Kenyan agri-tech company Twiga Foods has acquired majority stakes in three local fast-moving consumer goods (FMCG) companies as it pivots from being a fresh produce supplier into a full-service FMCG platform.
Founded in 2014, Twiga is a B2B food distribution company that builds fair and reliable markets for agricultural producers and retailers through transparency, efficiency and technology.
The startup operates a B2B e-commerce system to simplify the supply chain between fresh food producers, FMCG manufacturers and retailers, that removes the need for many intermediaries, significantly lowering the cost of food for consumers.
Twiga raised a US$50 million Series C round in 2021, and US$35 million more in late 2023, but has found the going tough since. It has struggled to raise new capital in the wake of the global capital shortage, cut its workforce by 40 per cent in 2023, and has faced claims of delayed vendor payments and staff salaries. Founding CEO Peter Njonjo stepped down last year, to be replaced by former Jumia Kenya executive Charles Ballard.
It is now undergoing a pivot, and to accelerate this has acquired local FMCG distributors the Jumra, Sojpar, and Raisons. The acquisitions are aimed at strengthening Twiga’s procurement capabilities, and widening its footprint across the Central, Western, and Coastal regions.
“This strategic alignment underscores Twiga’s commitment to modernising Kenya’s food distribution landscape. The combined strengths will enable a digitally powered distribution model that delivers enhanced value to Kenyan retailers and consumers,” Twiga said in a statement.
