In a move signaling a renewed focus on sustainable ventures, East Africa-focused impact investment fund DOB Equity has injected capital into FarmWorks, a Kenyan agribusiness firm connecting smallholder farmers directly to reliable markets. This investment arrives at a pivotal time for both FarmWorks and DOB Equity, marking the fund’s first foray under a revised strategy following recent headwinds in its portfolio.
Founded in 2020, FarmWorks operates as an aggregator and distributor of fresh produce, primarily sourcing tomatoes, onions, and potatoes from small-scale farmers. The company’s model addresses a critical challenge in Kenya’s agricultural sector: the often-precarious and inconsistent access to viable off-take channels for smallholders. Operating across 23 branches in Nairobi and its surrounding areas, FarmWorks currently serves over 4,500 customers monthly. These include informal market vendors, retail outlets, and players in the hospitality industry, all seeking a consistent supply of fresh produce.
“We are excited to support FarmWorks in its mission to improve market access and income stability for smallholder farmers,” stated Karen Serem Waithaka, CEO of DOB Equity. “By leveraging technology to enhance operational efficiency, FarmWorks is addressing key gaps in Africa’s agricultural value chain.” Waithaka also highlighted her enthusiasm for the company being led by a female CEO and co-founder, Yi Li, emphasizing the importance of diverse leadership in driving impactful change. The investment will be channeled towards expanding FarmWorks’ sourcing network, enhancing its technological platform, and broadening its range of product offerings, potentially allowing the company to reach more farmers and cater to a wider customer base.
Anthony Mahira, investment manager at DOB Equity and the lead on the FarmWorks deal, echoed this sentiment. “FarmWorks is tackling a fundamental issue for smallholder farmers in Kenya — the lack of dependable markets for their produce,” he explained. “Their reliable offtake model and technology-driven approach to matching supply and demand not only reduces food loss but also strengthens the entire food system by minimizing waste throughout the agricultural value chain. We have strong conviction in FarmWorks’ potential to generate significant impact, and we are eager to support their growth trajectory.”
This investment in FarmWorks comes on the heels of DOB Equity announcing its first investment under a refined strategy earlier this year. That investment went to Spouts International, a Ugandan company producing ceramic water filters under the brand Purifaaya. This move towards Spouts, founded in 2014, signaled a deliberate shift for DOB Equity towards prioritizing sustainable solutions in the region.
The strategic recalibration at DOB Equity follows difficulties encountered by some of its previous investments, notably logistics startup Sendy and e-commerce platform Copia. These challenges served as a reminder of the inherent risks associated with investing in emerging markets and prompted a comprehensive strategic review.
The investment in FarmWorks holds the potential to significantly improve the livelihoods of smallholder farmers in Kenya by providing them with consistent and fair market access. These strategic investments represent a significant step for DOB Equity as it seeks to regain momentum and demonstrate the effectiveness of its refocused investment strategy. The success of this new direction will undoubtedly be closely observed by the impact investing community in the region, as it navigates the delicate balance between financial returns and tangible social and environmental impact.