YC-backed startup ThriveAgric raises $3.93 million in commercial paper sale
The move marks ThriveAgric's first foray into Nigeria’s debt capital markets and opens another channel beyond bank lending for a company whose core challenge has long been access to the right kind of capital.
ThriveAgric, a Nigerian agritech startup backed by Y Combinator, has successfully raised $3.93 million through a commercial paper sale. This marks the first issuance of its planned $50 million program, which could potentially grow even larger. The Series 1 issuance, announced on Tuesday during a signing ceremony in Lagos, was oversubscribed and attracted institutional demand above the initial $3.7 million target.
CEO Uka Eje explained that this move is better suited for the company's operations, as it provides working capital for buying produce from smallholder farmers and supplying them to off-takers, including food processors and FMCG companies. The debt financing strategy will complement the company's existing model of financing farmers and connecting their harvests to buyers.
ThriveAgric plans to use the funds to expand its agricultural trading operations across its operating hubs in Nigeria, Ghana, Kenya, Uganda, and Rwanda. The capital market route offers cheaper, more suitable debt for the company's growth.
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