Zaoshinani drives agriculture with fintech

Zaoshinani, a fintech startup dedicated to driving agricultural innovation, is making waves in the industry by integrating cutting-edge digital tools with local insights to promote financial inclusion for smallholder farmers. Co-Founder Lilian Kamathi Limukii recently joined CNBC Africa to shed light on the company's value chain financing model and its impact on addressing unique challenges faced by farmers, particularly in accessing credit. At the core of Zaoshinani's approach lies the use of technology to digitalize the value chain, cooperative societies, and farmers' operations. By collecting a wealth of data on their platform, including over 33 data fields, the company gains a deep understanding of each farmer's profile, production value, and operational needs. This informative data forms the basis for curating credit and short-term financial solutions tailored to farmers' specific requirements. Traditionally, smallholder farmers have been excluded from formal banking systems due to the lack of digital solutions and manual processes prevalent in their operations. Zaoshinani's platform aims to bridge this gap by providing farmers with a digital identity akin to a payslip for the employed, offering financial statements, and enabling seamless access to financial services. By digitalizing the dairy value chain in Kenya, which comprises over 1.8 million farmers across 600 cooperative societies, Zaoshinani is revolutionizing the sector and unlocking new opportunities for financial empowerment. The platform not only enhances transparency and efficiency in produce collection but also empowers farmers to access essential services such as animal feed, veterinary care, and credit for various needs. The positive impact of Zaoshinani's solutions is evident in the stability of cooperative societies and the improved livelihoods of farmers, who have reported significant benefits from the platform. Looking ahead, Zaoshinani aims to expand its reach and develop new products, starting with the replication of successful strategies in other value chains such as tea and coffee. The company also plans to scale regionally, targeting markets with similar agricultural landscapes and government priorities as Kenya, such as Uganda and Rwanda. To finance its growth, Zaoshinani is embarking on a fundraising campaign for a seed round of $500,000 USD and exploring partnerships with banks to leverage their balance sheets for shared revenue opportunities. By leveraging technology and data-driven solutions, Zaoshinani is poised to drive lasting change in the agricultural sector, empowering smallholder farmers and promoting sustainable financial inclusion across East Africa.