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Twiga Foods, a Nairobi-based Agri-tech startup led by Kenyan entrepreneur Peter Njongo, has launched a new farming subsidiary as part of its plans to expand its business model beyond supplying fresh produce and commodities through its mobile-based platform.
Njonjo and Grant Brooke founded Twiga Foods in 2013 to connect Kenyan farmers and vendors to fair, trusted and modern markets. The startup provides a complete supply chain for high-quality produce.
The coming on stream of the new farming venture, Twiga Fresh, with a $10-million initial capital injection, comes just months after Twiga Foods added sugar, salt and snacks to its branded products, which include rice, cooking oil and maize flour, to attract customers with lower prices.
The move comes nearly seven months after the Njongo-led startup announced the successful close of a $50-million Series-C round to scale operations in Kenya and neighboring countries.
Twiga Foods’ product diversification strategy will be strengthened by the arrival of the new farming venture, as it moves to attract end consumers and small shops with thin margins.
To jumpstart its operations, Twiga Fresh has leased a 650-hectare farm in Taita Taveta, Kenya, where it plans to use modern farming techniques to grow onions, tomatoes, and watermelons and increase yields.
“Twiga Fresh, in addition to our growing range of private label products, will ensure we drive growth in customer numbers and broaden basket size by offering quality produce at a discount against prevailing market prices,” Njonjo said of the new farming venture’s launch.
He added that to scale up the operations of Twiga Fresh, the new venture will be funded in the long run through debt in collaboration with development financial institutions focused on primary agriculture and food security.
