MICROCAPITAL BRIEF: Afrikamart secures $850,000 in equity to improve food delivery logistics and boost purchases from smallholder farmers in Senegal

Afrikamart, a Senegal-based food distribution technology platform, recently secured $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 amount of USD 490,000 in equity is invested in Afrikamart by Launch Africa, a Mauritius-based venture capital fund; Orange Ventures, the venture capital arm of French telecommunications company Orange; and Teranga Capital, based in Senegal.

Founded in 2018, Afrikamart manages fresh produce 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 “effectively manage the logistics and last mile delivery” of these products, including reducing spoilage and “asymmetries of the market”. Since June 2022, Afrikamart has been working 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 socio-economic development” in Africa by investing in financial technology. The fund is co-sponsored by the governments of Côte d’Ivoire and Luxembourg. Its fundraising goal is $100 million.

Founded in 2007, Bamboo Capital deploys investments designed to “generate lasting impact and improve the lives of the world’s most marginalized communities while delivering strong financial returns” primarily in the following sectors: access to clean energy, access to healthcare, agribusiness and financial inclusion. From launch through 2020, the company has raised around $370 million and invested in around 30 countries.

Created in 2020, Launch Africa is a venture capital fund focused on environmental technologies, financial services and health technologies. In 2022, the fund supports around 108 startups in 21 African countries.

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

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

By Ben Greissman, Research Associate

Sources and additional resources

Bamboo Capital Partners press release

Afrikamart homepage

Description of the Smart Africa Block

Launch Africa homepage

Orange Ventures homepage

Teranga Capital Home Page

Teranga Capital Partners Page

Previous article by MicroCapital on Bamboo Capital Partners

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