By Mark Kawalya
Emata, an agritech startup in Uganda, has raised $2.4 million in seed funding, marking an important turning point in the company’s mission to revolutionize agricultural finance in East Africa. The funding was provided by a group of renowned investors committed to empowering farmers through digital agri-loans. Of this, $800,000 is in equity and $1.6 million is in on-lending capital.
Emata’s vision is shared by a consortium of investors with the goal of supporting positive change in the agricultural sector. African Renaissance Partners, a well-known venture capital company committed to assisting businesspeople in East Africa and the Horn of Africa, is leading the investment effort.
They are joined by Zephyr Acorn, a major supporter of early-stage internet companies in East Africa, and Norrsken Accelerator, the investment arm of Europe’s largest impact tech ecosystem.
Marcus Boström, a well-known Swedish angel investor, and the Draper Richards Kaplan Foundation, a prominent global venture philanthropy organization, both took notice of Emata’s fundraising efforts. This diversified array of supporters demonstrates how widely acknowledged Emata’s potential to completely transform agricultural financing has bcome.
Emata’s founder and CEO, Bram van den Bosch, expressed his excitement over the successful seed funding by saying, “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.”
According to consultant firm Dahlberg, Sub-Saharan Africa has a staggering $240 billion worth of unmet agricultural financing needs. Emata serves a $13 billion market by concentrating on the East African geographical area. The company, which was established in 2020, uses technology and collaborates with farming cooperatives to give farmers easy access to digital funding. Emata uses alternative credit scores based on data points like a farmer’s delivery history in place of conventional collateral requirements.
Emata is prepared to increase the availability of its agri-loan products throughout East Africa with this new cash infusion. The growth will include its first overseas venture, with Tanzania looking like the most likely location, as well as its home market of Uganda.