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Kenya’s Aquarech receives $350K From Village Capital to enables fish farmers to become more profitable

July 23, 2024
in Technology
Kenya’s Aquarech receives $350K From Village Capital to enables fish farmers to become more profitable
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Village Capital has invested $350,000 into Aquarech, a Kenyan agtech startup that enables small and medium-sized fish farmers to become more productive and profitable by providing them with access to quality fish feed, credit, and buyers.

This investment comes from Village Capital’s Reducing Inequalities Investment Facility, backed by FMO’s MASSIF Fund, established to support financial inclusion by supporting innovative financial solutions and inclusive businesses which also announced an investment into Nigeria’s Coamana.

Founded in 2019 by father-son duo David and Joseph Okech, as well as James Odede, Aquarech is a digital platform for small and medium-sized fish farmers. As natives of Kisumu. David grew up in the fish farming industry and has direct experience in many areas of Aquarech’s business, including establishing and running a caged fsh farm in Lake Victoria. Joseph is an agricultural economist with over 40 years of experience while James is the founder of healthtech startup MobiDawa and LakeHub.

In the regions surrounding the African Great Lakes, many residents in lakeside communities depend on fisheries for their livelihoods, either directly or indirectly. Fish play a crucial role as a source of sustenance and income across these areas. Lake Victoria alone sees an annual fsh catch of about 1 million tonnes, with the fishing sector employing roughly 2 million individuals near the lake. This industry sustains the livelihoods of approximately 40 million people across East Africa. Yet, overfishing, pollution, and climate change, combined with naturally occurring changes, have led to a significant reduction in fish quantities in the lake, disrupting the livelihoods and fishing industry in the region. Aquaculture is viewed as a viable option for closing the growing gap between fish demand and its supply. However, due to the industry’s heavy dependence on lake farming, aquaculture farmers face challenges such as the absence of high-quality fish feed, inadequate farming practices, limited access to structured markets due to reliance on middlemen, and a lack of access to capital.

Aquarech fills many critical gaps, operating both B2B and B2C verticals. Through their B2B services, they support farmers with access to quality feeds and credit using a buy now, pay later (BNPL) model. Aquarech also provides training and other precision agriculture tools that help fish farmers learn about best practices and improve incomes. As part of its B2C services, the startup mitigates the market access gap by purchasing fish directly from farmers and selling directly to consumers through its Fish Delis (Aquarech-owned distribution kiosks).

“An inclusive and sustainable aquaculture food system in Africa depends on how many small and medium-sized fsh farmers we can transition to profitability,” stated Dave Okech, Co-founder and CEO of Aquarech. “This fund enables us to achieve this by bringing high-quality extruded foating pelleted fsh feed with better feed conversion ratios directly to the farmers’ doorstep, supported by a credit platform and market linkages. With this intervention, we are transitioning farmers to profitability.”

Aquarech showcases its potential to enhance livelihoods for fish farmers and generate employment for women and youth in rural areas. Heather Matranga, VP of Impact Investments at Village Capital said, “This company, which really sits squarely at the intersection of climate resilience and economic mobility, is aligned with our mission to support emerging impact leaders tackling rural inequality. The founders of Aquarech have a combination of lived-experience and nuanced understanding of the problems fsh farmers face, as well as the business acumen and creativity to solve these problems.”

In addition, Aquarech is promoting gender inclusivity in the sector: 35% of the 2,000 fish farmers they work with are women. The startup is also focused on providing stable job opportunities for women, particularly in its distribution kiosks, which it intends to scale with its recent capital raise.

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Copyright for syndicated content belongs to the linked Source : TechMoran.com – https://techmoran.com/2024/07/23/kenyas-aquarech-receives-350k-from-village-capitals-reducing-inequalities-investment-facility/

Tags: AquarechKenya’stechnology
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