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    HomeUpdatesRoot Capital Fuels Oyster Agribusiness with Follow-on Investment in $2M Funding Round

    Root Capital Fuels Oyster Agribusiness with Follow-on Investment in $2M Funding Round

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    Oyster Agribusiness, a Ghana-based agritech company specializing in climate-smart agriculture, has raised $2 million in new funding to scale operations and expand its reach among smallholder farmers. The funding round saw the continued support of Root Capital, alongside investments from RDF Ghana and the Sahel Capital Social Enterprise Fund for Agriculture in Africa (SEFAA Fund). The fundraising was facilitated by Pangea Africa Limited, a business development service provider dedicated to advancing African startups with sustainable impact.

    Founded in 2018 by CEO Edmond Kombat, Oyster Agribusiness is committed to transforming Ghana’s agricultural sector through technology-driven and sustainable farming practices. Since its inception, the company has positively impacted the lives of over 4,500 smallholder farmers, distributed more than 25,000 tons of produce to local and international markets, and cultivated 20,000 acres of farmland. This funding marks a new chapter for Oyster, enabling it to expand its climate-smart agricultural initiatives amid growing challenges linked to climate change and food security.

    The funds will support Oyster in deploying advanced technologies across its network of smallholder farms. By integrating temperature and moisture sensors, GPS technology, and data analytics, the company aims to enhance productivity, reduce input costs, and improve resilience for farmers facing volatile weather patterns. Additionally, the investment will fund the expansion of Oyster’s model for improved forecasting and more efficient delivery of farm inputs, allowing for smoother distribution from farm to market.

    In a statement on the investment, CEO Kombat expressed optimism for the future, emphasizing the significance of climate-smart farming practices in building a resilient agricultural ecosystem in Ghana: “We are thrilled to have the support of Root Capital, RDF Ghana, Sahel Capital, and Pangea Africa Limited. Their expertise and backing accelerate our vision of a sustainable, inclusive, and resilient agricultural landscape. This funding is a testament to the impact we’ve made so far with smallholder farmers and the tremendous potential to scale our operations.”

    Pangea Africa Limited, which played an essential role in structuring the funding process, lauded Oyster Agribusiness’s achievements in promoting economic and environmental gains. “Oyster is a prime example of a successful African agribusiness delivering triple bottom-line impacts under Mr. Edmond Kombat’s leadership,” said Nii Lokko, Partner at Pangea Africa Ltd. “The company not only generates profit but also fosters measurable social and environmental benefits, setting a benchmark for agribusinesses across West Africa.”

    Root Capital, a nonprofit lender with a focus on rural prosperity, has been a steadfast supporter of Oyster Agribusiness. Last year, it provided a $300,000 line of credit to Oyster, further demonstrating its commitment to supporting climate-resilient businesses that uplift rural communities. This follow-on investment underscores Root Capital’s strategy of reinforcing small-scale agribusinesses that play a pivotal role in rural economies.

    As a vertically integrated company, Oyster Agribusiness manages production, processing, distribution, and retail operations across the agricultural value chain. The company’s climate-smart model allows it to deliver sustainable farming solutions to smallholders while also aiming to increase Ghana’s food security. The company’s core approach of blending technological innovation with sustainable practices not only amplifies crop yields but also ensures that the environmental footprint remains minimized.

    The $2 million investment in Oyster Agribusiness reflects the growing appetite among impact investors for agritech solutions that promote sustainability and rural resilience. For RDF Ghana and Sahel Capital SEFAA Fund, this investment aligns with their goals of driving socioeconomic development through agribusiness, with a focus on inclusivity for smallholder farmers across Africa.

    With this new capital, Oyster Agribusiness is poised to bolster Ghana’s agricultural sector at a critical time, where climate-smart approaches are essential for future-proofing food supply chains and supporting rural livelihoods.

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