Senegalese Agritech Startup ‘Afrikamart’ Raises US$ 850,000 in Seed Funding

Afrikamart, a Senegalese startup that is using digital technology to transform the value chain of fresh agricultural produce, has raised US$ 850,000 in seed funding from leading venture capital firms such as BLOC Smart Africa - a fund managed by Bamboo Capital Partners, Orange Ventures, Launch Africa, and Teranga Capital.

The financing proceeds will allow the company to increase its purchases from smallholder farmers across the country, as well as efficiently manage the logistics and last-mile delivery of 14 fresh types of vegetables directly to street vendors, small retailers, restaurants, and hotels in Dakar and Mbour.

By doing so, Afrikamart will increase efficiencies, improve market information and trust, increase the diversity and quality of local produce available to consumers, eliminate late payments by intermediaries, reduce waste (up to 50% of fresh produce is typically wasted), and position itself as the buyer and seller of choice for both producers and retailers.

Mignane Diouf, a software engineer, and Albert Diouf, an agricultural commodity trader, co-founded the company in 2018. "We have been overwhelmed by the demand for our solution since launching our small retailer trading programme in late 2021."

"Once we have successfully entered the Senegalese market," said Mignane DIOUF, Founder and CEO of Afrikamart, "we intend to take our tech platform and know-how to other West African countries."

Senegal's annual fresh fruit and vegetable market is half a million tonnes, representing a $1 billion market opportunity. The end-to-end solution provided by Afrikamart allows for the formalization of the fresh food value chain as well as the empowerment of small market operators.

To date, nearly 2,000 farmers have supplied fresh produce to Afrikamart, with up to 10 tonnes delivered daily to 500 regular customers in four Senegalese cities. By the end of the year, the company expects to have onboarded 5,000 farmers and 2,000 retailers.

"Afrikamart is one of Senegal's most innovative and fastest-growing start-ups." Investing in such businesses through scalable technology-led solutions is part of the Bloc Smart Africa fund's DNA, and we are delighted to support this local Agritech local champion for their expansion strategy”.

"We welcome with great pleasure the news of the BLOC Smart Africa Fund's investment in the Senegalese start-up Afrikamart for the needs of its expansion," said Lacina Koné, DG/CEO of Smart Africa.

Senegal's support for the BLOC fund is an additional financing instrument for African start-ups; an instrument that finds all of its relevance in the ambition to build a common African market, and thus to give start-ups, in particular, the means to expand their activities across Africa.