Twiga Foods, a Kenyan agri-tech startup, has recently secured an undisclosed amount of funding in a bid to settle debt and continue scaling its food solutions across Africa. This funding round saw participation from several investors, including the French investor Creadev and Goldman Sachs’ spinoff Juven.
CEO and Co-Founder Peter Njonjo emphasized that the undisclosed funding round represents the culmination of a strategic transformation within Twiga. The startup’s revised approach and strategy have not only bolstered cost efficiency but also led to improved service delivery for its customers.
Twiga Foods started its operations in 2014, applying technology to build efficient food supply chains. The company has developed a business-to-business marketplace platform that sources produce directly from farmers and delivers it to urban retailers.
The recent funding round was led by Creadev, with participation from existing investors such as TLcom Capital, IFC Ventures, DOB Equity, and Juven. This funding will be used to expand Twiga’s operations in the country and scale its food solutions across Africa.
“We have sent over 100 letters informing suppliers that we have now finalized our restructuring and refinancing and they will finally have their long outstanding dues paid,” The Cabal quoted Peter Njonjo.
The funding is expected to have a significant impact on Twiga’s operations. In August of this year, Twiga Foods let go of a third of its 850 permanent employees, despite having raised Kshs 23 billion over the last decade. Njonjo had attributed this decision to challenging market conditions and the company’s commitment to maintaining a streamlined and efficient organization.