Nigeria’s Farmcrowdy, an online platform allowing Nigerians to venture in and sponsor agriculture has closed $1 million in seed funding to scale its operations with plans to expand into a combined 20 states in Nigeria.
The $1m was raised from Cox Enterprises, Techstars Ventures, Social Capital, Hallett Capital and Right-Side Capital; as well as angel investors Tyler Scriven, Michael Cohn,Josephine Group, FC Agro Allied SPV and Dr. Christof Walter.
The money will also see it work with 4,000 additional small-scale farmers and engage a combined 20,000 new farm followers and farm sponsors on it’s platform to learn about the opportunities in Agriculture and partner with farmers.
According to Onyeka Akumah, Co-Founder and CEO of Farmcrowdy, “Today’s seed announcement is a remarkable milestone for us and Nigeria’s Agritech industry as a whole. It will allow us to build on our earlier traction as we continue to introduce Nigerians to this exciting new category of partnering with farmers for impact and return.”
Launched just over a year ago, Farmcrowdy, was the only African startup from Techstars Atlanta’s 2017 cohort and connects small scale farmers with sponsors, who invest in farm cycles. A farm cycle can be anything from poultry [3-5 months] to cassava [9 months].
The farmers receive on-the-ground advice from Farmcrowdy’s Technical Field Specialists who also give them training in better agriculture practices and provide them with quality farm input. Prior to harvest, Farmcrowdy works with pre-arranged buyers who assist the farmers sell their yield at harvest and earn a decent margin.
The sponsor then gets their original sponsorship +40% of the profit from the harvest, the farmer receives 40% of the profit and Farmcrowdy receives 20% of the profit. Farm sponsors can get between 6-25% returns after harvest depending on the farm type they sponsor.
Farmcrowdy has to-date recorded close to 1,000 unique farm sponsors from Nigerians in Nigeria, the US and UK. The company has aggregated a combined 4,000 acres of farmland across 8 states in Nigeria and worked with more than 2,000 small scale farmers. The site has raised over 250,000 organic chickens on its poultry farm cycles.
Farmcrowdy recently launched their first mobile app which provides an accessible platform for agriculture enthusiasts to experience, learn, do their farming business with real farmers and appreciate agriculture practice first-hand through regular updates, images and videos from the farms. These allows Farm sponsors and farm followers to digitally track the progress of their sponsored farms from their mobile devices. The app has seen close to 5,000 downloads in the 3 weeks since launch, positioning the startup to take on more farm followers and sponsors both locally in Nigeria and globally.
“Onyeka Akumah and the Farmcrowdy team are changing the global dynamics of farming and agriculture. Techstars is proud and honored to be a continued part of the Farmcrowdy journey via investment from Techstars Ventures, the venture capital arm of Techstars. We first met the Farmcrowdy team at Techstars Atlanta in partnership with Cox Enterprises and were immediately impressed by their vision, execution, and the vast scope of their potential impact to the world,” said Cody Simms, Partner, Techstars Ventures.