Usually, when businesses seek financing, they refer directly to the banks for loans. However, access to financing is still difficult, especially for agricultural businesses mainly due to high interest rates and collateral requirements. Last year, the widespread disruption meant that activities for most agribusinesses in Africa were interrupted, leaving them in dire need for capital to stabilize their operations. To overcome this challenge, 2SCALE initiated a crowdfunding campaign to enable agribusinesses to meet their capital requirements.
After the first successful edition of its crowdfunding campaign, 2SCALEs launched the second edition in May 2021. This campaign featured farmers' groups and SMEs involved in its partnerships across 3 countries - Kenya, Mali and Nigeria with 53 SMEs simultaneously campaigning on the 2SCALE crowdfunding platform. Beyond the different objectives, the participants from all three countries had one thing in common - to raise relatively small amounts of money from their own networks of contacts.
At the end of the campaign, the results of the second cohort were mindblowing in all three countries. Compared to the first cohort, we have gone from 35 to 53 SMEs, with a total of $174,573 raised, and over $109,000 matched by 2SCALE.