Introduction
Crop2Cash, a Nigerian agtech startup dedicated to enhancing the livelihoods of smallholder farmers, has secured a significant investment of USD 350,000 from Village Capital. This investment, part of Village Capital’s Reducing Inequalities Investment Facility supported by FMO’s Micro and Small Enterprise Fund (MASSIF), aims to promote financial inclusion and empower smallholder farmers across Nigeria.
Validation of Impactful Approach
Michael Ogundare, Founder of Crop2Cash, expressed enthusiasm about the investment from Village Capital, highlighting its validation of Crop2Cash’s innovative approach in addressing critical challenges faced by smallholder farmers in Nigeria.
“We are thrilled to receive this investment from Village Capital, which validates our approach to addressing the critical challenges smallholder farmers face in Nigeria. By leveraging our unique technology and strategic partnerships, we are revolutionising financial inclusion and providing smallholder farmers with the comprehensive support they need to grow their businesses and improve their livelihoods. This funding will accelerate our efforts to build a more sustainable and equitable future for African agriculture,” Ogundare remarked.
Village Capital’s Commitment to Reducing Inequalities
Kavon Badie, Investment Officer at Village Capital, underscored the significance of supporting initiatives that uplift rural livelihoods and create opportunities for inclusive growth.
“For the Reducing Inequalities Initiative, we are looking for companies that create opportunity and improve the quality of life for rural livelihoods,” shared Badie. “Crop2Cash is doing this for thousands of smallholder farmers in Nigeria by enabling financial inclusion and access to essential services required for farmers to grow their businesses and thrive. We are excited to partner with Michael and the Crop2Cash team as they scale this impact to more smallholder farmers.”
Addressing Financial Exclusion in Agriculture
Crop2Cash has positioned itself at the forefront of addressing financial exclusion among smallholder farmers in Nigeria. Despite agricultural finance growing annually by 35%, traditional banks allocate less than 5% of their loan portfolios to this vital sector. Smallholder farmers often face exclusion due to stringent collateral requirements, inadequate risk assessment frameworks, and a lack of accessible banking infrastructure in rural areas.
Transformative Technology for Farmers
Through innovative use of technology, Crop2Cash has simplified financial access for smallholder farmers. Farmers can now open bank accounts within minutes using basic feature phones and USSD technology, bypassing traditional barriers that hinder financial inclusion. This seamless approach empowers farmers to manage transactions, access credit, and secure insurance directly from their mobile devices.
Comprehensive Agricultural Solutions
Beyond financial services, Crop2Cash integrates a marketplace for farmers to procure high-quality agricultural inputs and digitally connect with agro-processors and suppliers. This digital ecosystem enhances market access, fosters agricultural efficiency, and integrates farmers into the broader digital economy. Crop2Cash’s holistic approach aims to create a sustainable agricultural sector that benefits farmers, stakeholders, and the economy at large.
Future Outlook
With the support of Village Capital’s investment, Crop2Cash is poised to expand its impact, scale its operations, and reach more smallholder farmers across Nigeria. The partnership reflects a shared commitment to driving transformative change in African agriculture, paving the way for enhanced productivity, resilience, and prosperity among rural communities.
