We’ve previously talked about having too many investment opportunities. That is true. But that didn’t stop us from making our first investment.
#1 – Agro Supply
Urgency drove a loan to Agro Supply. The company sells seeds and other agricultural inputs to over 7,000 Ugandan farmers. Trouble is, the company needs to pay the seed company upon pick-up, but doesn’t get paid by the farmers until a week or two later when the seeds are delivered to the farmers.
This is the common operational capital crunch many companies face, and it only gets worse as sales grow. At least until the startup is big enough that its vendors give it 30 or 45 days to pay.
This is also the type of funding that is not easy to get from African banks, at least not at any reasonable cost.
Africa Eats plans on funding a lot of these financing gaps in the coming years. It is the simplest way to help companies grow.