Twiga Foods, the Kenyan business-to-business food supplier, has raised $10.3 million (about Sh1 billion) through debt and equity instruments.
The funding round Series A was led by Wamda Capital and includes Omidyar Network, DOB Equity, Uqalo, 1776, Blue Haven Initiative, Alpha Mundi and AHL.
The firm founded in 2014 said the investment will enable it to increase the number of vendors it serves daily in Nairobi, diversify its product portfolio and introduce advanced supplier services.
“Twiga is an outcome of the Nairobi startup ecosystem, the years of investments that have gone into developing talent, supporting hubs, and attracting capital to the market,” said Grant Brooke, cofounder of Twiga Foods.
The company uses technology to save urban retailers a trip to the market by delivering to their doorstep “better quality and better priced stock”.
Twiga then translates this collective purchasing power to farmers across the country allowing them to access stable markets at better prices, while minimising post-harvest losses through efficient logistics.
Twiga says it is the largest distributor of several basic food staples in Kenya, having sold over 55 million bananas and delivering over 4,000 orders a week.
“Twiga represents our first investment in East Africa, a new geography for us in which we plan on being increasingly more active. We are particularly excited in beginning our investment program in East Africa by supporting this remarkable set of entrepreneurs building a truly disruptive business,” said Mr Fadi Ghandour, chairman of Wamda Capital, who will be joining the Twiga board.
“Drawing on our experience in the logistics and supply chain space, we believe Twiga has developed a unique solution to address the inherent inefficiencies in the delivery of fresh produce in East Africa with significant positive impact for both producers and consumers.”
In additional to the Series A round closing, Twiga closed some $2 million (about Sh207 million) in grant funding from USAID, GSMA, and others to support bolt-on farmer services, financial inclusion, and first of their kind domestic food safety initiatives.