Emata, the agricultural finance solution for East African farmers, has completed a $2.4 million seed fundraise, comprising $800,000 in equity and $1.6 million in on-lending capital.
African Renaissance Partners, Norrsken Accelerator, Zephyr Acorn, angel investor Marcus Boström, and the international venture philanthropy firm Draper Richards Kaplan Foundation participated in the fundraising.
Through its collaborations with cooperatives and farmer-based groups, Emata is integrated into the agricultural value chain and has fully digitalized the lending process, both of which facilitate quick expansion.
As loan repayments are deducted by Emata’s partners on its behalf, these relationships help reduce the risk associated with the company’s business strategy. Emata helps farmers boost productivity, revenue, and food production by addressing the funding issue.
Emata experienced a 7x increase in growth year over year in 2022. It currently has 50 agricultural partners, serving over 40,000 individual farmers, and has granted $1 million in loans.
Bram Willem van den Bosch, Founder & CEO of Emata, said: “We are thrilled to complete our $2.4 million seed fundraise, backed by high-profile, impact-oriented investors who recognize the huge potential of digital agri-loans in East Africa, and beyond. Emata dares farmers to dream big and eliminates traditional obstacles that have made agricultural finance unavailable for the vast majority. Our solution turns a lifelong struggle into a five-minute process, and is already tangibly impacting thousands of East African farmers.”
With the money, Emata will be able to offer agri-loans across all of East Africa, including its inaugural market of Uganda and an impending international expansion, most likely into Tanzania.
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