Nigeria’s Agricorp raises $17mn Series A funding to boost production

Nigeria-based Agricorp International, a leading spices producing, processing, and exporting company, recently announced the successful completion of a $17.5 million Series A funding round. The funding will be instrumental in boosting the company's processing capacity up to 7,000 metric tons per annum, positioning them as a major player in the global spices market. Kenneth O'Biathe-Luke, Co-founder of Agricorp International, shared insights on the funding process and the company's strategic vision to tap into the East and South Africa markets. The funding round, which commenced in November last year, aimed at expanding Agricorp's reach, particularly focusing on Ginger production, leveraging Nigeria's status as the third largest ginger producer globally. Despite accounting for 16% of global production, Nigeria only holds a 3% share in the export market, signaling a significant growth opportunity. O'Biathe-Luke emphasized the vision to become the leading exporter of ginger and spices from the region, a key value proposition that resonated with investors. One of the critical aspects for Agricorp was to secure strategic partners who aligned with their long-term growth objectives, rather than viewing the company as a mere investment. Varmine Nigeria, a family office managing investments for high-net-worth individuals, emerged as a key investor, recognizing Agricorp's potential to dominate the spice export market. Additionally, sister company One Capital and AFX provided essential working capital funding to facilitate raw material procurement, essential for scaling operations. The spices market in Nigeria exhibits robust growth potential, with market size projections indicating significant expansion in the coming years. Challenges such as low productivity, post-harvest losses, and limited access to finance plague small-scale farmers in the sector. Agricorp has positioned itself as a catalyst for change, supporting farmers to enhance productivity while driving business growth. With global spices market estimated to reach $20.99 billion by 2024, Nigeria stands to earn up to $2 billion annually from spice exports, showcasing the immense opportunities in the sector. Looking ahead, Agricorp's expansion plans include reaching a processing capacity of 7,000 metric tons within the next two years. The company aims to capitalize on Africa's vast potential in spice production, with plans to venture into South and East Africa markets. O'Biathe-Luke highlighted Africa's comparative advantage in producing spices that cater to the preferences of major buyers in Europe and America, setting the stage for Agricorp to become a key player in the global spice trade. In conclusion, Agricorp's successful funding round and strategic growth plans underscore its commitment to driving innovation and sustainability in the spices market. With a clear vision to become a dominant player in Africa's spice export industry, the company is poised to capitalize on the continent's immense potential and contribute significantly to the global spices market.