|Beneficiaries||Smallholder farmers, women, youth|
|Project Description||Despite the growth of the digital credit market in Africa, it’s not reaching everyone. Less than 4% of the total lending portfolio in Kenya goes to agriculture. The mobile loan products in the market – mostly short-term consumptive loans with small limits- are not suited for smallholder farmers whose livelihoods are constrained by irregular cash flows and inherent risks. Successfully financing this customer segment requires alternative credit scoring and tailored loan products combined with insurance, savings and market linkages.
FarmDrive is a fintech company that provides digital financial services - loans, savings and agriculture insurance - to the smallholder value chain through mobile phones. FarmDrive’s mission is to provide productive loans to smallholder farmers (SHFs) to increase their productivity, incomes, and resilience.
By using a combination of agriculturally relevant data, Know Your Customer (KYC) data, and advanced behavioural analytics, FarmDrive has developed a proprietary ag lending platform with specialized functions to successfully finance smallholder farmers: tailored loan products design, real-time alternative credit scoring, digital loan administration, portfolio management and advanced data analytics on SHFs. All of these functions are highly automated. https://farmdrive.co.ke/
|Legal Scope||Provision of legal advice to: (i) review the current Notes and Term sheets of Engineers Without Boarders, MercyCorps, AK Impact, Zindua Trust (Safaricom SparkFund) (subject to conflicts checks); (ii) draft shareholders agreements and ESOP Plan; (iii) review contracts with farmers, government of Kenya (subject to conflicts checks).|