Hatch Africa bags $9.5m to expand poultry business

STARTUP VENTURE CAPITALFebruary 3, 2024 at 12:20 AM UTC

TLDR

Hatch Africa, a poultry enterprise, has secured a $9.5 million investment from AgDevCo and IDH Farmfit Fund.
Hatch employs a unique distribution approach, providing dual-purpose breeds of day-old chicks to agents who rear them and sell them to smallholder farmers.
The investment through Flow Equity Africa Ventures (FEAV) will support Hatch's expansion in Kenya, Ghana, and Cote d'Ivoire, benefiting smallholder farmer households.

Hatch Africa, an expanding poultry enterprise with a focus on underserved rural communities, has secured a total investment of $9.5 million, featuring contributions from AgDevCo and IDH Farmfit Fund.

The company employs a unique approach, distributing dual-purpose breeds of day-old chicks through an extensive network of agents. These agents rear the birds until maturity, typically around five weeks, before selling them to smallholder farmers.

Established in 2010, the company has steadily expanded its reach to encompass 4.6 million rural households in Ethiopia, Uganda, and Rwanda, operating under the brands EthioChicken and Uzima Chicken.

Key Takeaways

The investment, channeled through Flow Equity Africa Ventures (FEAV), the holding company for Hatch's operations in Kenya, Ghana, and Cote d'Ivoire, is poised to propel the expansion of Hatch's innovative business model, extending its impact to millions more smallholder farmer households. Hatch Africa is poised for substantial growth, aiming to amplify its impact six-fold by 2030. This ambitious goal involves a significant increase in the annual sales of chickens, soaring from the current 45 million to an impressive 340 million. The company's overarching vision is to extend its influence to every farmer and strive towards a goal of providing one chicken per person per year in each country within its operational domain.

Agritech

Hatch Africa

AgDevCo

IDH Farmfit

Flow Equity Africa Venture