Grainpulse, a Ugandan agritech startup has secured $11 million loan from the International Finance Corporation (IFC) and the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP).
Grainpulse will use the loan to become a platform for farmers by providing them with multiple services, such as fertilizer blending.
The company’s fertilizers are optimized to increase the yields of crops grown by Ugandan smallholder farmers. Grainpulse also buys these crops, including coffee, maize, and barley, from local farmers.
In a statement, Hannington Karuhanga, Grainpulse CEO and Founder, said, “Our partnership with IFC will help Grainpulse move to the next stage of growth.
“We chose to work with IFC because it takes a long-term view of our partnership and adds value beyond financing, in areas such as farmer linkages. We are aligned with IFC on our goal of supporting Ugandan farmers.”
With the funding, the agritech startup will launch an online platform so farmers can easily access information on best practices, and train agro-input dealers and retailers on financial management skills to help them expand and secure access to finance.
Grainpulse, which was formerly known as Savannah Commodities Company, processes and exports coffee, sources and mills grain and cereals from local farmers, and blends fertilizer at its blending plant, the first in Uganda.
In September 2018, Grainpulse formed a joint venture between Savannah and K+S AG, a global potash and salt company headquartered in Germany.
Tomasz Telma, IFC’s Senior Director for Manufacturing, Agribusiness, and Services, said, “Supporting the agribusiness sector is a major focus for IFC in Africa.
“This investment in Grainpulse will contribute to food security and economic growth in Uganda by helping increase farmers’ fertilizer use and improving their access to markets.”
