In a significant shift within the African agrifoodtech landscape, startups operating in the Ag Marketplaces & Fintech category have surged to the forefront of investment in the early months of 2024, surpassing the previously dominant Midstream Tech sector. According to AgFunder’s recently released Africa Agrifoodtech Investment Report 2024, this category attracted $65 million, representing a remarkable 41% of total agrifoodtech investment on the continent so far this year. This trend highlights the growing importance of digital solutions in transforming agricultural practices across Africa.
The Ag Marketplaces & Fintech category, while accounting for a smaller number of deals—17 out of 47 closed transactions—has emerged as a powerhouse of funding, largely driven by a few substantial deals. Notably, Kenya has distinguished itself as the frontrunner in this space, garnering $40 million, or 62% of the total funding, alongside leading in deal count with eight transactions, comprising 47% of the deals in this category.
The increasing prominence of digital platforms in the agrifoodtech ecosystem is reshaping how services are delivered and consumed across the continent. These platforms are revolutionizing the agricultural supply chain by connecting farmers directly with retailers and consumers, effectively eliminating middlemen. This transformation not only cuts costs but also enhances efficiency, empowering farmers with access to real-time weather updates, market prices, and financial services. Consumers benefit from streamlined payment systems and social networks, all integrated within user-friendly platforms that foster commerce.
Historically, the Ag Marketplaces & Fintech category has been a consistent performer in Africa’s agrifoodtech investment scene. In 2023, it represented 27% of total funding, despite a 60% year-on-year decline in funding across all categories. This decline must be understood in the broader context of a 62% drop in total funding for the continent. Over the past decade, from 2014 to 2023, the category has maintained its status as the most active in terms of deal volume, with 198 deals accounting for 21% of all transactions. In terms of dollar funding, it ranks second, having secured 24% of the $2.2 billion total, amounting to $544 million.
Kenya has emerged as a leader in this category over the past ten years, attracting $335 million—62% of total funding—across 74 deals. Nigeria and Ghana follow, with $102 million and $29 million, respectively. This regional performance underscores the potential of digital platforms to enhance agricultural practices and economic opportunities across Africa.
Several notable deals have defined the landscape in 2024. Pula Advisors, a Kenyan company specializing in digital agricultural insurance for smallholder farmers, raised $20 million in a Series B round, supported by significant investors including the Bill & Melinda Gates Foundation. Another Kenyan startup, Apollo Agriculture, secured a $10 million debt deal, focusing on providing farmers with access to agricultural inputs and financing. Ghana’s Complete Farmer raised $9 million in a Series A round, offering a digital sourcing platform that bypasses traditional middlemen, while the WARC Group and YoLa Fresh attracted $7.5 million and $7 million, respectively, for their innovative approaches to enhancing agricultural trade and distribution.
As the agrifoodtech ecosystem in Africa continues to evolve, the rise of Ag Marketplaces & Fintech startups signals a transformative shift towards digital solutions that promise to empower farmers and streamline supply chains. The implications of this trend extend beyond mere funding figures; they represent a fundamental change in how agricultural services are delivered, with the potential to drive economic growth and improve food security across the continent.