By Jeph Ajobaju, Chief Copy Editor
Agricorp has raised $17.5 million to increase output to 7,000 metric tonnes (mt) of spices per year which it produces for export to earn foreign exchange (forex).
Vami Nigeria, One Capital LLC and AFEX were investors that took part in the Series A round, according to Disrupt Africa.
Nairametrics reports that Vami invested $11.5 million in equity, other investors empowered the startup with working capital financing.
Agricorp, founded in 2018 by Kenneth Obiajulu and Wale Omotimirin, has supported over 5,000 smallholder farmers with inputs and training on good agronomic practices.
It has also built a 0.5 mt per hour spice processing plant in Kaduna that produces value added products for the export market.
The startup leverages technology to produce, process, and export spices – and aims to become the largest exporter of agricultural spices across Africa by increasing production to 7,000 mt per year.
Agricorp has developed Farmbase, a proprietary technology that registers, aggregates, and pays farmers for produce sold.
In a market where farmers are largely undocumented and unbanked, Agricorp collates data that can help provide detailed analysis for stakeholders to make informed agricultural decisions.
It also helps with traceability of all farmer activities from farm input to disbursement, sales of produce and, eventually, payment.
Financial institutions can also use this information to provide loans, credit facilities, and insurance to interested parties, according to Nairametrics.
The funding will help upgrade Agricorp’s spices process capacity to 7,000 mt per year, set up regional sales operations in South Africa and East Africa, acquire certifications for food safety and hygiene, increase staff strength to meet growing demand, and improve marketing.
Maximising potential to boost forex
“We believe that by increasing our capacity to 7,000 mt, we will maximise the potential to boost Nigeria’s forex earnings through export, said Obiajulu, Agricorp Chief Executive Officer.
That will enable us to “contribute our quota to improving the Nigerian GDP from agriculture, and serve as a worthy model to African youths who aspire to be agribusiness owners.
“We want to show them it is possible and very rewarding as well.”