Fakoyejo OlalekanTwo Nigerian youths, Ikenna Nzewi and Uzoma Ayogu, the co-founders of Releaf, secured $3.3 million from foreign and domestic investors to fund their operation.
Both Nzewi and Ayogu created Releaf, a technology company, to help food manufacturers reduce expenses and increase earnings during their processing stage.
The Nigerian startup has processed more than 10 million kilograms of palm nuts with the aid of its chain technology, which also assists Fast Moving Consumer Goods (FMCG) manufacturers in Africa to access high-quality ingredients for their factories.
In a statement obtained by Prime Business Africa (PBA), the $3.3 million will be invested in the launch of two new technologies: Kraken II and SITE.
The fund was raised from several investors led by Samurai Incubate Africa. Other investors are Consonance Investment Managers, Stephen Pagliuca (Chairman of Bain Capital) and Jeff Ubben (Board member at World Wildlife Fund and Founder of Inclusive Capital Partners).
Prior to this fundraising, both Nzewi and Ayogu had secured $4.2 million in September 2021 from investors, the Challenge Fund for Youth Employment (CFYE), and USAID.
Speaking about the funding, Ayogu, who acts as the firm’s Chief Technical Officer (CTO), said: “SITE and Kraken II are the next steps in our plan to fundamentally transform the efficiency of agricultural supply chains in Africa and we are excited to have partnered with an exceptional cohort of investors and collaborators to roll out these technologies.
“To make food supply chains profitable, we must maximize extraction yields with leading processing technology and minimize logistics costs by bringing processing capacity closer to farmers.
“Before Releaf, stakeholders had to choose between one or the other – large factories had great technology but were far away, leaving most farmers with rudimentary technology to process their crops. We’re now able to maximize both.”
The statement also reads: “Since launching in 2021, Releaf has used its supply chain technology to process more than 10 million kilograms of palm nuts and grown its monthly revenue 7X year on year.
“The company has also secured more than $100 million in supply contracts from leading consumer goods manufacturers, including Presco, PZ Cussons, and more. The company’s valuation has tripled since its seed round a year ago.”
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