MICROCAPITAL BRIEF: Afrikamart Secures $850k in Equity to Improve Food-delivery Logistics, Boost Purchasing from Smallholder Farmers in Senegal

Afrikamart, a Senegal-based food distribution technology platform, recently secured USD 360,000 from Bloc Smart Africa, an investment fund managed by Luxembourg-based Bamboo Capital Partners, as part of a larger equity package. An additional USD 490,000 in equity is being invested in Afrikamart by Launch Africa, a Mauritius-based venture capital fund; Orange Ventures, the venture capital affiliate of the French telecom Orange; and Senegal-based Teranga Capital.

Founded in 2018, Afrikamart manages fresh food supply chains through a digital marketplace for smallholder farmers, street vendors, restaurants and hotels. Afrikamart intends to use its new funding to increase its purchases from smallholder farmers across Senegal, and “efficiently manage the logistics and last mile delivery of” this produce, including by reducing spoilage and “market asymmetries.” As of June 2022, Afrikamart works with 2,000 farmers across Senegal, facilitating the delivery of approximately 10 tons of food per day to 500 customers in the cities of Dkar and Mbour.

Bloc Smart Africa seeks to “accelerate sustainable socioeconomic development” in Africa by investing in financial technology. The fund is co-sponsored by the governments of Cote d’Ivoire and Luxembourg. Its fundraising goal is USD 100 million.

Founded in 2007, Bamboo Capital deploys investments intended to “generate lasting impact and improve the lives of the world’s most marginalized communities while delivering strong financial returns” in mainly in the following sectors: access to clean energy, access to healthcare, agribusiness and financial inclusion. Since its launch through 2020, the firm raised approximately USD 370 million and had invested in approximately 30 countries.

Established in 2020, Launch Africa is a venture capital fund focused on environmental technologies, financial services and health technologies. As of 2022, the fund backs approximately 108 startups in 21 African countries.

Orange Ventures, founded in 2015, is a venture capital fund focused on technologies such as cybersecurity and financial technology in Africa, Europe and the Middle East. As of 2022, the fund holds assets valued at EUR 350 million (USD 359 million).

Teranga Capital, founded in 2016, provides financial and other support to small and medium-sized enterprises in the Gambia and Senegal. It is funded by private and public actors such as the EU and the Senegal-based telecommunications firm Sonatel.

By Ben Greissman, Research Associate

Sources and Additional Resources

Bamboo Capital Partners press release
https://bamboocp.com/bloc-smart-africa-leads-usd360000-round-in-afrikamart-a-senegalese-leading-agritech-start-up/

Afrikamart homepage
https://www.afrikamart.com

Bloc Smart Africa description
https://smartafrica.org/bloc-smart-africa-impact-fund-launched-with-governments-of-luxembourg-and-cote-divoire-as-anchor-sponsors/

Launch Africa homepage
https://www.launchafrica.vc

Orange Ventures homepage
https://ventures.orange.com

Teranga Capital homepage
http://www.terangacapital.com

Teranga Capital partners page
http://www.terangacapital.com/a-propos-de-nous/#partenaires

Previous MicroCapital article on Bamboo Capital Partners
https://www.microcapital.org/microcapital-brief-public-sector-commits-61m-to-smes-via-bamboo-uncdf-initiative-for-the-least-developed-build-fund/

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