The company has injected $10 million (1.16 billion shillings) into new agricultural venture, Twiga Fresh, months after closing a $50 million Series C round to expand its operations in Kenya and the countries neighbors. The round was led by Creadev, with participation from former investors who participated in Twiga’s Series B round in 2019. African companies TLcom, IFC Ventures, DOB Equity and Goldman Sachs spin-off Juven participated in the tower and new investors. OP Finnfund Global and Endeavor Catalyst Fund.
According to CEO Peter Njonjo, Twiga Fresh has leased a 650 hectare farm from Taita Taveta. He intends to employ modern farming techniques to grow onions, tomatoes and watermelons and increase yields.
Peter also noted that the arrival of the new agricultural venture is part of Twiga Foods’ product diversification strategy as it strives to attract end consumers and smaller stores with thin margins.
“Twiga Fresh, in addition to our growing range of private label products, will enable us to drive customer growth and expand basket size by offering quality products at a discount to market prices in force,” said Peter Njonjo, Twiga Foods CEO and co-founder.
He added that Twiga Fresh would be debt-financed on a long-term basis in collaboration with development finance institutions focusing on primary agriculture and food security.
Twiga is also betting on lower prices to attract end consumers and small businesses that rely on small margins.
According to Mr. Njonjo, “Commodity volatility in today’s world is driving an unprecedented level of food inflation around the world. In Africa, we can least afford this disruption, and that is why we are excited about the impending impact our technology-enabled supply chain will have on reducing the cost of food,”
Since its launch in 2014, Twiga Foods has helped more than 17,000 fresh food producers by delivering an average of three times a week to an average of 8,000 retailers. The company, which aims to address supply chain shortcomings by helping reduce food prices for consumers, is aiming for pan-African expansion, with plans to expand into other East African markets. East, Uganda and Tanzania, before the end of the year. .