Kenyan online grocery platform Greenspoon is looking to raise Sh638.7 million ($5 million) in capital to facilitate its expansion in the country and other African markets, stiffening competition for Twiga foods and other online retail stores.
The company's fundraising plans have been disclosed by corporate advisory firm Bravura Holdings, which says it will help the retailer get investors to back its growth ambitions.
“Greenspoon, a Kenyan online grocery platform, is targeting a USD 5 million Series A capital raise this year… Bravura Capital has been mandated to advise Greenspoon on the transaction,” the statement read.
“It will use the proceeds of the fundraiser to expand its offering in Kenya and further African geographies.” Bravura is a South African firm offering services in capital raising, wealth creation and planning, mergers and acquisitions among others.
The company has advised on several transactions including Pan African IX (PAIX) Data Centres on their Series B expansion equity raise to fund its medium-term roll-out programme.
The firm has also advised in mergers and listing of companies on the Johannesburg Stock Exchange (JSE) and Alternative Exchange of the JSE.
Greenspoon is looking for financial investors to subscribe for an unspecified minority equity stake in exchange for the funds, according to the chief executive officer Alexander Osinga.
“It has previously raised growth capital from a consortium of Dutch investors, including investment group, The Blue Link,” the statement read in part.
Africa has attracted venture capitalists looking to invest in startups in previously underserved and fast-growing sectors of the economy.
Greenspoon joins other Kenyan firms that are raising capital for expansion including insurtech Lami which raised $3.7 million seed extension led by Harlem Capital. Other e-commerce firms that have raised billions of shillings are Copia and Twiga Foods.
Greenspoon sells dairy products, meat, plant-based alternatives, fruits and vegetables, ready-to-eat meals, drinks, and homeware among others.
Some of the producers the firm has worked with include Bio foods, Meadow Organic Farms, Vegan World, AAA Growers, Peppertree restaurant, Bila Shaka Brewery and Farmer Max Chicken.
