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Ghana-based Agtech Firm Farmerline Secures $1.5 Million Investment from Oikocredit

Farmerline, a Ghana-based agtech company, has secured an additional $1.5 million in equity funding from Dutch impact investor Oikocredit as part of its second close of the pre-Series A round. This new investment brings the total amount raised in the round to $14.4 million, including $6.4 million in debt funding.

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Expansion Across West Africa

The funding comes at a time when Farmerline is expanding its operations across West Africa, with a focus on setting up shop in Ivory Coast. Founded in 2013 by Alloysius Attah and Emmanuel Owusu Addai, Farmerline works through agro-dealers to ensure access to high-quality supplies, including fertilizer and seeds.

Digitizing the Supply Chain

Farmerline’s proprietary AI technology platform, Mergdata, is used by partner retailers to digitize the farmers they serve. This platform enables the generation of data required to predict demand for farm supplies and prevent stock-outs. The data also helps determine the amount of business expansion credit to give to agro-dealers.

Strengthening Infrastructure

With the new funding, Farmerline plans to strengthen its infrastructure, including warehouses and distribution networks. This will enable faster movement of supplies to and from rural areas, supporting farmers in accessing markets for better incomes and reducing post-harvest losses and waste.

Impact on Farmers

Farmerline’s CEO, Alloysius Attah, stated, "With the support of Oikocredit alongside our first-round funders, our distribution, logistics, and financing services will continue not only in Ghana but also in Ivory Coast where we’ve recently begun the process of expanding our team."

Attah emphasized that Farmerline is committed to using technology to improve access to markets for farmers. "As fertiliser prices more than quadruple and the conflict in Ukraine compounds global food security challenges, this investment is crucial," he added.

Growth Plans

Farmerline aims to reach 300,000 farmers in 2022, a nearly 400% increase from last year’s direct-reach of 79,000 farmers. The startup has already financed around $18 million worth of inputs and crops through franchise shop alliances with agribusinesses and input dealers.

Oikocredit’s Investment

Mila Georgieva, Oikocredit’s equity officer, commented on the investment: "The harmful impact of rocketing fertiliser costs on smallholder farmers in Africa is clear. With our investment in Farmerline, we are supporting those most affected by the price volatility."

Georgieva highlighted that Oikocredit’s investments in the agriculture sector are at the core of its work as a social impact investor. "We have already identified synergies with other portfolio companies and are thrilled to support Farmerline Group and smallholder communities across Ghana and Ivory Coast," she added.

Ongoing Growth

Farmerline has secured funding from several notable investors, including Acumen Resilient Agriculture Fund (ARAF), FMO, the Dutch entrepreneurial development bank, and Greater Good Ventures. The company’s growth plans are supported by its commitment to using technology to improve access to markets for farmers.

Industry Impact

The investment in Farmerline highlights the growing interest in agtech companies that use technology to improve access to markets for farmers. As the global food security challenges continue to escalate, innovative solutions like Farmerline’s are becoming increasingly important.

Conclusion

Farmerline’s expansion across West Africa and its commitment to using technology to improve access to markets for farmers make it an exciting player in the agtech space. With the new funding from Oikocredit, the company is well-positioned to continue its growth plans and make a significant impact on smallholder farmers in Ghana and beyond.

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