Ag marketplaces & fintech: the new driving force behind african agrifoodtech investment in 2024

Por Agroempresario.com

Startups in the Ag Marketplaces & Fintech category are dominating the African agrifoodtech investment landscape in 2024, raising $65 million—41% of the total funding on the continent to date, according to the AgFunder Africa Agrifoodtech Investment Report 2024. This surge in capital signals the increasing influence of digital platforms in reshaping agriculture and food distribution across Africa.

Kenya emerged as the top performer, securing 62% of the category’s funding with $40 million spread across eight deals, representing 47% of the total deal count. Startups in this category are proving pivotal by streamlining processes, eliminating middlemen, and improving the flow of goods and services between farmers, retailers, and consumers.

These digital platforms offer a wide range of financial and operational solutions, including credit access, real-time market data, weather updates, and efficient payment systems, all accessible through unified interfaces. This technological transformation allows farmers to increase productivity while giving consumers direct access to agricultural products, fostering a more efficient supply chain.

Investment Trends and Market Context

Ag Marketplaces & Fintech’s dominance is not new—it also led investment in 2023, capturing 27% of total funding and 17% of deals despite a 60% year-over-year drop in funding. This decrease, however, aligns with a broader 62% reduction in agrifoodtech investments across the continent.

Over the last decade (2014–2023), the category recorded 198 deals—21% of all deals—making it the leader in transaction volume. In terms of capital raised, it ranks second with $544 million (24% of the $2.2 billion total), behind only Midstream Technologies, which raised $579 million (26%).

Kenya has been the dominant player over the past 10 years, raising $335 million (62%) across 74 deals (37%). Nigeria follows with $102 million (19%) from 42 deals, and Ghana with $29 million (5%) from 20 deals.

Top Ag Marketplaces & Fintech Deals of 2024

1. Pula Advisors – $20 million Series B: Kenyan provider of digital agricultural insurance for smallholder farmers, backed by investors such as BlueOrchard, IFC, and the Bill & Melinda Gates Foundation.
2. Apollo Agriculture – $10 million debt deal: Kenya-based startup offering agricultural inputs, financing, and advisory services.
3. Complete Farmer – $9 million Series A: Ghanaian platform connecting farmers and buyers directly, bypassing middlemen.
4. WARC Group – $7.5 million Series B: Operating in Ghana and Sierra Leone, WARC supports over 22,000 farmers through trade hubs and consultancy services.
5. YoLa Fresh – $7 million seed round: Moroccan startup leveraging data to revolutionize traditional agricultural distribution models.

As Ag Marketplaces & Fintech continue to attract the lion’s share of investment in 2024, these platforms are reshaping Africa’s agricultural economy, making operations more transparent and cost-effective. With Kenya at the forefront, the trend highlights the potential of digital innovation to enhance productivity and address long-standing inefficiencies in the agrifood sector.

The focus on fintech-enabled solutions and marketplace-driven ecosystems suggests that Africa’s agricultural future lies in leveraging technology to empower both farmers and consumers, promoting economic growth across the continent.