B2B E-Commerce company Twiga Foods has announced it will invest upto $10 Million into a new subsidiary that is primarily focused on modern and commercial farming.
Dubbed Twiga Fresh, the new subsidiary seeks to help scale the production of domestic horticultural staples like onions, tomatoes and watermelons.
In a statement, Twiga says the investment in Kenya will make this one of the largest single horticultural farms in Africa, focused purely on the domestic market.
In the long term, the new subsidiary will be funded through debt in partnership with Development Financial Institutions, focused on primary agriculture and food security.
“The commodity driven volatility in the world today is causing an unprecedented level of food inflation across the world. In Africa, we can least afford this disruption, and that is why we are excited about the imminent impact our technology-enabled supply chain will have in reducing the cost of food,” says Peter Njonjo, CEO and Co-Founder of Twiga.
The launch of the new unit comes after the Kenyan agri-tech firm in November last year raised US$50 Million in a Series C round to scale its efforts in Kenya and other neighbouring countries.
While Twiga has been connecting vendors and outlets with farmers via an app to access different agricultural produce, this strategy has since changed. Three years ago, the firm began to connect Fast Moving Consumer Goods (FMCG) and manufacturers with retailers in Kenya in a bid to increase revenue.
Twiga has also rolled out low-cost manufactured food and non-food products under its brand.