Emata, a Ugandan-based fintech with operations across East Africa, has raised $2.4 million in seed funding to bolster its operations.
The $2.4m which comprises $800,000 in equity and $1.6 million in on-lending capital was raised with support backed by five funders; African Renaissance Partners, Norrsken Accelerator Zephyr Acorn, Swedish angel investor Marcus Bostrom and global venture philanthropy firm – Draper Richards Kaplan Foundation.
Magdi Amin, Managing Partner at African Renaissance Partners, one of the founders, said they were impressed by Emata’s financing model.
“We are delighted to back Emata – the digital and affordable solution for East African farmers. Our portfolio is geared to high-growth companies that use technology to solve real problems that Africans face every day.
Emata is a perfect fit for us: growing rapidly, with many competitive differentiators, digital strategy at its core, and materially impactful. The company has a great future ahead and we look forward to working closely with its management team,” he said.
Bram Willem van den Bosch, founder & CEO of Emata, said the funding will increase the visibility of their operations across the region.
“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.
He said the proceeds will be used to expand Emata’s agri-loan offering across East Africa – both within its debut market of Uganda, and via imminent international expansion – which is most likely to be Tanzania.
“It will focus on scaling its core markets – dairy and coffee. A multi-crop company from inception, Emata’s other operations are oilseeds and maize, whilst expansion is also anticipated into potatoes,” he said.
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,” he said.
In 2022, Emata witnessed expansion and now has 50 agricultural partners – reaching over 40,000 individual farmers – and has disbursed $1 million of loans.
Emata’s credentials have already attracted global attention. The company won the coveted “Best Newcomer / Best New Startup” at the 2023 Global Startup Awards – beating 80,000 other start-up entrants from around the world and was named on Yale Africa Startup Review’s list of 30 startups to watch in 2023.