Crop2Cash Receives $350K Investment for Farmer Financial Inclusion

Crop2Cash Receives $350K Investment for Farmer Financial Inclusion

By Staff Writer, 25 June 2024

Village Capital has announced a $350,000 investment in Crop2Cash, a Nigerian agtech startup dedicated to aiding smallholder farmers. Crop2Cash offers services including banking, credit, agricultural inputs, warehousing, and insurance to help farmers grow their businesses and improve their livelihoods. This investment is part of Village Capital’s Reducing Inequalities Investment Facility, which is supported by FMO’s Micro and Small Enterprise Fund (MASSIF). The initiative aims to promote financial inclusion by investing in innovative financial solutions and inclusive businesses.

Michael Ogundare, the founder of Crop2Cash, expressed enthusiasm for the investment, stating, “We are thrilled to receive this investment from Village Capital, which validates our approach to addressing the critical challenges smallholder farmers face in Nigeria. By leveraging our unique technology and strategic partnerships, we are revolutionising financial inclusion and providing smallholder farmers with the comprehensive support they need to grow their businesses and improve their livelihoods. This funding will accelerate our efforts to build a more sustainable and equitable future for African agriculture.”

Kavon Badie, Investment Officer at Village Capital, also commented on the partnership, saying, “For the Reducing Inequalities Initiative, we are looking for companies that create opportunity and improve the quality of life for rural livelihoods. Crop2Cash is doing this for thousands of smallholder farmers in Nigeria by enabling financial inclusion and access to essential services required for farmers to grow their businesses and thrive. We are excited to partner with Michael and the Crop2Cash team as they scale this impact to more smallholder farmers.”

Crop2Cash has already raised $2.8 million in credit for smallholders and supported 400,000 farmers in Nigeria. The startup addresses the issue of financial exclusion, which plagues many smallholder farmers due to stringent collateral requirements, limited understanding of market risks, and a lack of a robust rural branch network. Despite a 35% annual growth in agricultural finance from banks, less than 5% of their loan portfolios are allocated to this sector. Crop2Cash aims to bridge this gap by providing essential financial services and support to smallholder farmers.

Source: Deborah Faboade / Space in Africa

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