Winich Farms announces $3m in pre series A funding

In Nigeria, 80% of farmers are smallholder farmers, making agriculture the largest employer of labor in a nation that has long depended on oil revenues. Despite this, farmers face numerous challenges, including violent conflicts, outdated practices, lack of access to finance, and significant supply chain deficiencies.

Amid these obstacles, Riches Attai, a student at the University of Benin, co-founded Attai’s Beans with Chichebem Jibunoh and Winners Attai to process and repackage beans for consumers. Although the trio eventually parted ways to pursue individual goals, Riches remained focused on addressing one pressing challenge they encountered: the high cost of purchasing beans.

Identifying the Core Issues

During his two-year stint in Kebbi State, Riches launched Winich Farms and identified several key problems within the agricultural supply chain. He found that the presence of middlemen inflated costs for food processors without delivering better earnings for the farmers. Additionally, most farmers lacked access to credit, often without even a bank account. Food processors, in turn, struggled to track the movement and sourcing of their products.

Connecting Farmers and Food Processors

To tackle these challenges, Winich Farms developed a platform connecting smallholder farmers directly to food processors in need of raw materials. This connection not only facilitates smoother transactions but also enhances the farmers’ income potential.

Furthermore, Winich Farms is committed to promoting financial inclusion for farmers. The startup offers digital wallets and has recently piloted a debit card in partnership with Sterling Bank, providing farmers with access to crucial financial services.

Building Creditworthiness

By tracking sales and other activities, Winich Farms helps farmers build their creditworthiness and connects them with financial partners for credit and insurance options. Last year, they successfully piloted a loan scheme for 500 female farmers, achieving a remarkable 100% repayment rate.

Securing Investment and Growth

The startup’s value proposition resonates not only with farmers and food processors but also with investors. Winich Farms recently announced $3 million in pre-Series A funding after previously raising $800,000 from investors like 54 Collective and Expert Dojo. The new funding round consists of $2.5 million in equity from Acumen Resilient Agriculture Fund, Climate Resilient Africa Fund, and others, along with $590,000 in debt funding from Sahel Capital.

Adapting to Market Needs

As internet and smartphone penetration increase in Nigeria, Winich Farms is taking a hybrid approach to serve its primarily rural farmers, who often use feature phones. Inspired by the financial services sector’s mobile money agents, Winich Farms has built an extensive agent network to help farmers sell their produce efficiently.

Farmers can easily locate agents using a USSD code, request a callback from Winich Farms if they encounter difficulties, and check real-time prices of their products. Agents confirm the quality of the products before logging them onto the app with the farmer’s unique identifier, ensuring a seamless transaction process.

Impressive Growth Metrics

Winich Farms has demonstrated impressive growth, closing 2023 with $30 million in gross merchandise value—a 3x increase from the previous year. Its user base now includes 150,000 farmers, off-takers, and truck drivers, with 139,000 of them being farmers.

Facing Challenges and Future Prospects

While Winich Farms is thriving, it has faced challenges in making timely payments to farmers. The introduction of digital wallets and debit cards has helped streamline payments, allowing the startup to pay farmers on time and build their creditworthiness. Currently, there are 25,000 debit cards in circulation, with plans to expand this to 195,000 in the coming years.

As Winich Farms continues to grow, its commitment to empowering smallholder farmers in Nigeria remains steadfast, promising a brighter future for the agricultural sector. By addressing critical challenges and fostering financial inclusion, Winich Farms is set to play a transformative role in Nigeria’s agricultural landscape.