Ethiopia - Startup under 3 years old

Describe your project or startup in a few words

At Armada Agriculture, we provide a diversified and digitally enhanced one-stop shop for agricultural mechanization services on usage basis, significantly increasing farm efficiency and productivity.

01.01 Describe your startup in more detail

ARMADA Agriculture provides practical and affordable mechanization solutions designed to meet the diverse needs of farmers, from land preparation to harvesting. Our mission is to bring Ethiopian agriculture into the future with reliable access to affordable mechanization services and inputs that ensure high quality, sustainable, and competitive agricultural production enhanced by and delivered through digital means. We offer a range of services, including the rental of tractors and various farming implements, and equipment maintenance through flexible financing. Additionally, we provide comprehensive training programs and expert advice to ensure farmers can make the most of these tools and techniques.

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

Food insecurity is a significant issue in agriculture, as the agricultural sector struggles. Despite employing 80% of the population, agriculture faces challenges such as high cost associated with agricultural machinery, limited access to inputs, technology gap and poor output levels. As a result, many farmers continue to live in poverty, sparking a trend of migration among the younger generation on harrowing journeys across oceans.

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

Our services offer several major advantages that significantly benefit farmers. By providing necessary equipment on a usage basis, we optimize resource use and eliminate the financial and logistical burdens of ownership. This approach addresses the lack of agricultural mechanization, which accounts for 50% of the yield gap. We also offer affordable services with flexible financing options, allowing farmers to pay when they sell their yield. Our tractors, fitted with GPS technology, ensure optimal routing, scheduling, and maintenance, leading to increased efficiency and productivity. Additionally, we utilize satellite imagery for detailed farm analysis, including soil moisture levels, enabling farmers to make informed decisions about crop management, ultimately enhancing soil health and crop yields. Beyond these benefits, our operations contribute to job creation, with a particular focus on empowering women and rural youth.

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

Small-scale Individual Farmers: These farmers often operate on limited land and resources, benefiting from our affordable and accessible mechanization solutions to enhance productivity and sustainability. Small-scale Farmer Clusters: Groups of small-scale farmers who collaborate or belong to cooperatives can leverage our services to collectively improve their farming practices and output. Large-scale Commercial Farms: Larger agricultural enterprises benefit from our advanced technologies and comprehensive support services, optimizing their operational efficiency and profitability. Youth: We aim to create job opportunities and engage rural youth in modern farming practices, contributing to community development and reducing rural unemployment.

01.05 When was your company established?

2022-12-05

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

4

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.)

Semegn Tadesse Experience: Experienced technology professional with expertise in design, outsourcing, agriculture, and data companies. Has an in-depth understanding of user behavior. Eyoeal Kefyalew Experience: Experienced marketer with a decade of experience in advertising and branding. He enjoys photography and have been featured in exhibitions and awards. Mikias Atskemariam Experience: Software Architect with 5 years of extensive experience in technology consultancy and building products in EdTech and FinTech. Forward-thinking in developing ML-empowered complex distributed platforms. Michael Berhanu Experience: Experienced finance professional who managed ARMA Studios’ finances for 10 years. Demonstrated success in managing the company’s growth and working with the same team for a decade.

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

https://armadaeth.com/

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

By improving agricultural practices and increasing farm productivity, we directly contribute to elevating the economic status of farmers and their families.

02.02.01 My startup contributes to the Zero hunger goal

7 - Strongly Agree

02.02.02 Zero hunger - Justification for my startup

We focus on increasing yield and income for smallholder farmers. By implementing modern farming techniques and providing training on efficient agricultural practices, we've seen a significant increase in crop yields and reduction in post-harvest losses. For example, through the adoption of best practices in land preparation, farmers in our program have experienced an average yield increase of 20%. Our efforts are aimed at further increasing yield to ensure food security for the community.

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

3

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

02.04.01 My startup contributes to the Quality education goal

3

02.04.02 Quality education - Justification for my startup

02.05.01 My startup contributes to the Gender equality goal

5

02.05.02 Gender equality - Justification for my startup

we a are actively involved in job creation, with a particular focus on women and rural youth. Our approach prioritizes the representation of women and youth at all levels by providing recruitment, training, and employment opportunities. This initiative aims to empower individuals to become independent contractors or gain valuable experience as employees in the agricultural sector.

02.06.01 My startup contributes to the Clean water and sanitation goal

1 - Strongly Disagree

02.06.02 Clean water and sanitation - Justification for my startup

02.07.01 My startup contributes to the Affordable and clean energy goal

2

02.07.02 Affordable and clean energy - Justification for my startup

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

We prioritize mechanization and digitalization in farming operations to create more efficient and sustainable agricultural environments. By introducing modern machinery for tasks like plowing, we've reduced the labor intensity of farming within our community and created jobs for more than 20 rural youth.

02.09.01 My startup contributes to the Industry innovation and infrastructure

4

02.09.02 Industry innovation and infrastructure - Justification for my startup

02.10.01 My startup contributes to the Reduced inequalities goal

4

02.10.02 Reduced inequalities - Justification for my startup

02.11.01 My startup contributes to the Sustainable cities and communities goal

2

02.11.02 Sustainable cities and communities - Justification for my startup

02.12.01 My startup contributes to the Responsible consumption and production goal

3

02.12.02 Responsible consumption and production - Justification for my startup

02.13.01 My startup contributes to the Climate action goal

5

02.13.02 Climate action - Justification for my startup

We promote conservation agriculture practices to mitigate the environmental impact of farming.

02.14.01 My startup contributes to the Life below water goal

1 - Strongly Disagree

02.14.02 Life below water - Justification for my startup

02.15.01 My startup contributes to the Life on land goal

4

02.15.02 Life on land - Justification for my startup

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

02.17.01 My startup contributes to the Partnerships for the goal

2

02.17.02 Partnerships for the goal - Justification for my startup

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

2

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

3

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

3

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

7 - Strongly Agree

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

3

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.

5

06.08 Justification for my startup

Our service represents a significant improvement on existing solutions and addresses unmet demand. While few farmers currently use machinery, our platform integrates IoT technology and data-driven decision-making, providing precision and efficiency. We are consistently innovating; in addition to our current services, we are developing a marketplace for agricultural machinery and inputs with integrated farm advisory. On average, we receive three calls per day nationwide, without any marketing, requesting mechanization services. Because we cannot fulfill all these demands alone, we are developing a platform where other farmers who own agricultural machinery can connect with other farmers nearby, like Uber but for farming equipment.

06.09 Competitive Analysis

In the agricultural mechanization sector in Ethiopia, we face competition from both agricultural machinery dealers and traditional farming practices. However, ARMADA Agriculture maintains a strong competitive advantage due to our unique offerings and strategic focus. Unlike other players, our integration of digital technology into the mechanization process sets us apart from traditional methods. By combining advanced machinery with digital platforms, we offer a holistic solution that optimizes productivity, efficiency, and sustainability. Additionally, our utilization of IoT technology enables us to provide farmers with data-driven tractors and implement selection, further enhancing their operational efficiency.

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

As the former president of the Automotive Engineering Association at my university, I promoted girls involvement in STEM fields. I helped scale a job-matching platform that facilitated 70,000 job matches, with 54% of them being women. Currently, I'm working on expanding this initiative to include digital upskilling for women. I have spoken at various events supporting female entrepreneurship in tech and agriculture, including as a panelist at the Commonwealth Heads of Government Meeting (CHOGM) 2022 in Kigali, Rwanda. Additionally, I am a Goldman Sachs 10,000 Women alumna. I have also recently mentored young women in agriculture at the Women in Tech Hackathon themed "Bridging the Digital Divide in Agriculture: Agritech for Inclusive Access to Market and Finance," supported by the International Trade Centre (ITC), the Ministry of Foreign Affairs of the Netherlands, CARE Ethiopia, and UN Women.