Village Capital led funding raised by Kenya’s Aquarech, Nigeria’s CoAmana

Village Capital has announced that it has invested through its Reducing Inequalities Investment Facility in two innovative startups that are changing the lives of farmers: Kenya’s Aquarech and Nigeria’s CoAmana.

Since its founding in 2012, Village Capital has operated in fifteen Sub-Saharan African countries, providing over 14 accelerator programs to entrepreneurs. In industries including financial health, hardware, sustainability, and the future of work, it has aided over 120 startups and 78 Entrepreneur Support Organizations (ESO).

With backing from the FMO’s MASSIF Fund, its Reducing Inequalities Investment Facility was created to promote inclusive businesses and creative financial solutions. It has now declared plans to invest in CoAmana and Aquarech.

A Kenyan agri-tech startup called Aquarech has raised US$350,000 to help small and medium-sized fish farmers increase their output and profitability by giving them access to high-quality fish feed, financing, and customers.

“An inclusive and sustainable aquaculture food system in Africa depends on how many small and medium-sized fish farmers we can transition to profitability,” Dave Okech, co-founder and CEO of Aquarech, said. “This fund enables us to achieve this by bringing high-quality extruded floating pelleted fish feed with better feed conversion ratios directly to the farmers’ doorstep, supported by a credit platform and market linkages. With this intervention, we are transitioning farmers to profitability.”

According to Village Capital’s vice president of impact investments, Heather Matranga, Aquarech made a strong case for the Reducing Inequalities Fund, highlighting its potential to improve fish farmers’ quality of life and create jobs for women and young people living in rural areas.

“This company, which really sits squarely at the intersection of climate resilience and economic mobility, is aligned with our mission to support emerging impact leaders tackling rural inequality. The founders of Aquarech have a combination of lived-experience and nuanced understanding of the problems fish farmers face, as well as the business acumen and creativity to solve these problems,” she said.

Meanwhile, US $500,000 has been deposited into Nigeria’s CoAmana bank account. Using a top-down strategy, the startup markets its product, Amana Market, by leveraging pre-existing market governance structures to improve market management.

In order to make it easier for farmers and traders to get started in the digital marketplace, the startup has set up agent networks. This will guarantee that farmers and traders receive vital services like credit, high-quality inputs, and information.

“This investment marks a pivotal moment for CoAmana, acting as a catalyst for our future ambitions. Village Capital has been an unwavering partner, journeying with us from Nigeria to Kenya and deeply understanding the communities and markets we serve, even reaching the borders of Niger,” said Hafsah Jumare, founder and CEO of CoAmana.

“Having a partner who not only supports but truly understands our mission is both galvanising and validating. This has been a long journey within an ecosystem that has supported us to get this far, and we are eager to enter the next chapter of our growth.”

The Village Capital investment in CoAmana, according to investment officer Kavon Badie, will increase pricing transparency, efficiency, market connections, and financing availability.