ThriveAgric, the Y Combinator-backed Nigerian agritech startup, has raised ₦5.3 billion ($3.93 million) in the first series of a commercial paper programme that could grow to ₦50 billion ($37.09 million), extending a debt-heavy funding strategy its chief executive officer Uka Eje says is better suited for its business operations.
The Series 1 issuance, announced on Tuesday during the signing ceremony and media briefing with journalists in Lagos, Nigeria, was oversubscribed after attracting institutional demand above its initial ₦5 billion ($3.7 million) target, the company said.
The move marks ThriveAgric’s first foray into Nigeria’s debt capital markets and opens another channel beyond bank lending for a company whose core challenge has long been access to the right kind of capital.
“Securing [Nigerian] SEC approval for our ₦50 billion CP [commercial paper] programme and completing this oversubscribed ₦5 billion Series 1 raise validates our disciplined approach to corporate governance and capital management,” Eje said. “Beyond the numbers, this institutional backing provides us with the financial flexibility to scale our operations, deepen our outgrower networks, and ensure prompt off-take for smallholder farmers.”
Originally published by TechCabal.