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Nigerian agricultural technology company ThriveAgric has raised approximately ₦5.3 billion ($3.94 million) through its first commercial paper issuance, exceeding its original target of ₦5 billion ($3.7 million) after strong demand from institutional investors.
The transaction marks ThriveAgric’s first entry into Nigeria’s debt capital markets and gives the company a new source of funding to support its expansion and working capital needs.
Uka Eje, CEO and co-founder of ThriveAgric, stated, “Beyond the numbers, this institutional backing provides us with the financial flexibility to scale our operations, deepen our outgrower networks, and ensure prompt offtake for smallholder farmers. We are deeply grateful to our investors and capital market partners for their trust as we continue to build a resilient, tech-led agricultural ecosystem across Africa.”
The Series 1 issuance was completed under ThriveAgric’s ₦50 billion ($37.18 million) Commercial Paper Programme, which received approval from Nigeria’s Securities and Exchange Commission (SEC).
The strong demand allowed ThriveAgric to increase the Series 1 issuance beyond its initial target. The company said the response from institutional investors reflects confidence in its financial position, technology platform and agriculture-focused business model.
ThriveAgric is a technology-driven agricultural company founded in Nigeria in 2017 by Uka Eje and Ayodeji (Ayo) Arikawe and fully operational since 2018.
The company works with farmers and connects agricultural producers with FMCGs and food processors. Its technology platform helps farmers access financing, improve productivity and sell their produce.
ThriveAgric uses its proprietary Agricultural Operating System (AOS) to collect and manage farm data, support field operations and identify farmers who qualify for financing.
The system can operate offline and uses USSD services alongside Android applications used by field agents. The company has expanded its operations across Africa while focusing on improving agricultural productivity and strengthening food supply chains.
ThriveAgric will use the funds to strengthen its working capital position and expand its agricultural operations across Nigeria.
The capital will support commodity procurement and aggregation, expansion of its outgrower farmer network and growth of its agricultural trading activities across its operational locations.
The additional funding is also expected to help the company improve its ability to purchase agricultural products from farmers and provide reliable market access for smallholder producers.
The ₦50 billion commercial paper programme gives ThriveAgric the option to access additional capital market funding through future issuances as its financing needs grow.
The company said it has supported more than 1.2 million smallholder farmers, facilitated more than $150 million in financing, and helped increase grain production across its operating markets.
The commercial paper issuance follows an earlier $56.4 million debt raise from local commercial banks and institutional investors, alongside a $1.75 million co-investment grant from the USAID-funded West Africa Trade & Investment Hub.
ThriveAgric previously raised $9 million in 2020. The company also reported strong growth in the period following that funding, with revenue increasing fivefold and its farmer network growing by 277% year over year.
