wefarm Secures $11M to Grow Farmer Network to 2.5 Million Users

Wefarm Secures Funding to Expand Social Network for Small-Hold Farmers

A significant number of startups concentrate on consumer markets, knowledge workers, and digitally-integrated businesses. However, recent news highlights investment in a startup targeting a traditionally non-digital sector: independent, small-scale farmers in developing nations.

Wefarm's Growth and Mission

Wefarm operates as a social networking platform designed to connect independent farmers. It facilitates the exchange of ideas, advice, and the buying/selling of equipment and supplies. The company has successfully raised $11 million in funding to further its expansion, now boasting a user base of 2.5 million.

Global Market Opportunity

Considering the scale of the opportunity, Wefarm estimates that approximately 400 million small-hold farmers exist worldwide. A substantial portion of these farmers are located in developing markets, representing a vast potential user base.

Investment Details

This funding round is an extension of the company’s 2019 Series A. Octopus Ventures is leading the investment. True Ventures, Rabo Frontier Ventures, LocalGlobe, June Fund, and AgFunder also participated in this round.

Since its founding in 2015, Wefarm has secured a total of $32 million in funding.

Current Operations and User Access

Currently, Wefarm has achieved considerable traction in East African countries. While a website is available, the majority of users access the platform via the company’s SMS interface, without requiring traditional internet access.

The SMS platform has facilitated over 37 million conversations among farmers, covering approximately 400 different farming types – including livestock, dairy, grains, and produce. It has also enabled $29 million in marketplace transactions.

Challenges and Expansion Strategy

Expanding SMS services can be a lengthy process. This is partly due to the need to negotiate data usage agreements with local mobile carriers.

Consequently, Wefarm has carefully managed its growth, currently utilizing a waitlist or invitation system for new members.

Future Plans: Transition to an App-Based Service

According to Kenny Ewan, Wefarm’s founder and CEO, the new funding will be allocated, in part, to the rollout of a dedicated mobile application (currently in beta).

“This transition from SMS to a digital, app-based service will eliminate the digital access barrier,” Ewan explained. “We envision this shift as comparable to the evolution from physical DVDs to online video streaming. We believe the timing is optimal and could propel us towards reaching 100 million users.”

Addressing Challenges: From Global Crises to Agricultural Support

Wefarm’s function in connecting independent agricultural producers – an industry historically characterized by traditional methods – has become increasingly noteworthy, particularly over the past year.

The COVID-19 pandemic acutely highlighted existing digital disparities worldwide, notably within the business landscape. Organizations possessing established digital strategies were able to readily adapt to new operational norms involving reduced physical contact. Conversely, those lacking such strategies were compelled to rapidly implement them to prevent significant declines in activity.

Wefarm existed for several years prior to the COVID-19 pandemic, consistently advocating for and providing a digital platform for smaller-scale agricultural operations.

The global agricultural sector – a multi-trillion-dollar industry contributing up to 25% of GDP in certain economies – has experienced considerable digital evolution. However, this transformation has largely centered on tools and technologies designed for large agribusinesses, including major corporations such as Cargill, Archer-Daniels-Midland, Bayer (the parent company of Monsanto), and John Deere.

Wefarm’s significance – and often unique position – as a resource for independent farmers to communicate, conduct transactions, and network with peers was already evident before the onset of COVID-19. When we initially reported on the company’s prior funding round in 2019 (the first phase of its Series A, totaling $13 million), its membership had already reached 1.9 million. Furthermore, for many users, the pandemic itself was not the primary concern:

According to Ewan, “Many individuals in rural Africa were more preoccupied with weather patterns or the impact of locust infestations.” He continued, “We observed increased engagement surrounding these issues, rather than COVID-19, demonstrating differing priorities.”

Nevertheless, the pandemic did have an effect. The platform functioned as a vital service for trade during periods when in-person interactions were restricted. Regarding Wefarm’s business operations, Ewan explained that the company’s expansion into new countries was temporarily suspended due to travel limitations affecting business development teams – a factor that underscored the value of a readily accessible application.

(This restriction on travel also proved advantageous for Wefarm; despite these challenges, the company still achieved a growth of 600,000 new users, as Ewan noted, highlighting the continued demand for its services.)

Looking ahead, Wefarm intends to utilize its user base, network, and the data it collects to further enhance its offerings.

Ewan stated, “We recognize the potential to deliver more comprehensive analytics and data, which our users actively desire.” He added, “We possess a unique understanding of small-scale farmers, as they directly engage with us.” Areas Wefarm is exploring for development over the next two years include providing insights into viable business models, pricing strategies, and data related to factors like crop maturation times.

Kamran Adle, an early-stage investor at Octopus Ventures, commented, “By cultivating a highly engaged community of millions of small-holder farmers, Wefarm has established a robust platform that enhances access to crucial knowledge and information, empowering farmers to maximize the economic potential of their land.” He further explained, “This could involve determining the most effective fertilizers, understanding current market prices for commodities, or adopting innovative farming techniques that improve yields – all of which can significantly improve livelihoods. The market is substantial, with over 400 million small-holder farmers globally spending approximately $400 billion on agricultural inputs, presenting a significant opportunity for Kenny and the Wefarm team to achieve substantial growth, particularly with the launch of their digital platform.”