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 billion) fundraising led by Goldman Sachs.
The company, which uses an online platform to link food producers with retailers, has been making waves in the highly fragmented and informal retail market in Africa.
Twiga's innovative approach involves using its fleet of vehicles to deliver fruits and vegetables to retailers within 18 hours of receiving an order on the platform. This efficient delivery system ensures that farmers are paid within 48 hours using mobile platforms such as M-Pesa.
The funds raised will be used to upgrade the technology behind the Twiga platform and establish a new distribution center, which will feature cold rooms, conveyors, and other sorting infrastructure.
According to co-founder and CEO Peter Njonjo, the funds will enable the company to 'get to the next level of growth' by aggregating the demand of informal retailers and providing an addressable market for the farming ecosystem.
Twiga plans to expand into other Kenyan towns by the middle of next year before moving into other African cities.
