Kenya’s Farm to Feed raises $1.5 million to give imperfect farm produce a market

Farm to Feed, a Kenyan agritech startup that connects smallholder farmers to businesses that need reliable and traceable produce, has closed a $1.5 million seed funding round to scale its operations across Kenya and into regional markets in Africa. The investment includes  $1.27 million in equity and $230,000 in non-dilutive funding from the DeveloPPP Ventures program, an initiative by DEG (German Investment Corporation), aimed at supporting innovative businesses in sub-Saharan Africa. 

The $1.27 million equity round was led by Delta40 Venture Studio, with participation from DRK Foundation, Catalyst Fund, Holocene, Marula Square, 54Co, Levare Ventures, and Mercy Corps Ventures.

Across Africa, as much as 40% of food never makes it from farm to table, often because of aesthetic standards, broken supply chains, or lack of access to buyers. Founded in 2021, Farm to Feed sits at the centre of this inefficiency, creating a digital marketplace for imperfect or “rescue-grade” produce—food that’s nutritionally sound but discarded for not looking “good enough.” By connecting smallholder farmers directly with businesses that value affordability and traceability, the startup is helping build a more efficient and reliable food supply system.

The company originally completed a first close in February, securing initial commitments and establishing the core investor group, but as Farm to Feed continued to grow through the year, more investors signalled interest in joining the round, prompting the team to keep the round open. Now, the company has finalised a second close with additional partners.

“Farm to Feed is transforming one of Africa’s biggest inefficiencies into one of its greatest opportunities,” said Maelis Carraro, Founder and Managing Partner, Catalyst Fund. “ Their model proves that climate adaptation and inclusive growth can go hand in hand, and we’re thrilled to continue backing their journey as they expand their impact.”

A COVID-19 baby

During the early weeks of the COVID-19 lockdown in 2020, Kenyan farmers found themselves cut off from the markets they relied on. Kenya’s horticulture industry was losing about $3 million a day; produce that had taken months of labour and care sat with nowhere to go, due to the lockdown. 

In response, Claire van Enk, who was on a career break from her management consulting career, set up a GoFundMe effort to buy crops directly from smallholder farmers and distribute them to families in informal settlements. The effort grew far beyond what she expected, that, at one point, up to 10,000 people were being fed daily. The effort also revealed farmers were unable to sell a significant portion of their harvest, even as the economy began to reopen. 

Image source: Farm to Feed

The produce left behind wasn’t spoiled; it simply looked odd or different from the aesthetic standards of mainstream retailers: tomatoes that were too small, carrots that bent or broke, or pumpkins of the wrong size or shape. These crops were nutritionally identical to the other visually appealing produce gotten from the same farm, but they were routinely discarded and undervalued.

Van Enk refers to these kinds of produce as rescue grade, a category for produce that is less desirable to the average consumer but is still perfectly edible and nutritious. “If you grow your own food and one is smaller than the other, I’m quite sure you would consume both because they actually taste the same but look a bit different,” she explained, highlighting that much of the bias against such produce is based on perception.

By 2021, Van Enk and her co-founders, Anouk Boertien and Zara Benosa, decided to transition Farm to Feed from a relief operation into a commercial supply chain business designed to consistently absorb the full harvest, including the imperfect portion of it. 

“We wanted to solve this problem more sustainably and more commercially,” Van Enk said in an interview with TechCabal.

Today, Farm to Feed operates as a market platform that connects smallholder farmers to businesses that need reliable and traceable produce. The company has onboarded over 6,500 farmers, sold over 2.1 million kgs of produce, and avoided 247 tons of CO2e emissions to date. Its operations are supported by a digital backbone which the company built internally. 

Farmers use a mobile app or a USSD system, which is accessible to those without smartphones, to access pricing and delivery information. The in-house technology comprises a farmer app for onboarding and market access, a central enterprise resource planning (ERP) system to manage operations, and an e-commerce platform that enables customers to order produce with traceability data included.

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Planting the next season

In 2024, Farm to Feed raised $1 million in pre-seed equity and grant funding to streamline its operations, specifically collection and payments to farmers. The fresh capital is expected to support Farm to Feed’s next phase of growth, including strengthening its digital infrastructure, expanding sourcing and distribution capacity across Kenyan regions, and building out its semi-processed product line, a growing part of the business that offers customers ready-to-use ingredients that cut down preparation time and reduce operational waste. 

“With that (its semi-processed product line), we can increase our impact, preserve more products, upcycle products, and increase convenience for customers,” Claire Van Enk, CEO and co-founder, says.

Farm to Feed’s expansion strategy is focused on deepening its presence within Kenya first, particularly in secondary cities and regional production hubs where supply is strong but market chains remain fragile. The founders believe there is still significant room to strengthen local networks before looking outward. Van Enk says the company sees a significant opportunity in entering export markets, a move she believes is crucial for the continent’s future.  

“How we feed the future must be reimagined – rescued, regenerative, indigenous, and crafted to deliver value to farmers, nutrition for customers, and climate benefits,” she adds. “ As we scale, technology remains at the core of our growth, and we’re excited to enhance our systems to support expansion beyond borders. ”

Source: TechCabal | Read the Full Story…