Uganda’s Emata raises $2.4m to scale agricultural lending
1 min Read September 15, 2023 at 1:00 PM UTC

Highlights
- Ugandan agritech startup Emata has raised $2.4 million in seed funding comprising $800,000 in equity and $1.6 million in on-lending capital.
- Founded in 2020, Emata offers farmers affordable, digital financing. In place of collateral requirements, the company creates alternative credit scores based on data points like a farmer’s delivery history.
- The startup plans to use this new investment to expand its agri-loan offering across East Africa – both within its debut market of Uganda and via international expansion, focusing on its core dairy and coffee markets.
Source: TechCabal
Our Takeaway
The need for agricultural finance in Sub-Saharan Africa is estimated at $240 billion by consultancy firm Dahlberg, with the value of Emata’s target markets in East Africa being $13 billion. As East Africa rapidly digitizes, Emata’s business model addresses the lack of agricultural financing – by providing automated loans to farmers. This reduces cost and enables lending to smallholders at rates 5x more affordable than the informal loans they have often relied on to date. Instant lending and data-based decisions also benefit all farmers, without the need for collateral.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
Get weekly insights, and latest news on African Public Markets, Startups, and Economy


