Pietermaritzburg-based start-up AgriKool plans to expand to other provinces in the coming year.
This, as the start-up witnesses significant uptake of its service in the KwaZulu-Natal region.
Founded by Zamokuhle Thwala, AgriKoolis an agricultural e-trading platform that links smallholding producers to buyers, facilitating the sale of products between retailers and farmers.
It collates data and insights that are used to inform farmers about market trends, particularly pricing. A grower lists the products they have available for sale, buyers engage the grower and agree on the price.
Through its platform, AgriKool ensures timely payment and then facilitates the transportation of the produce to the buyer, explains Thwala.
The e-trading platform has on-boarded a number of large commercial buyers and suppliers, including Shoprite's fresh produce arm Freshmark, and has been promoted to a higher-level supplier with Boxer, he notes.
“We have also on-boarded 21 large commercial and 100 small growers, replacing the Durban Fresh Produce Market as an intermediary between these large growers and retailers. Our revenue has grown by over 400% a month this year.”
Last year, AgriKool was among the four start-ups selected to receive R2 million in funding from incubation, acceleration and investment vehicle AlphaCode.
Dominique Collett, head of AlphaCode and senior investment executive at Rand Merchant Investments, comments: “AgriKool was one of 200 start-ups which applied for our programme and it stood out as one of the top five businesses in its cohort as it solves a particularly desperate pain-point for South Africans − the very high cost of food. The business continues to make steady progress and grow.”
Thwala believes the local agritech industry is ripe for overhaul, as farmers take great risk in the agri value chain.
“Usually, farmers take their produce to municipal markets in warehouses where farmers and agents – buyers that sell to retailers at a profit margin – gather. Here agents bid to buy fresh produce. Farmers cannot predict how much they will make because agents determine the final price of goods.
“The warehouse takes a 5% commission on the value of goods sold, while the agent takes a 7.5% commission − whether the farmer makes a profit or loss. AgriKool cuts out the expenses of both the agent and the municipal market.”
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