Kenyan startup iProcure raises Ksh.1.2B funding

The startup seeks to revolutionise traditional agricultural supply chains by developing its own distribution infrastructure which connects major agricultural input suppliers directly to local agro-dealers.

Through its proprietary distribution technology system, iProcure eliminates the agricultural supply chain middlemen. 

The system also gives insights on supply levels and price, as well as ensuring the availability, quality, and delivery of agricultural inputs like fertilisers and seeds at prices 75% of the market prices.

iProcure’s latest round was led by impact investor Investisseurs & Partenaires (I&P) and also saw participation from Novastar Ventures, British International Investment (BII), and Ceniarth.

This brings the total funding raised by iProcure since it was founded in 2014 to Ksh.2 billion (US$17.2 million).

The B2B agtech was cofounded by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi and Bernard Maingi. Carcoforo is the company’s former CEO and has since been replaced by former Novastar Ventures partner Niraj Varia.

Speaking after the round's  closure, Carcoforo, who is now iProcure’s chief data and growth officer, revealed that the company is also eyeing an expansion into Tanzanian and Ugandan markets.

“We have built out a Pan-African distribution infrastructure, and we are using these funds to scale our operations in our two markets and to enter Tanzania. We’re also going to be allocating some of the resources toward introducing higher-quality cheaper products that we are sourcing from international players,” said Carcoforo.

On her part, Varia said the new capital will also go towards expanding the startup’s product range to include Buy-Now-Pay-Later (BNPL) services.

“In addition to bolstering our existing operations with more warehouses and delivery vehicles, this funding will expand iProcure’s product offering to include credit services and a new POS system for agro-dealers to better forecast their inventory needs and reduce pilferage within their shops,” said Varia.

Currently, iProcure connects 5,000 agro-dealers and claims a reach of over 1,000,000 Kenyan farmers.

The company says it has grown 16x over the last four years, doubling its revenue every year, except for 2020 due to COVID.