(Ecofin Agency) – This is the first significant fundraising the agritech is organizing in ten years of operations.
Ghanaian startup Farmerline, which facilitates access to fertilizers for smallholder farmers, secured US$12.9 million in funding from a consortium of investors.
In an announcement published on its LinkedIn page today (April 26), the agritech startup explains that the funds were raised during a pre-Series A investment co-led by African impact fund Acumen Resilient Agriculture Fund (ARAF) and Dutch development finance bank, FMO. US$6.4 million is provided as equity investment and US$6.5 million as loan.
With the funds raised, the startup founded in 2013 by Ghanaian Alloysius Attah and Emmanuel Owusu Addai will boost its operations and expand into Côte d’Ivoire.
“We’re honored to co-lead this investment round in Farmerline with FMO […] This is an invaluable addition to ARAF’s portfolio and we look forward to supporting Farmerline’s local and regional growth,” commented Tamer El-Raghy, Managing Director of ARAF.
According to the FMO, “the US$6.4 million Pre-Series A investment […] is Farmerline’s first equity raise since launching with a US$600 grant almost a decade ago.”
With this new investment, Farmerline will use artificial intelligence to help boost the revenues of Ghanaian agribusinesses and farmers by facilitating their access to fertilizers, equipment, and global markets. The company will also invest in infrastructure and logistics, and deepen its relationships with partners in Côte d’Ivoire to increase its userbase to 300,000 this year.
According to FMO, Africa’s agribusiness sector is expected to reach $1 trillion by 2030. “But the continent will need eight times more fertilizer and six times more improved seeds to realize its full agricultural potential.”