Kenya - Startup under 3 years old

Describe your project or startup in a few words

VunaPay is a platform for Agricultural Cooperatives that facilitates instant payment to smallholder farmers for produce delivered to the cooperatives.

01.01 Describe your startup in more detail

VunaPay facilitates instant payment to smallholder farmers for produce delivered to the Agricultural Cooperative or other farmer collective. We work through agricultural cooperatives by offering them an end-to-end produce and farm inputs management solution. When farmers drop off produce at the cooperative, our system instantly calculates their qualified payout amount, less any credit extended. We onboard financial partners who then disburse the payout instantly through our platform, which is repaid by the cooperative once they sell the collected produce. We collect our fee at this stage. We do not provide loans, but accelerate payment for produce already delivered.

01.02 What is the main problem you are trying to solve?

Agriculture in Africa accounts for ~30% of the GDP. 80% of agriculture in Africa is under smallholder farms. However, according to the UNEP and IFAD, 1 billion of the world's poorest 1.4 Billion people that live on $1.25 a day are actually smallholder farmers. We dug into this and discovered that although 50% of smallholder farmers are registered in Agricultural Cooperatives, more than half of them sell to middlemen at 40-80% below market value. They do this because middlemen pay instantly, as opposed to their Cooperatives societies who pay them 3 to 6 months after delivering their produce. We are therefore solving the problem of delayed payments to these smallholder farmers selling through cooperatives and other farmer collectives.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

VunaPay offers several key benefits that significantly enhance the financial ecosystem for smallholder farmers and agricultural cooperatives. Firstly, VunaPay ensures that farmers receive instant payments for their produce upon delivery to cooperatives. This immediate payout drastically improves the farmers' cash flow, enabling them to reinvest in their farms, cover essential living expenses, and avoid the financial strain caused by the traditional three to six-month payment delays. Secondly, VunaPay provides cooperatives with a comprehensive produce and farm inputs management solution. This system streamlines the cooperative's operations by instantly calculating payouts, accurately tracking credit extended to farmers, and efficiently managing the repayment process. As a result, cooperatives experience enhanced financial transparency and operational efficiency, reducing administrative burdens and minimizing errors. Thirdly, VunaPay bridges the gap between cooperatives and financial ins

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

VunaPay primarily benefits smallholder farmers within agricultural cooperatives in the operational geographies. However, specific quantitative and qualitative data on overall beneficiaries, such as the number of farmers or cooperatives engaged, are not provided. The platform aims to empower these farmers by addressing delayed payment challenges and improving transparency in agricultural transactions. The SMS receipts received by farmers upon delivering produce indicate an early positive impact on transparency and trust within the cooperative system. As VunaPay progresses, gathering comprehensive data on the number of beneficiaries, their experiences, and the broader impact on the agricultural sector will be crucial to fully assess the platform's effectiveness and reach.

01.05 When was your company established?

2023-05-13

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

2

01.08 Among the other owners, how many are female?

1

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

VunaPay boasts a robust organizational structure with a team of seasoned founders who bring diverse expertise to the venture. Judy Njogu-Mokaya, the CEO, brings 5 years of experience in Innovation and Product Management at Safaricom, followed by 5 years in SaaS sales leadership across Africa at Oracle. She co-founded a startup valued at over $3 million and has a background in a family business in farming.Ian Wambai, the CTO, has 10 years of software development experience, including work with a payment service company and an agricultural project with Heifer International. He specializes in AI technology, product design, and has built 15 mobile applications.

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://www.vunapay.com/, https://www.linkedin.com/company/vunapay/, https://www.facebook.com/vunapay

01.11 Which industry best describes your project?

l) Farming

02.01.01 My startup contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification for my startup

VunaPay directly addresses poverty among smallholder farmers by providing instant payments for their produce. This immediate cash flow helps farmers meet their daily needs, invest in their farms, and avoid exploitative middlemen, thus contributing to reducing poverty in agricultural communities.

02.02.01 My startup contributes to the Zero hunger goal

6

02.02.02 Zero hunger - Justification for my startup

By ensuring farmers have immediate funds, VunaPay enables them to invest in better seeds, fertilizers, and farming equipment, which can lead to increased agricultural productivity and food security. Additionally, stable income helps farmers maintain consistent food supply for their families.

02.03.01 My startup contributes to the Good health and well-being goal

4

02.03.02 Good health and well-being - Justification for my startup

NA

02.04.01 My startup contributes to the Quality education goal

4

02.04.02 Quality education - Justification for my startup

NA

02.05.01 My startup contributes to the Gender equality goal

5

02.05.02 Gender equality - Justification for my startup

VunaPay's financial empowerment extends to female farmers, who make up a significant portion of the agricultural workforce in many regions. By providing immediate payments, VunaPay helps address the financial disparities and barriers that often disproportionately affect women in agriculture.

02.06.01 My startup contributes to the Clean water and sanitation goal

4

02.06.02 Clean water and sanitation - Justification for my startup

NA

02.07.01 My startup contributes to the Affordable and clean energy goal

3

02.07.02 Affordable and clean energy - Justification for my startup

NA

02.08.01 My startup contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification for my startup

VunaPay promotes economic growth by improving the financial stability of smallholder farmers, leading to increased productivity and investment in agriculture. The platform also supports cooperatives in managing their finances more effectively, contributing to sustainable economic practices and decent work conditions.

02.09.01 My startup contributes to the Industry innovation and infrastructure

6

02.09.02 Industry innovation and infrastructure - Justification for my startup

VunaPay leverages financial technology to provide innovative solutions for payment and farm management, enhancing the agricultural infrastructure. By integrating with financial institutions and cooperatives, VunaPay fosters an ecosystem that supports industrial innovation and improved agricultural processes.

02.10.01 My startup contributes to the Reduced inequalities goal

6

02.10.02 Reduced inequalities - Justification for my startup

By providing equitable access to financial resources and immediate payments, VunaPay helps reduce economic inequalities among smallholder farmers, particularly those in underserved rural areas. The platform ensures fair compensation for produce, leveling the playing field between smallholders and larger agricultural players.

02.11.01 My startup contributes to the Sustainable cities and communities goal

4

02.11.02 Sustainable cities and communities - Justification for my startup

NA

02.12.01 My startup contributes to the Responsible consumption and production goal

6

02.12.02 Responsible consumption and production - Justification for my startup

VunaPay's management system for cooperatives helps track and optimize resource use, promoting responsible production practices. Instant payments also encourage farmers to adopt sustainable farming methods as they are no longer forced to sell at lower prices for immediate cash.

02.13.01 My startup contributes to the Climate action goal

4

02.13.02 Climate action - Justification for my startup

NA

02.14.01 My startup contributes to the Life below water goal

3

02.14.02 Life below water - Justification for my startup

NA

02.15.01 My startup contributes to the Life on land goal

3

02.15.02 Life on land - Justification for my startup

NA

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

3

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

NA

02.17.01 My startup contributes to the Partnerships for the goal

5

02.17.02 Partnerships for the goal - Justification for my startup

VunaPay exemplifies the power of partnerships by collaborating with financial institutions, cooperatives, and technology providers. These partnerships enhance the platform's ability to deliver financial solutions and support sustainable development goals, demonstrating the effectiveness of collaborative efforts in achieving SDGs.

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

3

06.02 The product/service represents an entirely new type of product/service.

6

06.03 The product/service could be described as a new technology.

6

06.04 The product/service is an improvement on an existing product or service.

6

06.05 The product/service could be described as an extension of a range of products or services.

6

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

06.07 The product/service is a new version of an old product/service.

6

06.08 Justification for my startup

VunaPay is an innovative financial solution tailored to address the specific needs of smallholder farmers and cooperatives. While traditional financial services exist, our platform offers a unique combination of instant payments, farm management, and integration with financial partners, which is not commonly available. This service directly addresses the critical issue of delayed payments and provides a new technology-driven solution that significantly improves the economic stability of farmers and operational efficiency of cooperatives.

06.09 Competitive Analysis

Our main potential competitors include traditional microfinance institutions and informal middlemen who provide immediate payments to farmers. However, VunaPay stands out by offering a comprehensive digital solution that not only ensures instant payments but also integrates farm input management and financial tracking for cooperatives. Our partnerships with financial institutions enhance our ability to provide scalable and reliable services, setting us apart from competitors who may lack such comprehensive and integrated offerings.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?

Organising workshops for female farmers, and providing mentorship to female entrepreneurs in the agricultural sector