Photo - Farmula
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Farmula

The future of food distribution in Africa

Nigeria
Market: Logistics and warehouses, Food industry, Financial services
Stage of the project: Operating business

Date of last change: 14.04.2021
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Idea

Farmula is building the B2B digital infrastructure that directly connects producers to retailers along the food supply chain.

Current Status

Our product is live in the market. We are building the first digital distributed-distribution system which allows us partner with Distributors. We currently are growing our distributors at 12%WoW and have recorded over $1 million in transactions over the platform since launch in February.

Market

Distributors
Retailers
Riders

Problem or Opportunity

1. The first is that almost every aspect of food distribution is still manual, everything's still on paper. So, it's not just the sales, but even collections, reconciliation, communication, and gathering data, the whole process is still manual, and that is a core problem. We still don't have a digital food distribution system.
2. The second problem is there's no data If you don't have digital systems, there's no way to actually collect data because you can't collect data manually. It has to be automated, and that is still very limited.
3. And lastly, the fragmentation problem. The trend you see across the continent, is hundreds of thousands of key players operating in silos. That interoperability isn't there.

Solution (product or service)

We are building a cost efficient network where we combine a distributed-distribution system with integrated logistics. What this means is we have a wide range of stock under management available for retailers to buy. And because our network of distributors is wide, it allows us provide stock at the lowest cost and in the shortest times.

To make this possible, we have a distributor inventory management app to automate the key operations of distributors.
An inventory ordering bot over WhatsApp for retailers to place orders and pay for stock easily
And, a simple logistics app to allow tuk tuk riders onboard themselves to carry out our last mile deliveries.

Competitors

Open air markets still account for over 85% of all B2B distribution done in the continent.

Advantages or differentiators

We improve automation of primary processes through digital tools tailored to the informal market.

We are collecting the largest amount of data which could never have been collected and utilised in real-time if collected manually.

We are building the possibility for interoperability between players making trade significantly easier.

Finance

We charge commissions on every sale through our platform.

On average, we charge 0.65% to distributors, a fixed charge of 20 cents to retailers for every order and 25% to logistics riders who complete deliveries over the platform.

On average, we make $2 per transaction.

Money will be spent on

Product - 25%
Hiring - 50%
Marketing - 5%
Growth - 20%

Offer for investor

15%

Won the competition and other awards

Top 500 Food startups in the World - Food Fowarding 500 (2020)
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Presentation