This archive report was first published on 29 October 2019.
On October 29, 2019, Twiga Foods, a Kenyan food distribution start-up, secured a significant boost with the announcement of a $30 million (Ksh 3.1 trillion) fundraising led by Goldman Sachs.
According to Reuters, Twiga Foods is part of a growing number of African start-ups leveraging information technology to navigate the complexities of the highly fragmented and informal retail market.
The company's innovative approach involves using an online platform to connect food producers with retailers, streamlining the delivery process through its fleet of vehicles, and ensuring timely payments to farmers via mobile platforms like M-Pesa.
Existing investors, including the International Finance Corporation, Tl-com Capital, and Creadev, also contributed to the fundraising effort.
Twiga Foods plans to utilize the funds to upgrade its technology and establish a new distribution center, which will feature cold rooms, conveyors, and other sorting infrastructure.
As the company looks to expand its reach, it aims to establish a presence in other Kenyan towns by the middle of next year, with plans to eventually move into other African cities.
Co-founder and CEO Peter Njonjo expressed optimism about the company's growth prospects, stating, 'This allows us to get the company to the next level of growth, we are aggregating the demand of those informal retailers, allowing the farming ecosystem to start having an addressable market.'
