Winich Farms, a fast-growing agritech startup based in Nigeria, has successfully raised $3 million in a pre-series A funding round to further expand its operations and enhance its technological infrastructure. Founded in 2020 by brothers Riches and Winner Attai alongside Chichebem Jibunoh, the company is at the forefront of transforming Nigeria’s agricultural sector by connecting smallholder farmers to retail markets. This new funding will be instrumental in accelerating the company’s growth as it seeks to streamline its logistics and improve access to financial services for rural farmers.

The Funding Round

The $3 million pre-series A round was led by Acumen Resilient Agriculture Fund (ARAF), a key player in promoting sustainable agricultural development. ARAF contributed $2.5 million, with additional participation from notable investors such as Climate Resilient Africa Fund, Marula Square, Plug and Play Tech Centre, and Tekedia Capital. Additionally, Sahel Capital provided $590,000 in debt financing, further solidifying the company's financial position.

This is Winich Farms' second significant funding round in two years, reflecting investor confidence in its unique business model and growth potential. With the support of its investors, the company plans to expand its order fulfillment infrastructure and improve its proprietary technology, enabling faster and more efficient operations.

A Mission to Empower Farmers

Winich Farms was created with a clear goal: to empower rural farmers by helping them sell their agricultural produce to retailers and other off-takers. The startup operates through a decentralized system of agents, who facilitate transactions between farmers and buyers. The process is straightforward—when a retailer places an order, the request is passed to agents who source the produce from local farmers, bringing it to designated collection points for shipment.

This model not only ensures that farmers are paid fair prices for their crops but also creates a more efficient distribution chain. Winich Farms has achieved a remarkable gross merchandise value (GMV) of $30 million and processes orders worth up to ₦3.7 billion ($2.2 million) each month. The company has experienced exponential growth, increasing its number of agents from 1,000 in 2022 to over 4,000 in 2024.

Expansion Plans and Challenges

Despite its impressive growth, Winich Farms faces challenges with its current model. One key issue is the geographical disparity between its farming partners, who are primarily based in northern Nigeria, and its customer base, which is spread across the country. This logistical hurdle slows down delivery times, particularly for customers in southern states such as Lagos.

To address this, Winich Farms plans to establish fulfillment centers across Nigeria’s six geopolitical regions. These hubs will act as regional distribution points, significantly reducing delivery times for customers and allowing the company to serve more retailers more efficiently. The debt financing from Sahel Capital will be used to lease the necessary infrastructure for these fulfillment centers, laying the groundwork for quicker and more seamless operations.

Technological Advancements and Financial Inclusion

Beyond logistics, the new funding will also be used to scale the company’s technology platform, which facilitates the ordering and payment process for its customers and agents. Winich Farms operates a mobile app that allows retailers to place orders, and agents use this platform to manage transactions with farmers. The company’s commitment to technological innovation ensures that its growing agent network can handle increasing demand without sacrificing efficiency or transparency.

An essential part of Winich Farms' mission is promoting financial inclusion among rural farmers. Many of these farmers are underbanked or have limited access to formal financial services. To remedy this, Winich Farms has partnered with Sterling Bank to issue Verve cards to farmers who complete a minimum of three supply cycles. These cards allow farmers to receive payments directly into their accounts, bypassing the need for cash transactions and reducing financial risks.

With the new funding, the company plans to scale this card distribution program, aiming to issue 195,000 Verve cards in the coming months. This initiative not only improves financial security for farmers but also helps integrate them into Nigeria’s broader economy, where access to digital financial services is increasingly crucial.

Competition and Market Position

Winich Farms operates in a highly competitive sector, with several other agritech startups vying for dominance in Nigeria's agricultural landscape. Companies like ThriveAgric, AgroMall, and Zowasel also aim to bridge the gap between smallholder farmers and markets. However, Winich Farms has carved out a unique position by focusing on decentralized collection points and leveraging its network of community agents to ensure rapid order fulfillment.

The company’s focus on providing fair prices to farmers, coupled with its commitment to improving the livelihoods of rural communities, has helped it build a strong reputation among both farmers and retailers. According to Riches Attai, the company’s CEO, their growth is a direct result of increasing the number of agents on the platform, which has led to faster order processing and higher customer satisfaction.

Winich Farms' recent $3 million funding round marks a pivotal moment in the company’s journey to revolutionize Nigeria’s agricultural sector. By expanding its fulfillment centers and enhancing its technology, the company is well-positioned to meet growing demand while continuing to support smallholder farmers across the country. As it scales its operations and extends financial inclusion initiatives, Winich Farms is set to remain a key player in Nigeria’s burgeoning agritech space. The company's focus on innovation and sustainability, combined with strong backing from investors, will likely fuel its continued success in the coming years.