Emata leverages innovative technology to provide affordable digital financing solutions for East African farmers.
Ugandan agritech firm Emata has successfully raised USD 2.4 million in seed funding, with USD 800,000 in equity and USD 1.6 million in on-lending capital. This fundraising effort was supported by prominent investors, including African Renaissance Partners, Norrsken Accelerator, Zephyr Acorn, Swedish angel investor Marcus Boström, and the Draper Richards Kaplan Foundation. This significant financial injection underscores the potential of Emata’s digital agri-loan model in East Africa and beyond.
Bram van den Bosch, Founder & CEO of Emata, expressed enthusiasm about the successful seed fundraising, stating, “We are thrilled to complete our USD 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.”
Emata – Addressing the agricultural finance gap
Emata, founded in 2020, is pioneering digital agri-financing solutions in East Africa. The company leverages technology and strategic partnerships with agricultural cooperatives to offer farmers accessible and affordable digital financing options. Unlike traditional collateral-based lending, Emata relies on alternative credit scores derived from data points such as a farmer’s delivery history. This innovative approach reduces costs and makes lending to smallholders up to five times more affordable compared to informal loans.
Expanding reach and impact
With the new funding secured, Emata is poised to expand its agri-loan offerings across East Africa, focusing on core markets like dairy and coffee. Uganda serves as its debut market, with plans for imminent international expansion, most likely into Tanzania. Emata’s multi-crop portfolio includes operations in oilseeds and maize, and further expansion into potatoes is anticipated.
Digitizing the agricultural value chain
Emata has fully digitized the lending process and integrated itself into the agricultural value chain through partnerships with cooperatives and farmer-based organizations. These collaborations facilitate rapid scalability while also mitigating business risks by ensuring direct repayment sources, as loan repayments are managed by Emata’s partners. By addressing the financing challenge, Emata empowers farmers to boost productivity, increase income, and enhance food production.
Impressive growth and impact
In 2022, Emata achieved remarkable growth, experiencing a sevenfold increase year-on-year. The company is currently collaborating with 50 agricultural partners, impacting over 40,000 individual farmers, and has disbursed USD 1 million in loans.
Emata’s innovative approach to agricultural financing not only aligns with the growing digitization trends in East Africa but also promises to improve the livelihoods of countless farmers in the region.
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