Kenya’s B2B agritech startup, iProcure, has raised $10.2 million in Series B funding to grow its presence in its current markets – Kenya and Uganda, and expand to Tanzania. The round was led by Investisseurs & Partenaires (I&P), with participation from Novastar Ventures, Ceniarth, and British International Investment (BII) participating.
iProcure was founded in 2014 by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi. The company connects agricultural manufacturers and distributors to local retailers (agro-dealers) through its unique distribution infrastructure that connects agricultural supply chains.
iProcure offers agro-dealers an end-to-end Enterprise Resource Planning (ERP) system that can be accessed via mobile devices, assisting them in managing their sourcing and distribution.
This technology has introduced new efficiencies that control the penetration of sub-standard supplies as retailers are able to source directly from certified manufacturers and distributors. By helping manage stock-outs, the agtech ultimately helps stabilize product prices for the benefit of both the sellers and end-users, and because retailers can now source directly from certified manufacturers and distributors, this technology helps them control the penetration of sub-standard supplies.
iProcure currently connects 5,000 agro-dealers to various manufacturers and expects the number to grow as it adds more partners and retailers across its markets.
By adding more retailers to its system, iProcure will gain access to the data needed to inform its growth strategy, which includes a buy now, pay later (BNPL) service currently in the works.
It also plans to double its distribution hubs to 20, boosting last-mile delivery.
iProcure claims to have grown 16 times in the last 4 years, with revenue doubling yearly except in 2020 due to Covid.
Also, iProcure will use the funds to introduce higher quality, lower-cost products from international players.