Emata, a Uganda primarily based startup that gives inexpensive loans to farmers has raised a $2.4 million seed round which it would use to increase its agri-loan providing throughout East Africa.
Emata, a Uganda primarily based startup that gives inexpensive loans to farmers has raised a $2.4 million seed round. The seed round was a mixture of $1.6 million debt and $800,000 fairness funding. Emata will use the funding to fund its choices in Uganda and increase into Tanzania.
The round was backed by African Renaissance Partners, Norrsken Accelerator Draper Richards Kaplan Foundation, with participation from angel buyers Marcus Boström, Zephyr Acorn. In June 2022, Emata was among the many 9 African startups chosen for Norrsken Impact Accelerator.
Agriculture constitutes 23% of the GDP in sub-saharan Africa, and these contributions may very well be extra if smallholder farmers in the area have extra. The agricultural finance hole on the continent is pegged at $240 billion and plenty of farmers depend on costly financial institution loans.Emata addresses this funding hole by providing no collateral loans to small holder farmers. By working with cooperatives and farmer-based organizations, Emata affords automated loans to farmers. These companions additionally assist Emata with the recollection of loans from farmers.
Speaking on the fund round Bram van den Bosch, Founder & CEO of Emata, “We are thrilled to complete our $2.4 million seed fund raise, backed by high-profile, impact-oriented investors who recognize the huge potential of digital agri-loans in East Africa, and beyond. Emata dares farmers to dream big and eliminates traditional obstacles that have made agricultural finance unavailable for the vast majority. Our solution turns a lifelong struggle into a five minute process, and is already tangibly impacting thousands of East African farmers.”
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