- Village Capital invested $350,000 in Crop2Cash to boost its digital payment platform.
- The funding will help the startup company expand services like banking, credit, and insurance for farmers.
- With this support, Crop2Cash intends to empower more smallholder farmers in Nigeria.
Village Capital has announced a $350,000 investment in Crop2Cash, a Nigerian agtech startup. As part of Village Capital’s program, the investment’s goal is to help small businesses, promote financial inclusion and drive positive change.
Michael Ogundare, the Founder of Crop2Cash, expressed excitement about this development. He stated, “We are thrilled to receive this investment from Village Capital. This support confirms our strategy to tackle the significant challenges smallholder farmers face in Nigeria.”
He added, “Our innovative technology and strategic partnerships are improving financial inclusion for these farmers. This funding will further accelerate our mission to provide comprehensive support, helping farmers grow their businesses and improve their livelihoods. We are committed to building a more sustainable and equitable future for African agriculture.”
Crop2Cash Approach: Tackling Financial Exclusion in Agriculture
Crop2Cash is leading the effort to combat financial exclusion among smallholder farmers in Nigeria. The startup offers a comprehensive solution, giving farmers access to banking, credit, agricultural inputs, warehousing, and insurance through a single platform.
Although agricultural finance grows by 35% annually, traditional banks allocate less than 5% of their loans to this crucial sector. Smallholder farmers often face exclusion due to strict collateral requirements, poor risk assessment frameworks, and limited banking infrastructure in rural areas.
To overcome these hurdles, Crop2Cash uses innovative technology to make financial services accessible. Farmers can now quickly open bank accounts and manage transactions using basic mobile phones and USSD codes. Such a seamless approach enables farmers to manage transactions, access credit, and secure insurance directly from their mobile devices.
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In addition to financial solutions, Crop2Cash integrates a marketplace for farmers to buy quality agricultural inputs and connect digitally with agro-processors and suppliers. Consequently, the digital network improves market access, boosts agricultural efficiency, and integrates farmers into the broader digital economy. Crop2Cash’s comprehensive strategy aims to create a sustainable agricultural sector that benefits not only farmers but also stakeholders and the economy as a whole.
The Investment: Village Capital’s Commitment to Reducing Inequalities
Village Capital’s investment in Crop2Cash is part of its Reducing Inequalities Investment Facility. It’s an initiative supported by FMO’s Micro and Small Enterprise Fund (MASSIF), which focuses on promoting financial inclusion.
Kavon Badie, an Investment Officer at Village Capital, emphasised the importance of supporting ventures that enhance rural livelihoods and foster inclusive growth. He noted, “For the Reducing Inequalities Initiative, we seek companies that create opportunities and improve the quality of life for those in rural areas.”
Badie highlighted the company’s impact, stating, “Crop2Cash provides financial inclusion for thousands of smallholder farmers in Nigeria. They enable access to essential services, helping farmers expand their businesses and improve their lives. We are thrilled to partner with Michael and his team to scale this positive impact to more farmers.”
To date, Crop2Cash has made substantial progress in the agtech sector as a one-stop solution for seamless access to financial services, reliable inputs, and insurance. The startup has unlocked $2.8 million in credit for smallholder farmers and supported 400,000 farmers who have accessed its platform.
