B2B food distribution company Twiga Foods has proved that local startups can raise a lot of money and offer a ton of other services besides their main operation.
In 2017, the company raised KES 1.5 billion, with the lead investor being Wamda Capital.
The following year, the company announced that it would leverage blockchain tech to offer micro-loans to Kenyans.
In 2019, the company appointed a new CE, Peter Njonjo.
A couple of months later, Twiga Foods raised KES 3 billion in a Series B round. The funds were used to expand the firm’s operations.
Today, the company, which started its operations back in 2014 by applying technology to build food supply chains has closed $50 million in a Series C round, led by Creadev. TLcom, IFC Ventures, DOB Equity, and Juven contributed to the drive too.
A statement from the company says that the funds will be used to expand its operations in the country.
A statement by CEO Peter Njonjo to Techcrunch reveals that Twiga Food is selling itself as a ‘one-stop-shop for the informal retailer and all their needs.’
Twiga Foods has also revealed that it has more than 100K customers who use its services in the country.
The company says it delivers more than 600 metric tons of produce to 10K retailers on a daily basis.
“For us, it’s choosing value chains where you can manage the traceability issue while there are some value chains that will be harder to manage,” says Peter Njonjo, “The key thing is that we now have a more blended approach. It’s not just about working with small farmers; we still work with them but on some value chains. But we’re looking at having large commercial farms integrated into our supply chain.”
Part of the funds will also be used to develop a proof of concept that will see Twiga Foods find other ways of producing food in Africa.
Before the end of 2021, Twiga Foods will also use the funds to launch affordable manufactured food and non-food products under its brand.
Twiga plans to raise more money in 2022. If successful, the firm will expand to Cote d’Ivoire, DRC Congo, Ghana, and Nigeria.