8 Y/O Agritech Firm with $30M+ Transactions Processed
Asking Price: | $12,740,000 |
Gross Revenue: | $5,978,706 |
Cash Flow: | $1,854,248 |
Established Year: | 2016 |
Company Overview:
The target company is a leading agritech firm, founded in 2016, focused on providing market access and financial services to smallholder farmers in a West African country. Through its digital platform, the company connects farmers directly to buyers, eliminating intermediaries and improving pricing transparency. The company’s platform also enables farmers to access financial services such as mobile money and microloans, improving financial inclusion.
The company has grown rapidly and now serves over 350,000 farmers across multiple regions. These farmers primarily cultivate staple crops such as maize, soybeans, and sorghum, benefiting from the company’s services, which have increased their incomes by 35% and reduced food waste by 25%. With strategic partnerships in agriculture, finance, and telecommunications, the company is well-positioned to continue its growth trajectory.
Key Metrics:
Farmers Onboarded: 350,000+
Regions of Operation: Multiple regions
Crops Facilitated: 75,000 metric tons+
Financial Transactions Processed: $30M+
The sale of the company presents a unique opportunity to acquire a rapidly growing business with established operations, a proven platform, and significant room for expansion in both existing and new markets.
Business Model & Revenue Streams
The company operates a diversified business model with multiple revenue streams derived from its technology platform, franchise operations, and financial services.
1. Contract Offtakers:
The company secures long-term contracts with large-scale agricultural processors and buyers. These contracts ensure steady demand for farmers' crops, contributing a significant portion to the company's revenue.
2. Open Market Sales:
The company also sells crops through open market channels, allowing it to capitalize on varying market prices and increase revenue beyond contracted sales.
3. Franchise Distribution:
Through its franchise program, the company partners with third-party distributors to store and sell crops domestically. These franchises offer localized storage and distribution, reducing food waste and providing direct access to local markets.
4. Platform Licensing (PAAS):
The company licenses its digital tools to other agribusinesses, enabling them to use its proprietary platform for managing transactions, crop tracking, and payments. This licensing model provides steady recurring revenue.
5. Financial Service Commissions:
The company generates commissions by facilitating financial transactions, such as loan disbursements and mobile money payments, through partnerships with financial institutions. These services are critical for smallholder farmers, who typically have limited access to formal financial systems.
6. Digital Payment Transactional Charges:
The company earns revenue from transaction fees on digital payments made through its platform, further diversifying its income streams.
Market Opportunity
The agricultural sector in West Africa is a key economic driver, with smallholder farmers producing the majority of the region’s agricultural output. Despite their importance, farmers face significant challenges in accessing fair market prices, logistical support, and financial services.