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Case Code: LDEN142
Case Length: 17 Pages 
Period: 2015-2019   
Pub Date: 2019
Teaching Note: Available
Price: Rs.500
Organization : SunCulture
Industry :Agriculture Related Services
Countries : Kenya
Themes: Social Entrepreneurship/ Entrepreneurial finance
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

SunCulture: Bringing Smart Technology to Smallholder Farmers

 

ABSTRACT

 
SunCulture, a Kenya-based start-up which offers a solar-powered based irrigation kit to improve the productivity of the smallholder farmers, evolved in a short period of time to become a leading technology solution provider to the smallholder farmers. And this, despite the fact that the company faced many challenges which included competition from cheap copy cats and fund managers reluctance to finance unless SunCulture changes its business model to suit their criterion. SunCulture worked closely with its customers on the ground to understand their problems and challenges and used their feedback to work with its partners such as Microsoft, the EDF Group, Energy Access Ventures, and Shell Foundation and came up with innovative solutions. SunCulture is a pioneer in bringing smart technology within the reach of the smallholder farmers by leveraging on GSM connectivity, IoT technology, and Machine Learning. With the smallholder farmers in Africa seeing a 300% increase in yields, reduction in the use of fertilizers, diesel, and water, and an ability to earn up to US$30,000 per acre per year, SunCulture is achieving the triple bottom line and playing an important role in achieving SDG goals. Offering smart technology to more than 570 million smallholder farmers is a great opportunity but it also has its challenges. In a bid to improve the productivity of the entire smallholder farmer’s household, the company is planning to launch a variety of appliances like TVs pressure cookers and egg incubators with the goal of solving the biggest challenges facing these households on a daily basis.

The case study covers the challenges specific to various functions of management and entrepreneurship faced by SunCulture in its entrepreneurial journey so far and the impact it had on the small hold farmer while stressing on the need for continuous innovation, the importance of working with technology partners, and the challenges of raising financing from impact investors. The case also provides for discussion on whether SunCulture should launch household appliances or concentrate only on offering smart and evolving technology to farmers to improve their agricultural yields and profits.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • To analyze the problems and challenges a social enterprise faces at its inception.
  • To understand the various financing options available to a social enterprise and the challenges involved in convincing fund managers and investors.
  • To understand how the social enterprise works on the triple bottom line and contribute to achieving the Sustainable Development Goals (SDGs).
  • To understand the complexity involved in working with various partners and stakeholders in order to bring smart technology to the bottom of the pyramid (BOP).
  • To analyze the compulsions of decision making by viewing the alternatives available.
  • Analyze the role played by collaboration and partnership with governments in offering a solution to the ‘Bottom of the Pyramid’ segment.
Contents
INTRODUCTION
KENYAN AGRICULTURE
BUILDING ON THE IDEA
SOLUTION: AGROSOLAR KIT
MANAGING RISKS AND CHALLENGES
LEVERAGING ON SMART AND EVOLVING TECHNOLOGY
CREATING AN IMPACT
FUNDING AND PRESSURE TO CHANGE BUSINESS MODEL
DILEMMA AND THE DECISION
GOING BEYOND: WHAT NEXT?
EXHIBITS

Keywords

Off-grid solar power, AgroSolar Irrigation Kit, Pay as you grow, Triple bottom line, Competitors, Sustainable Development goals, Bottom of the pyramid, Sustainable business models, Product strategy, SIN problems,

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