Emata, a Uganda based startup that offers affordable loans to farmers has raised a $2.4 million seed round which it will use to expand its agri-loan offering across East Africa.
Emata, a Uganda based startup that offers affordable loans to farmers has raised a $2.4 million seed round. The seed round was a mix of $1.6 million debt and $800,000 equity funding. Emata will use the funding to fund its offerings in Uganda and expand into Tanzania.
The round was backed by African Renaissance Partners, Norrsken Accelerator Draper Richards Kaplan Foundation, with participation from angel investors Marcus Boström, Zephyr Acorn. In June 2022, Emata was among the nine African startups selected for Norrsken Impact Accelerator.
Agriculture constitutes 23% of the GDP in sub-saharan Africa, and these contributions could be more if smallholder farmers in the region have more. The agricultural finance gap on the continent is pegged at $240 billion and many farmers rely on expensive bank loans.Emata addresses this funding gap by offering no collateral loans to small holder farmers. By working with cooperatives and farmer-based organizations, Emata offers automated loans to farmers. These partners also help Emata with the recollection of loans from farmers.
Speaking on the fund round Bram van den Bosch, Founder & CEO of Emata, “We are thrilled to complete our $2.4 million seed fund raise, backed by high-profile, impact-oriented investors who recognize the huge potential of digital agri-loans in East Africa, and beyond. Emata dares farmers to dream big and eliminates traditional obstacles that have made agricultural finance unavailable for the vast majority. Our solution turns a lifelong struggle into a five minute process, and is already tangibly impacting thousands of East African farmers.”
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