable for the vast majority. Our solution turns a lifelong struggle into a five minute process, and is already tangibly impacting thousands of East African farmers.”

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Proceeds will be used to expand Emata’s agri-loan offering across East Africa – both within its debut market of Uganda, and via imminent international expansion – which is most likely to be Tanzania. It will focus on scaling its core markets – dairy and coffee. A multi-crop company from inception, Emata’s other operations are oilseeds and maize, whilst expansion is also anticipated into potatoes.

As East Africa rapidly digitizes, Emata’s business model addresses East Africa’s lack of agricultural financing – by providing automated loans to farmers. This reduces cost and enables lending to smallholders at rates 5x more affordable than the informal loans they have often relied on to date. Instant lending and data-based decisions also benefits all farmers, without the need for collateral.

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Emata has digitized the full lending process and is embedded in the agricultural value chain – via its partnerships with cooperatives and farmer-based organizations – which aids rapid scaling. Such partnerships also de-risk Emata’s business model, as they provide access to a direct source of repayment – as loan repayments are deducted by Emata’s partners on its behalf. By solving the financing challenge, Emata helps farmers raise their productivity, increase income and food production.

In 2022, Emata grew 7x year-on-year, is now live with 50 agricultural partners – reaching over 40,000 individual farmers – and has disbursed $1 million of loans.

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Emata’s credentials have already attracted global attention. The multiple award-winning company won the coveted “Best Newcomer / Best New Startup” at the 2023 Global Startup Awards – beating 80,000 other start-up entrants from around the world and was named on Yale Africa Startup Review’s list of 30 startups to watch in 2023.

The need for agricultural finance in Sub-Saharan Africa is estimated at $240 billion by consultancy firm Dahlberg, with the value of Emata’s target markets in East Africa being $13 billion.

Other awards won by Emata include those from ‘CATAPULT: Inclusion Africa’ and ‘Fintech Abu Dhabi: The Search in Africa’. They are alumni of the Stockholm-based Norrsken Impact Accelerator and Silicon Valley-based Plug and Play Tech Center Accelerator.

Alex Bakir, General Partner at Norrsken Accelerator, commented:“Norrsken Accelerator invested in Emata because we believe their team and model places them in the top 1% of impact companies, globally. We’re excited to support the team on the next leg of their impact journey.”

Milcah Lukhanyu
Milcah Lukhanyu
I cover tech news across Africa. Drop me an email at [email protected]

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