Releaf, an agritech firm that was formed in 2017 and participated in the Y Combinator accelerator program in Silicon Valley the same year, just began operating in the oil palm sector in 2019 and implemented its unique technology in January of this year.
The company’s patented gear improves the availability and quality of raw materials for food manufacturers, while its sourcing software connects them directly to over 2,000 smallholder farmers. Releaf also works with a network of smallholder farmers, who have provided over 10 million kg of high-quality palm kernel nuts to food manufacturers, using digital technologies such as USSD and open banking.
Relief has secured US$2.7 million in early investment from Samurai Incubate Africa, Future Africa, and Consonance Investment Managers, with involvement from Stephen Pagliuca, chairman of Bain Capital, and Justin Kan, founder of Twitch. The Challenge Fund for Youth Employment (CFYE) and USAID have also given the firm US$1.5 million in funding.
The grant will enable Releaf to provide working capital and other value-added services to smallholders and small-scale processors in Nigeria’s smallholder-driven oil palm sector, while the seed funding will enable the development of industrial food processing technology in Nigeria’s smallholder-driven oil palm sector. Through the development of both digital and technical jobs, the grant money will assist the training, recruitment, and retention of more women and youth in the Nigerian oil palm sector.
“Our mandate is to industrialise Africa’s food processing industry. This round of funding enables us to develop and prove our technology with smallholder farmers in the oil palm sector. Given Nigerians spend around 60 per cent of their income on food and Africa’s population is set to increase by 100,000 people per day over the next three decades, we’re presented with an incredible opportunity to feed more people, reduce consumer costs, and supply the fastest-growing food market in the world,” said Ikenna Nzewi, chief executive officer (CEO) and co-founder of Releaf.
“Releaf is committed to harnessing technology to accelerate the economic wealth of rural, agrarian societies throughout the continent. We firmly believe that a robust real economy is the foundation for long-lasting and shared prosperity for Africans and are excited to deepen partnerships with like-minded organisations, governments, and firms.”
This additional financing would boost production and hasten the abolition of laborious and antiquated procedures that plague Nigeria’s oil palm industry and agriculture in general. It would also allow Releaf to increase value and profitability throughout the oil palm value chain, as well as promote direct and auxiliary employment generation in Nigeria’s agricultural communities.
“Releaf’s novel approach to operating within the value chain with proprietary technology set it aside from many agri-tech startups we have spoken to. We believe the firm’s thesis on decentralizing food processing would have a strong match with Africa’s economic development landscape for the next few decades. Ikenna and Uzo are the perfect founders to disrupt this market in Nigeria and beyond. We are thrilled to back them as they innovate in providing both agro-processing and financial services to rural communities and farmers,” said Rena Yoneyama, managing partner at Samurai Incubate Africa.
Glycerine – an extract derived from palm oil – is found in more than 50% of supermarket items worldwide, according to Iyin Aboyeji, a general partner at Future Africa. Palm oil is a cash crop that is passed down from generation to generation.
“The team at Releaf is building the agro-allied industry of the future from the ground up starting with palm oil which they have developed a novel technology to aggregate, deshell, and process into critical ingredients like vegetable oil and glycerine. Future Africa is delighted to back Releaf to build the future of modern agriculture,” he said.
