Village Capital’s Reducing Inequalities Investment Facility has announced a new investment of $500,000 in the Nigerian startup Coamana. This investment is part of a broader initiative backed by FMO’s MASSIF Fund, aimed at promoting financial inclusion through innovative solutions and inclusive business practices.
Investment Background
The Reducing Inequalities Investment Facility was established to support startups that address financial gaps and foster inclusive growth. To date, the fund has invested in several impactful startups, including Apontech in Bangladesh, which enhances financial inclusion for factory workers; Crop2Cash in Nigeria, which supports smallholder farmers; Aquarech in Kenya, which advances aquaculture around Lake Victoria; and now Coamana, which is the latest recipient of this support.
About Coamana
Founded in 2018 by Hafsah Jumare, Coamana emerged from her extensive research on farmers, credit, and market access. Recognizing the disconnect between academic data and the real-world challenges faced by farmers, Coamana offers a solution to bridge this gap. The startup’s product, Amana Market, leverages existing market governance structures to improve market management. By establishing agent networks, Coamana facilitates the onboarding of farmers and traders into a digital marketplace, providing them with essential services such as market information, high-quality inputs, and credit.
Impact on Traditional Markets
Traditional markets are crucial to Africa’s agricultural economy, serving as vital hubs for smallholder farmers. Despite their importance, these markets face challenges that limit their potential and impact livelihoods. Coamana’s vertical SaaS solution transforms these markets by digitizing management processes, thus facilitating faster, safer, and more reliable transactions. Amana Market integrates with existing market structures, offering credit, real-time information, and high-quality inputs, which enhances market efficiency and supports local economies.
Quotes from Stakeholders
“This investment marks a pivotal moment for Coamana, acting as a catalyst for our future ambitions. Village Capital has been an unwavering partner, deeply understanding the communities and markets we serve,” said Hafsah Jumare, Founder and CEO of Coamana. “Having a partner who not only supports but truly understands our mission is both galvanizing and validating.”
Kavon Badie, Investment Officer at Village Capital, commented, “We are excited to invest in Coamana to advance its efforts in building digital infrastructure for agricultural markets across Africa. This investment will drive price transparency, market efficiency, and access to finance. Coamana’s innovative approach to leveraging existing market structures to improve efficiencies aligns perfectly with our fund’s goal of fostering financial inclusion and reducing rural inequality.”
Future Prospects
Operating in Nigeria and Kenya, Coamana has built a robust network of agents that help onboard farmers and traders to the digital marketplace. The startup’s solutions provide significant economic benefits by offering real-time market data and optimizing sales. Coamana’s approach strengthens market resilience and supports economic growth in rural areas, enhancing traditional markets with digital services for long-term success.
