Apollo Agriculture gets $2.1M to finance 24,000 Kenyan farmers

Apollo Agriculture, a Nairobi-based agri-fintech startup founded by Eli Pollak, Earl St Sauver, and Benjamin Ngenga, has secured $2.1 million in local currency debt to finance farm inputs for nearly 24,000 smallholder farmers in Kenya, marking a significant step in expanding agricultural credit access.

The Ksh276 million ($2.1 million) funding, mobilized primarily by IDH Farmfit Fund with risk assessment support from Kaleidofin, will enable the agritech firm to scale its “buy now, pay later” model while reducing reliance on costly foreign currency loans.

Local currency financing unlocks scale

The Nairobi-focused agritech is using a securitisation structure that converts future farmer repayments into investable assets. This approach allows Apollo to attract bank financing in Kenyan shillings rather than dollars or euros, traditionally a major cost burden for African agri-lenders.

Under the model, Apollo supplies seeds, fertiliser, and other inputs upfront, with repayment tied to post-harvest sales. A portion of farmers’ output is sold to recover financing costs, aligning repayment cycles with agricultural seasons. Pollak said the structure reduces perceived risk for banks while enabling access to a segment typically underserved by formal finance.

Blended finance and credit scoring bridge risk gap

The bulk of the Ksh276 million ($2.14 million) facility was mobilized by IDH Farmfit Fund, a blended finance vehicle focused on smallholder agriculture. Kaleidofin, which provides credit scoring for underserved segments, plays a central role in de-risking the transaction.

Kaleidofin CEO Sucharita Mukherjee said the lack of reliable credit assessment has historically limited capital flows into smallholder farming.

By providing standardized credit scores, Kaleidofin enables institutional lenders to underwrite loans to agritech platforms such as Apollo, bridging the gap between capital providers and rural borrowers.

Scaling toward $18.4 million target

The partners plan to scale the securitisation program to Ksh2.37 billion ($18.35 million), potentially reaching 130,000 farmers across Kenya. The structure is designed to recycle capital efficiently, allowing Apollo to reinvest repayments into new lending cycles.

The financing terms for farmers, including interest rates, were not disclosed. However, the company operates a buy-now-pay-later model that embeds financing costs into input pricing.

Growing use of securitisation in African fintech

Apollo’s approach mirrors a broader trend among African startups leveraging securitisation to unlock funding. Companies such as Sun King and d.light have used similar structures to raise dollar-denominated capital for asset financing.

Kaleidofin said it is expanding the model across multiple sectors, including horticulture, dairy, small business lending, and women-led enterprises.

Why this matters

Apollo’s more than $18 million raise highlights a critical shift in African agricultural finance—from donor-led and FX-dependent funding toward scalable, local currency capital markets.

By reducing currency mismatch risks and improving credit visibility, securitisation structures can unlock institutional capital for smallholder agriculture, a sector that employs a majority of Africa’s workforce but remains underfinanced.

If successfully scaled, the model could lower borrowing costs for farmers, improve productivity, and strengthen food supply chains across East Africa. It also signals growing investor confidence in fintech-enabled agricultural lending, a space increasingly viewed as essential for economic resilience. Apollo Agriculture is expected to deepen partnerships with banks and institutional investors as it scales the securitisation platform.