Kenya’s B2B food distribution platform Twiga Foods has raised US$30 million from several investors led by Goldman Sachs.
The company has secured US$23.75 in equity from Goldman Sachs, IFC, TLcom Capital, and Creadev in a Series B round and US$6.25 million of the funding in convertible debt.
Twiga will use the funds to set up a distribution centre in Nairobi and deepen its conversion to offering supply chain services for both agricultural which includes fruits and vegetables. The company has diversified its supply chain service by now including FMCG products.
Twiga Foods is also targeting Pan-African expansion by the third quarter of 2020.
Peter Njonjo, CEO and Co-founder at Twiga Foods, says, “This funding enables us to invest in our technology and organization to tackle the inefficiencies in Africa’s domestic food production and distribution ecosystems; a US$300bn informal and fragmented market that is estimated to grow to US$1trn by 2030. With the support of our investors, we are developing technology-driven commercial solutions and cooperating with existing industry players to solve the challenge of food security in Africa.”
Twiga is also tackling inefficiencies in the supply chain, helping to reduce food prices for consumers. Currently, between 30 and 50 per cent of fresh produce is lost through poor post-harvest processes. Through investment in its supply chain and material handling, Twiga has reduced the level of food waste by up to 70% compared to the market averages.
Jules Frebault of Goldman Sachs said, “Twiga’s innovative model combines technology and modern logistics tailored to the local market to re-engineer the food supply chain. We are delighted to be backing Peter and the highly capable team as they scale operations and drive sustainable access to lower-cost quality food on the continent.”
Earlier this year, the company raised another US$5 million from Creadev, a global long-term investment firm wholly funded by the Mulliez family.
Founded in 2014 by Grant Brooke and Peter Njonjo, Twiga Foods platform uses mobile phone technology to match supply and demand, aggregating market participants and finding buyers for farmers’ produce in Africa’s large, but highly fragmented fruit and vegetable market. The company currently works with 17,000 farmers, and 8,500 retailers.
Twiga Foods is one of the best-funded startups in Africa.
Image Credits: Twiga Foods
Update: At 13:53 pm on Peter Njonjo and Jules Frebault statements