Kenya-based startup Twiga Foods has raised $23.75 million in a Series B equity round led by Goldman Sachs, with participation from existing investors, including Wamda Capital, the International Finance Corporation, TLcom Capital, and Creadev. This is Goldman Sachs’ first major investment in a Kenyan technology company. An additional $6 million in debt was raised from OPIC and Alpha Mundi.
This Series B round of financing will enable the business to expand its operations and geographic footprint as well as continue to develop its proprietary technology platform. “Africa’s domestic food production and distribution ecosystems [makes for] a $300 billion informal and fragmented market that is estimated to grow to $1 trillion by 2030. With the support of our investors, we are developing technology-driven commercial solutions and cooperating with existing industry players to solve the challenge of food security in Africa,” said co-founder and chief executive officer Peter Njonjo.
Founded in 2014, Twiga Foods drives the creation of efficiency in East Africa’s agricultural supply chain by deploying a technology-driven logistics platform that directly connects farmers and retailers, and disintermediating the marketplace for agricultural produce. Wamda Capital’s continued investment in Twiga Foods is part of the firm’s strategy to back businesses that are redefining traditional industries.
The firm first invested in Twiga in 2017 and then again in 2018 alongside other investors such as the International Finance Corporation (IFC), TLCom Capital, DOB Equity. Given Wamda Capital’s unique experience of investing and operating logistics as well as marketplace businesses, the firm has been deeply engaged with Twiga Foods in driving the growth of the business.
“It has been a true privilege working with Peter and the team at Twiga and we are excited to continue the journey going forward. One of the most remarkable aspects of Twiga’s offering is the validation that we can help build highly successful businesses that drive real impact in the communities in which they operate,” said Fadi Ghandour, executive chairman of Wamda.
Twiga currently works with over 17,000 producers and delivers three times a week, on average, to 8,000 retailers. Earlier this year, the company welcomed co-founder Peter Njonjo in his new appointment as CEO. Njonjo stepped down as president of Coca-Cola’s West and Central Africa business to take on his new role at Twiga.