Poultry business raises $9.5m from AgDevCo and IDH Farmfit Fund
Poultry business raises $9.5m from AgDevCo and IDH Farmfit Fund
Hatch Africa has secured a combined $9.5 million investment.
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Hatch Africa, a poultry business targeting underserved rural households, has secured a combined $9.5 million investment with participation from AgDevCo and IDH Farmfit Fund.
The investment into Flow Equity Africa Ventures (FEAV), the holding company for Hatch’s operations in Kenya, Ghana, and Côte d'Ivoire, will scale Hatch’s business model to millions more smallholder farmer households.
Hatch Africa distributes dual purpose breeds of day-old-chicks through a large network of agents, who rear the birds to maturity at around five weeks before selling them to smallholders. Hatch chickens are well-suited to being raised in “backyard” conditions and its customers typically own between 5 and 20 birds each.
Compared to indigenous breeds, Hatch chickens grow faster, lay more eggs and are more resistant to disease.
Founded in 2010, the company now reaches 4.6 million rural households in Ethiopia, Uganda, and Rwanda, where it operates under the brands EthioChicken and Uzima Chicken. In Ghana and Côte d'Ivoire, Hatch will operate under the brand Premier Poultry and Prestige Poultry respectively. Kenya will adopt the Uzima Chicken brand, which means ‘full of life’ in Swahili.
Co-founder Joseph Shields said, “We couldn’t achieve the scale of impact and commercial progress Hatch Africa is making without the support of committed, long-term investors like AgDevCo and IDH, who understand our markets and can provide flexible financing that suits our needs. We are excited about our next phase of growth, building Hatch Africa into a truly pan-African business.”
AgDevCo’s managing director for East Africa, Rebecca Sankar said, “We are pleased to continue funding Hatch as it grows beyond Ethiopia. This is our third round of investment into the company, in each case supporting greenfield expansion. We look forward to working with the management team to deliver more impact, including higher incomes and improved nutrition for rural households, across East and West Africa.”
“I am proud that the IDH FarmFit Fund provided debt funding to Hatch Africa, for expansion in Kenya, Ghana, and Côte d'Ivoire. Through its distinctive distribution structure, Hatch Africa ensures access for the rural population to high-quality dual-purpose chickens, where currently only low-yielding, local breeds are accessible. The transformational nature of this business makes this a very exciting investment for the fund,” said Roel Messie, CEO of IDH Investment Management, the manager of the IDH Farmfit Fund.
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