Releaf, a Nigerian-based tech startup, has raised $3.3 million in an oversubscribed Pre-Series A funding round. The technology company that makes it easier for consumer goods manufacturers in Africa to access high-quality ingredients for their factories.
The new funding will support the launch of two new technologies: Kraken II – a portable version of its award-winning palm nut de-sheller and SITE – a geospatial mapping application that informs the most profitable positioning of food processing assets.
The funding round was led by Samurai Incubate Africa, who re-invested after leading Releaf’s seed round, with participation from Consonance Investment Managers. Stephen Pagliuca (Chairman of Bain Capital) and Jeff Ubben (Board member at World Wildlife Fund and Founder of Inclusive Capital Partners) also invested.
SITE was developed in collaboration with Stanford University’s Professor David Lobell, a MacArthur “Genius” Fellow and Director of the Center on Food Security and the Environment, whose team led the refinement of the age identification process for oil palm trees in Nigeria. This analysis provided foundational yield data for the first layer of SITE. The application leverages cutting-edge geospatial mapping tools to determine how much oil palm is planted in an area and their annual yields, alongside Releaf’s proprietary data on soil type, rainfall, farmer productivity and 3rd-party data from organizations like the International Institute of Tropical Agriculture (IITA), Foundation for Partnership Initiatives in the Niger Delta (PIND) and Rocky Mountain Institute (RMI) to deliver a dynamic view of farming activity.
Releaf will use this dynamic data set to train Reinforcement Learning Models in SITE that identify the most optimal positioning of supply chain infrastructure for consumer goods manufacturers, creating an effective link with Africa’s decentralized farming system.
Kraken II is a portable, lower-cost version of Releaf’s Kraken – West Africa’s most advanced palm nut de-sheller. It is just as efficient as its static predecessor, costs half as much and can attain 3x profitability because it can be transported to high density farming areas, eliminating more than 80 percent of margin-eroding logistics costs. The combination of Kraken II’s portability and SITE’s placement and route planning capabilities enables Releaf to target the best opportunities across Nigeria’s oil palm belt rather than being limited to sourcing crops within 100 kilometers of a fixed processing site like existing food processors.
According to Uzoma Ayogu, CTO and co-founder of Releaf, SITE and Kraken II are the next steps in the company’s plan to fundamentally transform the efficiency of agricultural supply chains in Africa.
“We are excited to have partnered with an exceptional cohort of investors and collaborators to roll out these technologies. To make food supply chains profitable, we must maximize extraction yields with leading processing technology and minimize logistics costs by bringing processing capacity closer to farmers. Before Releaf, stakeholders had to choose between one or the other – large factories had great technology but were far away, leaving most farmers with rudimentary technology to process their crops. We’re now able to maximize both,” Uzoma said.
Africa will represent 40% of the human population by the end of the 21st century and the fast-moving consumer goods market will emerge as its first globally relevant industrial sector. Releaf’s technology is designed to accelerate this industrialization while ensuring inclusive success for the planet, farmers, food factories, and consumers in one of the greatest economic opportunities globally.
Since launching in 2021, Releaf has used its supply chain technology to process more than 10 million kilograms of palm nuts and grown its monthly revenue 7X year on year. The company has also secured more than $100 million in supply contracts from leading consumer goods manufacturers, including Presco, PZ Cussons, and more. The company’s valuation has tripled since its seed round a year ago.