Twiga – A B2B Agritech Startup`s Innovative Solution to Improve Food Security in Kenya
| Case Code: ITSY133 Case Length: 16 Pages Period: 2012-2020 Pub Date: 2023 Teaching Note: Available |
Price: Rs.400 Organization: Twiga Industry: Food & Beverage Countries: Kenya Themes: Supply Chain Management, Entrepreneurship |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
An Idea is Born
Brooke, raised in Texas, was educated at Princeton. He joined Oxford to pursue his doctorate degree. He was in Kenya in 2008 as a social economist to conduct research on how religion affected the purchasing and credit decisions of small business owners in Nairobi. At that time, he interacted with some of the vendors and Mama Mbogas in the agricultural produce market. He found that the vendors were not getting good quality stock..
‘Twiga’ Takes Off
Brooke and Njonjo chose one produce, banana, to build the distribution network. In the beginning they started taking orders from the vendors by convincing them that they could get fresh produce delivered to them at a lower price..
The Business Model
Brooke, while doing his research, gained a thorough understanding of the informal retail in the country, while Njonjo knew the intricacies of distribution all over the continent due to his association with Coca-Cola’s structured the retail process . They took about 18 months to start the venture..
Improving Livelihoods
Among the staff at Twiga’s collection centers were agronomists who provided advice and service to farmers on achieving higher crop yields, adopting sustainable agriculture methods, etc. Twiga planned to add agricultural inputs, distribution networks, and financial services and develop the collection centers as access points for other basic goods..
Driving Food Security
According to experts, Twiga had transformed agriculture in Kenya and the benefits were reaped by all the stakeholders. The farmers were offered a guaranteed offtake along with transparent prices. Twiga’s platform aggregated the purchasing power of farmers across the country. This allowed them to access markets at better prices..
Looking Ahead
Twiga planned to use the US$ 30 million from Goldman Sachs (US$ 6.25 million in convertible debt and US$ 23.75 equity) to develop a distribution center in Nairobi for agricultural produce as well as FMCG goods..
Exhibits
Exhibit I: About Kenya
Exhibit II: Twiga – Funding
Exhibit III:
Twiga – Core Values
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