Three local FMCG companies acquired by Kenyan agri-tech company Twiga Foods
As it transitions from a fresh produce supplier to a full-service FMCG platform, the Kenyan agri-tech company Twiga Foods has purchased the majority of shares in three regional FMCG businesses.
Twiga is a B2B food distribution company that was founded in 2014 and uses efficiency, technology, and transparency to create fair and trustworthy markets for farmers and retailers.
By eliminating the need for numerous middlemen, the startup’s B2B e-commerce system streamlines the supply chain between producers of fresh foods, manufacturers of fast-moving consumer goods, and retailers, thereby reducing the cost of food for consumers.
After raising a US $50 million Series C round in 2021 and another US $35 million in late 2023, Twiga has struggled ever since. Along with reducing its workforce by 40% in 2023 and struggling to raise new capital in the wake of the global capital shortage, it has also been accused of delaying staff salaries and vendor payments. Charles Ballard, a former executive from Jumia Kenya, took over as CEO after founding CEO Peter Njonjo resigned last year.
It has recently acquired local FMCG distributors Jumra, Sojpar, and Raisons in order to speed up its current pivot. Through the acquisitions, Twiga hopes to expand its presence in the Central, Western, and Coastal regions and improve its procurement capabilities.
“This strategic alignment underscores Twiga’s commitment to modernising Kenya’s food distribution landscape. The combined strengths will enable a digitally powered distribution model that delivers enhanced value to Kenyan retailers and consumers,” Twiga said in a statement.
