[Transcript] #64: Twiga Foods - How the AgriTech supply chain company is connecting SMB retailers and smallholder farmers to improve food logistics across Kenya and Africa
Transcript for podcast originally recorded on June 2023
😉 In June 2023, we explored the story of Twiga, the African agricultural supply chain company. Twiga Foods was founded in 2014 by Peter Njonjo and Grant Brooke to address inefficiencies in the agricultural supply chain in Kenya. Initially focusing on the fragmented produce market, their core product was a mobile platform enabling retailers to order fresh produce, which Twiga then sourced from farmers and delivered, generating revenue through delivery fees and commissions on sales.
Twiga eventually became of the largest buyers of fresh produce in the country. Through its innovative supply chain model, they reduced post-harvest losses from 30% to just 4%, ensuring more produce reaches consumers. This impact translates to increased food security, a crucial factor for Kenya's stability and growth.
However, since we recorded in June 2023, Twiga has had several significant (mostly negative) developments:
CEO Sabbatical and Leadership Changes: In December 2023, Twiga Foods announced that CEO Peter Njonjo would take a six-month sabbatical to focus on personal matters. Eventually, in April 2024, Charles Ballard was appointed as the new CEO, marking a significant leadership change for the company
Financial and Legal Challenges: Twiga Foods has faced financial difficulties, including a dispute with cloud services provider Incentro Africa over unpaid bills.
Layoffs and Restructuring: In August 2023, Twiga Foods reduced its workforce by approximately 283 employees, about one-third of its permanent staff, due to challenging market conditions. The company also disbanded its in-house delivery team and introduced a logistics marketplace.
Debt Resolution Efforts: In November 2023, Twiga Foods announced efforts to clear outstanding dues to over 100 suppliers as part of its restructuring and refinancing processes. This move aimed to alleviate financial pressures and maintain supplier relationships.
Operational Changes: The company has been adjusting its business model to improve efficiency. This includes outsourcing logistics services and closing some depots to streamline operations
I wish them the best of luck!
Companies discussed: Twiga Foods, Apollo Agriculture, Vendease, Kibanda, Kellogg, Tolaram, Multipro, Olam, Dangote, Coca-Cola, Shoprite, Cargill, Nestle, Unilever & Safaricom (M-Pesa)
Business concepts discussed: Agriculture technology (AgTech, AgriTech or AgroTech), Agribusiness marketplaces, farming financing, Farmer market access opportunities, SMB Retail, B2B solutions and Agriculture Logistics.
Enjoy!
Olumide Ogunsanwo
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Afrobility Podcast: Stories and analyses of African technology companies (Website, Listen: Apple podcasts, Spotify & Google podcasts & Read: Substack Newsletter)
Adamantium Fund: African B2B fund focused on education, health, finance, food and transportation (Website & memo)
Firedom Book: Financial Independence stories of African Immigrants (Website, Substack Newsletter & Buy: Print, eBook or Audiobook)
Transcript starts here
[00:00:00] Olumide Ogunsanwo: Today we're going to talk about Twiga foods. We'll explore the story across the following six areas. 1) African Agricultural context, 2) Kenya's farming and produce market access context. , 3) Early history, 4) Product and monetization strategy, 5) Competitive position & exit options. 6) Overall outlook. This episode was recorded on May 28th, 2023.
[00:00:25] Bankole Makanju: It's been a long time. How are you doing, man? It's been a minute since we recorded, or did anything related to Agriculture.
[00:00:30] Olumide Ogunsanwo: I'm alive and kicking. I'm curious about this company. It's a different beast. In simple English. It's a B2B marketplace that connects farmers to vendors to improve efficiency in the supply chain in Kenya.
[00:00:43] Bankole Makanju: Yeah. It’s an AgriTech startup that runs the mobile-based B2B food supply platform that supplies fresh fruits and vegetables from farmers in rural Kenya to smaller, medium size vendors, outlets and kiosks in Nairobi.
[00:00:59] Olumide Ogunsanwo: I love all these different definitions. In advanced English, it’s a supply chain company that connects rural farmers to informal SMB retailers and reduces dependencies on intermediaries in the food supply chain. Wow. A lot of words.
[00:01:14] Bankole Makanju: Why is Twiga food important? I looked it up and they are one of Time magazine's most influential companies in 2022.
[00:01:21] Olumide Ogunsanwo: Does that mean anything? Isn’t that usually a curse?