Pumpkn Gets Backing To Fund Agribusinesses

South African startup, Pumpkn, has raised funding from Renew Capital to address the funding gap in agriculture in Africa which hinders its growth.

Pumpkn offers and facilitates financial support for agribusinesses by leveraging data to make credit assessments of agricultural small and medium-sized enterprises (agri-SMEs). It helps lenders easily identify bankable businesses and manage their loan portfolio to make agribusiness financing commercially viable for lenders and make loans accessible for agribusinesses.

The African agricultural sector plays a significant role in the continent’s economy, contributing about 35 percent to the GDP and supporting the livelihoods of nearly half of Africa’s 1.4 billion population.

“Despite agriculture being the major GDP contributor for many African countries, many agriculture-focused businesses still have a hard time finding the financing they need to grow and thrive. Pumpkn is committed to working closely with agribusinesses to enable their growth, with a direct impact on job creation. Pumpkn seeks to fill the financing gap for agribusinesses by providing farmers and entrepreneurs with the financial resources they need to thrive,” Zaheer Dindar, co-founder and CEO of Pumpkn said in a statement.

Pumpkn stands out with its aim to provide fast loan approvals, zero paperwork and seamless accessibility. Pumpkn’s intuitive platform directly links to agri-SMEs’ bank accounts, empowering them to swiftly secure essential financing.

“We are witnessing an important shift in Africa, with technology playing a major role in boosting sectors including agriculture,” said Adam Abate, principal of investment at Renew Capital. “We are thrilled to support Pumpkn on its mission and proud to have them as our first-ever investment in South Africa.”

The platform aims to facilitate over $1 billion in financing to over 150,000 African SMEs by 2030 because SMEs have the potential to create millions of jobs and have a catalytic effect across the African continent.

Renew Capital recently invested in Rwanda’s beauty marketplace Zuri to help it reach more customers in Democratic Republic of Congo, Uganda and Rwanda and has also invested in Jamii.one, Farm-to-Feed, Tapii, FlexPay, Sawa Energy among others. Renew Capital invests on behalf of the Renew Capital Angels, a global network of angel investors, foundations and family offices who seek financial returns and sustainable social impact.