Agruppa, a startup that optimizes the current fruit and vegetable supply chain between farms and mom-and-pop shops in Bogotá, closed investments with two international impact investors for US$330k.
(Press Release) Agruppa, a startup that optimizes the current fruit and vegetable supply chain between farms and mom-and-pop shops in Bogota, closed investments with two international impact investors for US$330K, and is looking to top up its seed round with an additional US$100K to US$200K by the end of July 2017.
June 20th, 2017 – Agruppa, a Colombian social enterprise that makes fresh produce accessible and affordable to consumers in marginalized urban and peri-urban areas, closed investments with two international impact investors this week.
The Mercy Corps’ Social Venture Fund made the first investment, of $150,000, in Agruppa’s seed round sending a strong single to other investors of the company’s investment readiness. “We are excited to join Agruppa as investors and partners. In the produce value chain, we see inefficient, and in some cases exploitative, supply and distribution market systems worldwide. Farmers, small shop owners and marginalized consumers across Colombia all stand to benefit tremendously through Agruppa’s model,” said Tim Rann, a partner in the fund. Mercy Corps’ investment quickly attracted Yunus Social Business who then added $180,000 towards the round.
Agruppa’s cofounder and CEO, Carolina Medina, said, “Having Mercy Corps’ Social Venture Fund alongside Yunus Social Business as investors in our business is the key support to ensure our impact at the farmer and shop level can solidify, while attaining financial sustainability”.
These investors were attracted to Agruppa because of its quick traction in the market and high impact on farmers, small business owners and end-consumers.
Agruppa leverages mobile technology to streamline the complex supply chains of key food items by connecting produce farmers directly to mom-and-pop shops in the city. In doing so, Agruppa reduces costs, enables just-in-time delivery, and minimizes waste. By generating economies of scale, Agruppa eliminates the 45% city-markup on fruits and vegetables, ensuring low-income urban people can afford fresh produce and giving farmers direct access to a huge city market.
In just 14 months Agruppa went from a 20 store pilot to now serving 400+ mom-and-pop shops in three of the most marginalized areas of Bogotá. Through savings on produce and transportation, Agruppa mom-and-pop shops can save roughly US$1,500 per year. Since 40% of the mom-and-pop shops are below the national poverty line and 89% of them are the sole income provider for their households, this additional revenue is game-changing for them.
Agruppa plans to connect thousands of farmers with over 5,500 shops by 2021, ultimately impacting 1 million consumers in marginalized neighborhoods and sourcing 5,000 tons of produce per month.
With this financing round anchored and other financial support and partnerships with players like the World Bank, Wayra, Expo Dubai 2020, Agora Partnerships, and SociaLab, Agruppa aims to top up its seed round with an additional $100K to $200K by the end of July 2017. With this round, Agruppa aims to reach breakeven and continue scaling its impact throughout Bogota.
For additional information, please contact Timothy Rann (Senior Advisor, Mercy Corps’ Social Venture Fund) or Carolina Medina (CEO and Cofounder of Agruppa).