Can you tell us more about Emata ’ s journey from its inception to this recent US $ 2.4 million seed fund raise ? What were the key milestones along the way ?

Emata was created in a hot car on a dusty road while returning from visiting farmers ’ cooperatives in Southwestern Uganda Our founding team met while working at a Ugandan FinTech digitising banks . While there , we were increasingly frustrated that banks hardly service farmers , Africa ’ s most underserved yet economically important sector . Impatient with the banks ’ slow progress , we decided to rethink and revolutionise farmer financing .

In March 2020 , we set out to solve agricultural financing . In December , we received our Microfinance License in Uganda and started lending in February 2021 . We started our journey in dairy ( our name comes from the Luganda word for milk , ‘ amata ’). Over the last few years , we have partnered with 57 agricultural partners , impacting the lives of 43,000 farmers and growing . Last year was pivotal for us . We scaled from one to four value chains : dairy , coffee , oilseeds and maize . These are four of the five largest agricultural value chains in East Africa .

Key significant achievements encompass our swift expansion , which multiplied sevenfold in 2022 , disbursing loans worth more than $ 1 million and successfully running numerous pilots that shaped our offerings . This recent $ 2.4 million seed fundraiser is a testament to the market ’ s belief in our vision

60 and will allow us to scale-up and expand to more countries in East Africa .

The agri-finance sector in Africa faces significant challenges . How does Emata ’ s digitised lending process address these challenges and benefit African farmers ?

Agriculture is the cornerstone of the African economy . It accounts for a staggering 70 % of the population and 30 % of GDP , yet it receives only a fraction of all lending . Formal financial institutions do not lend to smallholder farmers because they struggle with slow and expensive manual processes , lack efficient lastmile distribution and prefer lending to borrowers with substantial collateral . Emata ’ s approach is a game-changer in this space . Our unique partnership model directly taps into existing agricultural ecosystems , ensuring we can reach farmers at scale . Instead of reinventing the wheel , we team up with those already on the ground , amplifying our impact .

But the real magic happens with our WhatsApp lending platform . Given WhatsApp ’ s widespread use in Uganda , we ’ ve transformed it into a gateway for farmers to access loans easily . No jargon , no complex procedures – just a familiar app that farmers already use daily . To ensure that funds reach farmers swiftly and securely , right in the palm of their hands , our loans are paid out using mobile money . No travel to a bank branch , no hefty transaction fees , nor the insecurity of cash .

Bram Van den Bosch , Co-founder and CEO of Emata , a company dedicated to providing digital and affordable financial solutions to East African farmers , shares the remarkable journey of the organisation , from its inception to a recent successful seed fund raise of $ 2.4 million

Finally , our repayment model benefits us and the farmers . We ’ re not just handing out loans and hoping for the best . A farmer repays when they have money : At harvest . Our partner deducts the money , before they pay the farmer , meaning the farmer never has to send us money directly . This model not only protects their financial health but also builds a trust relationship .

Could you elaborate on the unique features that make Emata ’ s lending rates five times more affordable than traditional , informal loans in Africa ?

Emata ’ s affordability advantage over traditional loans stems from a synergy of Smart Tech and strategic partnerships . Firstly , our tech-first stance is a gamechanger . By automating everything – from farmer onboarding to credit scoring and loan disbursement – we ’ ve slashed operational costs . This efficiency doesn ’ t just make our system fast ( farmers get loans when needed , in time for the season ), but it also brings down the costs .

Our AI-powered tailored credit scores allow us to trust our farmers more and this confidence gets passed down as savings to the farmer . But it ’ s not all algorithms and automation . Our unique partnership model bridges the digital with the tangible . While our tech platform is streamlining processes in the background , our collaborations with cooperatives and aggregators ensure we have a physical presence in rural areas . This dual approach is critical . It means farmers , even those

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