Digital Agriculture & Frontier Markets - 6 Mar
Varaha bags $8.7M for agri-climate tech in India; Zong 4G announces partnership with BaKhabar Kissan in Pakistan; Partech Africa closes fund at $300M
25/02/24
Partech Africa II Fund closes at $300 M
Global technology investment firm Partech has announced the successful completion of fundraising for its second Africa-focused fund, known as Partech Africa II, reaching its targeted hard cap of USD 300 million. The fund, which plans to invest in Series A and B rounds across various sectors with potential to invest also in agritech, has garnered support from a group of 40+ international backers. These range from commercial entities such as South Suez Capital and Bertelsmann to family offices, as well as Development Finance Institutions (DFIs). Among the DFIs involved are lead investor KfW, the German Development Bank, along with the European Investment Bank (EIB), the International Finance Corporation (IFC), a branch of the World Bank Group, FMO, the Dutch entrepreneurial development bank, and British International Investment (BII), the UK’s development finance institution. The team anticipates building a portfolio consisting of 20+ companies across the African continent.
26/02/24
AgroNxt to provide soil testing to DeHaat farmers in India
Indian agritech AgroNxt has partnered with the country’s largest digital agri-food marketplace DeHaat to provide smart soil testing solutions to DeHaat farmers. AgroNext’s smart soil testing device Bhu-parikshak will be available to farmers engaged through DeHaat’s network of 12,500+ DeHaat centers across 15 Indian states. Established in 2012, DeHaat operates through a “phygital” model, supported by its network of DeHaat Centers and 500+ Farmer Producer Organisations (FPOs). According to the latest figures available to ArisTechia, DeHaat has 1.8 million active farmers in 12 states and a network of 2,000 B2B partners, such as agribusinesses, input companies and financial services providers. It has to date raised USD 254.3 million. Founded in 2016, AgroNxt works directly with 52,000 farmers and has performed 255,000+ soil tests, according to its website. Alongside its soil testing product, the startup also offers a farmer app and an agribusiness app.
26/02/24
BaKhabar Kissan partners with MNO Zong 4G to scale up digital agriculture in Pakistan
Pakistan’s mobile operator Zong 4G has announced a strategic partnership with local agritech BaKhabar Kissan to advance the adoption of digital agriculture services for farmers. Zong users will have access to expert agri advisory through BaKhabar Kissan via a dedicated call centre on a per need basis. Alternatively, they will be able to subscribe via SMS to BaKhabar’s services at a cost of PKR 2.5 per day (USSD 0.009). Subscriptions provide personalised agri content (crop and livestock advisory, weather information), and additional information on relevant agri resources and links to an “agri partner” ecosystem. Subscribers can access the service via a dynamic Interactive Voice Response (IVR) channel or the call center. Zong 4G is a 100% owned subsidiary of China Mobile Communications. It has 32+ million 4G subscribers. Established in 2016, BaKhabar Kissan is an agricultural knowledge platform, which includes market linkages for inputs, drone services and hyperlocal weather information enabled by the agritech’s own weather stations. According to its website, it has 8+ million subscribers.
27/02/24
India’s climatetech Varaha bags $8.7M to bring nature-based solutions to farmers
Indian climatetech Varaha has secured USD 8.7 million in a Series A funding round led by RTP Global, with participation from Omnivore, Orios Venture Partners, and Norinchukin Bank. Varaha is a provider of nature-based climate solutions. It focuses on mitigating carbon emissions within India's agricultural sector by enabling farmers to implement regenerative agriculture practices. Founded in 2022, the startup links up farmers with carbon markets globally. It has two main technology-based solutions. One solution uses a digital farmer app and an app for partners (e.g. Farmer Producer Organizations and NGOs) for data inputs, in conjunction with remote sensing and biogeochemical models, to estimate GHG emissions accurately. Another solution uses data inputs from a farmer digital app, in combination with remote sensing and Light Detection and Ranging (LiDAR) AI-ML satellite models, to estimate biomasses and support Afforestation, Reforestation & Revegetation (ARR) practices. Varaha plans to use the funding to strengthen its technology and science function, double its team capacity and advance within the next 18 months its international expansion plans, which comprise East Africa and Southeast Asia.
Photo credit: Deshakalyan Chowdhury / AFP / Getty Images
27/02/24
Startups get $50K cash prize to deploy AI for climate resilience
Four startups were awarded cash prizes and technical assistance as the winners of the Moonshots for Development’s AI for Climate Resilience in Rural Areas Innovation Challenge, an initiative supported by the Asian Development Bank and the International Fund for Agricultural Development (IFAD) with other development organisations. Nigeria-based Agpreneur, Kenya-based Farmer Lifeline Technologies and US headquartered social enterprise Viamo were all awarded USD 50,000 funding from IFAD. Viamo, which presented a voice companion powered by Generative AI, also received sponsorship by the WFP Innovation Accelerator for participating in its Sprint Programme. In addition to the cash prize, Agpreneur and Farmerline are set to benefit from technical assistance from CGIAR and an opportunity to receive a further USD 10,000 in equity-free grant funding. Agpreneur uses AI to boost climate-resilient farming, optimising resource use and enhancing crop management for yield prediction, while Farmer Life Technologies uses proprietary AI devices that are able to detect and predict crop pests and pathogens. The fourth winner, India’s Boomitra, was awarded USD 50,000 from Asian Development Bank for piloting their proposed solution as part of ADB’s operations in the member countries. Boomitra operates an international soil carbon marketplace, where farmers are rewarded for the adoption of improved, regenerative agriculture practices through the incentive of carbon credits.
28/02/24
GSMA awards 11 grants to startups working at the intersection of agri and climate
The GSMA has awarded eleven new grants to startups selected for the second cohort of its Innovation Fund for Climate Resilience and Adaptation 2.0. The fund is designed to accelerate the testing, adoption and scalability of digital innovations that enable the world’s most vulnerable populations to adapt to, and absorb the negative impacts of climate change, or strengthen biodiversity. Grantees, which all work at the intersection of agri/foodtech and climatech, will receive grant funding of GBP 100,000-250,000 over 15-18 months, in addition to tailored technical assistance. Regenerative agriculture is a main area of focus for the fund, with six out of eleven awardees working in this area: Crop2X (Pakistan), Monsoon Tea Company (Thailand), SenzAgro (Sri Lanka), Bizytech (Tanzania), Sommalife (Ghana), and Ujuzi Kilimo (Kenya). The fund will also work with startups developing solutions for fisheries and coastal preservation (HydroNeo, Thailand and InQube, India), for food loss and waste (Farm to Feed, Kenya and Pricepally, Nigeria) and pastoral agriculture (Aloi, Nepal). The initiative is funded by the UK Foreign, Commonwealth and Development Office (FCDO) and The Swedish International Development Cooperation Agency (Sida).
29/02/24
Details emerge on AgBase data and intelligence platform
More details on the anticipated launch of AgBase have emerged during Sankalp Africa Summit, which took place last week in Nairobi. AgBase is a new data and intelligence platform that aims to increase investment and innovation in foodtech, agritech and related sectors, such as climate and finance, across emerging markets. It is a multi-year programme hosted by Briter Bridges and Mercy Corps and funded by the Bill and Melinda Gates Foundation and the Foreign Commonwealth and Development Office (FCDO). Key components of the platform are data (e.g. up to date information on innovations, active funders, deal flow data), intelligence (e.g. innovation maps, industry reports, case studies), and knowledge sharing and dissemination (events). In addition, AgBase funders and implementers also aim to advance a standardised impact metric system for the benefit of the broader ecosystem.
While its mandate will be global, the AgBase data and intelligence platform will have a specific focus on Africa where the largest number of underserved smallholder farmers are. The funders and implementers of AgBase aim to develop a scalable and commercially sustainable platform that connects investors and innovators to information, research, and market insights.
29/02/24
ABC Fund II targets scale up investments, Indian agritechs in target
After announcing in January the first closing of its second fund at USD 500 million, Impact investment firm ABC Impact said that about a third of new investments will focus on India. The firm aims to eventually raise a corpus of USD 650-750 million by the end of this year. According to reports, the fund will support companies seeking Series B funding and beyond with USD 10-45 million ticket sizes. ABC Impact, which has invested in Indian agritech CropIn, an AI and data driven software as service (SaaS) agritech, is a Singapore-based and Asia-focused private equity fund. It invests in companies that drive positive change addressing challenges such as financial and digital inclusion, better health and education, climate and water solutions, and sustainable food and agriculture.
05/03/24
ADB Ventures targets $200M to support early stage climate techs in APAC
ADB Ventures, the Asian Development Bank’s (ADB) facility to scale technology solutions for impact in Asia and the Pacific, is seeking to raise USD 200 million for a new fund that will bolster climate-focused startups across Asia, advancing sustainable development and climate resilience. The Ministry for Foreign Affairs of Finland has already committed EUR 20 million (USD 21.7 million). Dubbed ADB Ventures Investment Fund 1A, the new fund aims to expand upon the its predecessor, which closed at USD 60 million in 2020. It will support with patient capital early-stage companies at pre-Series A and Series A in sectors such as cleantech, agritech, fintech, and healthtech. It will focus on gender equality and sustainable economic growth.