Kenya’s iProcure, A B2B Agritech, Secures $10.2 Million Series B Investment

Kenya’s B2B agritech iProcure has secured an investment of $10.2 million. The Series funding which includes debt of $1.2 million was led by Investisseurs & Partenaires (I&P), and saw the participation of investors like Novastar Ventures, Ceniarth, and British International Investment (BII). Following the round, the total funding raised by the startup comes to a total of $17.2 million.

iProcure helps connect agricultural manufacturers and distributors to local retailers or agro-dealers using its unique infrastructure that create a network between supply chains. The startup has been in operation since 2014 and is currently present in Kenya and Uganda, and is planning to enter the Tanzanian territory thanks to its latest funding. The startup was founded by Stefano Carcoforo, Nicole Galetta, Patrick Wanjohi, and Bernard Maingi.

Speaking on the funding and plans to expand to Tanzania, iProcure’s Stefano Carcoforo who holds the positions of co-founder and chief data and growth officer said that “We have built out a Pan-African distribution infrastructure, and we are using these funds to scale our operations in our two markets and to enter Tanzania. We’re also going to be allocating some of the resources towards introducing higher quality cheaper products that we are sourcing from international players.” He held the position of CEO before he was succeeded by Niraj Varia.

Currently, iProcure connects 5,000 agro-dealers to manufacturers, and thanks to its plans to expand to Tanzania as well as the latest funding, this number is set to grow. The startup also is doubling its distribution miles to 20 as part of its strategy to boost last-mile delivery.

iProcure plans to reach 2 million farmers in the next year, and is looking to be present and accessible to farmers all over Kenya. iProcure offers agro-dealers with an end-to-end Enterprise Resource Planning (ERP) system that helps them manage the sourcing and distribution processes. “The agro-dealers use our technology to keep track of their sales, process sales, to manage inventory, to place orders, and build CRMs that can help deploy loyalty programs to the farmers. It does everything they need. We provide a completely transparent system from the factory all the way down to the point when the farmer purchases the product,” co-founder Stefano Carcoforo explained.

To increase reach, iProcure plans to introduce zero-interest credit facilities to agro-dealers. This will help increase their purchasing power as well as their ability to purchase the hardware needed to use the ERP system.

iProcure has grown 16 times over the last four years and has successfully doubled its revenue every year except for 2020 as a result of the coronavirus pandemic, according to CEO NirajVaria.

iProcure will also provide a buy-now-pay-later service and this is already in the works. This will help bring more retailers to its system as well as provide data needed to inform the company of its growth strategy.  “Work capital is an issue facing these retailers, and we’ve demonstrated that if we provide supplies on a BNPL model, retailers buy 30% more. This shows that retailers themselves are cash constrained and can’t buy all the inventory they can sell; meaning that farmers aren’t able to access all the inputs they need. The BNPL service we are introducing will sort this problem,” CEO Niraj Varia said.