Emata, an agricultural tech firm that offers credit to East African farmers, secured a $2.4 million seed fund raise, comprising $800,000 in equity and $1.6 million in on-lending capital. Backing came from African Renaissance Partners, Norrsken Accelerator, Zephyr Acorn, Swedish angel investor Marcus Boström, and the Draper Richards Kaplan Foundation.
These funds will facilitate Emata’s expansion of agri-loan services across East Africa, with a focus on Uganda and potential expansion to Tanzania. Key markets for scaling include dairy and coffee, along with oilseeds, maize, and plans for potatoes.
Emata addresses East Africa’s agricultural financing gap by offering automated loans to farmers, reducing costs and providing smallholders with loans at rates five times more affordable than traditional informal loans. This approach benefits all farmers and eliminates the need for collateral.
Emata’s digitized lending process integrates with cooperatives and farmer-based organizations, enabling rapid scalability and reducing risks by securing direct repayment through partners. In 2022, Emata expanded sevenfold year-on-year, partnering with 50 agricultural entities, serving over 40,000 individual farmers, and disbursing $1 million in loans.
Bram van den Bosch, Founder & CEO of Emata, said: “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.”
