Ugandan Fintech, Emata, Raises $2.4m to Expand its Agri-loan Services to East Africa

Emata, a pioneering fintech and microfinance firm based in Uganda, has successfully secured $2.4 million in a seed funding round. The funds, which include $800,000 in equity and $1.6 million in on-lending capital, will be utilized to expand the company’s innovative agri-loan services throughout the East African region.

The seed funding round was supported by a group of investors, including African Renaissance Partners, a venture capital firm dedicated to fostering entrepreneurship in East Africa and the Horn of Africa. Norrsken Accelerator, the investment division of Europe’s largest impact tech ecosystem, also contributed to the round, along with Zephyr Acorn, Marcus Boström, and the Draper Richards Kaplan Foundation.

Emata’s distinctive business model addresses the scarcity of agricultural financing in East Africa by offering automated loans to farmers. This groundbreaking approach significantly diminishes the cost of securing loans. For instance, loans from Emata are five times more cost-effective than the informal loans farmers have traditionally depended on. Moreover, Emata’s loans are disbursed instantly, eliminating the need for collateral.

Bram van den Bosch, the Founder and CEO of Emata, expressed his enthusiasm about the successful fundraising. “We are ecstatic to conclude our $2.4 million seed fundraise, supported by prominent, impact-driven investors who acknowledge the immense potential of digital agri-loans in East Africa, and beyond,” he stated.

Van den Bosch further expounded on Emata’s mission to empower farmers to aspire for more by removing the typical barriers that have historically made it challenging for them to access agri loans. “Our solution transforms a lifelong struggle into a five-minute process, and is already making a tangible impact on thousands of East African farmers,” he added.

Emata’s next strategic step is to broaden its market solutions, with Tanzania, a neighboring country of Uganda, being a probable next destination. The company intends to concentrate on developing the dairy and coffee markets while also extending its influence to the potato sector.

Despite being in operation for less than five years, Emata has already achieved global recognition. The company was awarded the “Best Newcomer / Best New Startup” at the 2023 Global Startup Awards, outperforming 80,000 entrants from around the globe. It was also featured in Yale Africa Startup Review’s list of 30 startups to watch in 2023.

In 2022, Emata accomplished a seven-fold year-on-year growth, expanded its partner network to 50, connected with over 40,000 farmers, and disbursed loans worth $1 million.

Investors in Emata have expressed their confidence in the company’s potential. Magdi A. Amin, Managing Partner at African Renaissance Partners, said, “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.”

Kanini Mutooni, the Managing Director of Draper Richards, described Emata as one of the rare early-stage startups with an impressive business model. Alex Bakir, a General Partner at Norrsken Accelerator, justified their investment by stating, “Norrsken Accelerator invested in Emata because we believe their team and model places them in the top 1% of impact companies, globally.”