South African agricultural technology firm Nile has secured nearly R200 million in new funding, led by AfricInvest through its Cathay AfricInvest Innovation Fund with co-investment from the Dutch entrepreneurial development bank FMO, to expand its unique digital ecosystem that connects farmers across the entire value chain. The investment, which follows a period of rapid growth where the platform moved an estimated 200,000 tonnes of fresh produce annually, is earmarked to fund the expansion of its core offerings: a dedicated production inputs marketplace, broader market access for fresh produce, and a major push into data-driven financial services.
The company is moving past its Minimum Viable Product (MVP) phase for its inputs marketplace—where farmers purchase essentials like fertiliser, chemicals, and packaging—to build a system specifically engineered for these large-scale agricultural supplies. Co-founder Louis de Kock highlighted the logistical complexity, contrasting it with general e-commerce: Nile aims to deliver 100% of products within 24 hours. The firm’s innovative, inventory-less model leverages its main Gauteng hub, where suppliers deliver products ordered by the farmer, who then conveniently loads the inputs for the return trip after dropping off their fresh produce. This system, which also uses rural collection points, dramatically cuts down turnaround time for farmers, increasing efficiency and saving them money with lower operating margins, sometimes resulting in 20–30% savings on packaging material.
Beyond inputs, Nile is expanding its fresh produce sales reach by establishing more secondary hubs in rural areas to tap into the lower-LSM, informal market, allowing farmers to sell lower-grade produce that would otherwise be difficult to move. On the export front, the platform, which already facilitates transactions with 50 countries, is setting its sights on further growth, with a strong focus on Southeast Asia, particularly India, through existing digital platform partners. The final pillar of their strategy is data monetisation. By processing the vast amount of transaction data from both the input and sales sides, Nile plans to move into short-term bridging finance, assessing a farmer’s risk and ability to offer quick credit where traditional banks are often slow or unwilling. Furthermore, this data capability will be used to predict price movements and provide farmers with crucial, insightful information on profit margins.
The rapid adoption of Nile’s platform, which is a key attraction for development banks and investors seeking a positive societal impact, is unique globally. De Kock notes that trust, often built through word-of-mouth recommendations from neighbours, remains a major factor in adoption. The company is actively addressing hurdles like connectivity by integrating channels like WhatsApp into their software development. While large farmers have an almost 100% adoption rate due to dedicated office staff, Nile is building simpler, lower-input interfaces and free software—such as tools to help digitalise packhouses—to encourage smaller and medium-sized farmers to come on board. This co-creation process, driven by farmer feedback, ensures the technology remains relevant, cementing Nile’s belief that those embracing digitalisation are the ones moving ahead in South Africa’s agricultural sector.
