The business model behind ReelFruit's $3 million idea
Agritech business model. Source: Stears Business

The agritech sector is brimming with potential. Agricultural innovations—from biotechnology to farm management systems and supply-chain technology increasingly describe agritech activities. We now have startups that leverage artificial intelligence to help farmers better manage potential risks and disasters such as drought, pests and precision irrigation applications for crop farmers.

And so, with the growing use of tech applications, everything from soil testing and drone technology through micro-credit and micro-insurance availability is looking to increase the overall productivity of the agriculture sector.

Some takeaways
  • Nigeria is experiencing a rise in Agritech companies with fundraising like AgriCorp's $17.5 million, Releaf's $4.5 million and more recently ReelFruit's $3 million. 

  • ReelFruit will use the money raised to expand production capacity by 5x and improve its input supply by training medium and large scale farmers. 

  • A business model pivot that caters to the international market is necessary for ReelFruit to shore up revenue, but regulatory and logistical constraints exist.

A testament to the rise in agritech, particularly in the Nigerian market, manifests in the recent raises that were announced in September. AgriCorp ($17.5 million). Releaf ($4.5 million). ReelFruit ($3 million).

Over the past five years, funding in agritechs across the African continent has been rising consistently. According to Partech, agritechs raised about $179 million across Africa in 2020. This represents 13% of the total money startups raised across the continent. However, there is still a lot to make up for. Going by Briter Intelligence's compilation of financing deals in Nigeria this year, about 40% went to fintech companies, while agritech only managed to get 0.8% of the pie.

One truth remains. The innovation revolution happening in the sector could not have come at a better time. And so, I decided

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Gbemisola Alonge

Gbemisola Alonge

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